Having a mounting tax debt is always stressful and can be overwhelming. This is especially true because if you cannot pay the IRS, it can garnish your wages, put a levy on your bank accounts, put a lien on your home, or use other aggressive collection tools that can seriously affect your finances. To avoid such collection methods, finding ways to make your tax burden more manageable is critical.
The following are some ways an experienced tax debt relief attorney can help you reduce your tax burden:
Penalty Abatement – Overdue tax debts continue to grow because the IRS does not hesitate to add penalties for delinquency. These penalties can add up and in some situations, removing them can make your debt more affordable. You must meet certain criteria to qualify for a penalty abatement including having a good reason for your delinquency, such as bad advice from a tax advisor or being the victim of a natural disaster.
Installment Agreement – The IRS wants its money so it is generally willing to work with overdue taxpayers to agree to a payment plan that is reasonable for you based on your income. If you fail to make your payments, however, it can affect your eligibility for any future arrangements with the IRS.
Offer in Compromise – Like other types of debts, your attorney can help you make a written offer for a settlement amount called an offer in compromise.1 If accepted by the IRS, you will get to make a lump sum payment for a reasonable percentage of your debt based on your assets. The IRS will then forgive the rest of your tax debt.
Non-Collectible Status – If you have no way to make payments to the IRS, you can provide documents of your inadequate income and assets and your account may be placed in “Currently Not Collectible” Status.2 This does not reduce your tax burden, however, as interest will continue to accrue, though it does provide temporary relief from IRS collections.
An Experienced Chicago Tax Relief Attorney can Help You
If you need assistance handling your tax debts in the Chicago area or nationwide, call an IRS debt relief lawyer at Attorneys Tax Relief LLC at 800-819-6866 today.