Tax Debt Relief
If you have fallen behind of your taxes you can end up paying much more in interest and penalties than you owe the government. Getting relief from the Internal Revenue Service (IRS) isn’t as hard as you might think it is as long as you work with the IRS.
The IRS is a lot more forgiving to people who fall behind and owe the government money. The IRS won’t just let you walk away without paying anything but they will look at your financial situation.
The IRS looks at several different financial variables including how much you originally owed, how much interest has accrued and how much penalty you owe. The IRS also looks at your income to help come up with a realistic amount of money you owe.
You can negotiate an agreement with the IRS with our without an attorney. We recommend that you have an attorney to help you negotiate the best deal. If you’re lucky you might be able to pay less than half the money you owe and walk away free from the burden of owing the government money.
Not only will the IRS allow you to pay less than the amount of money you owe they will also let you setup a payment plan. You might not have the cash you need to payoff the government which is why they will let you pay in installments.
You will pay a penalty for this privilege in the form of interest. So if you have any cash in a savings account or certificate of deposit account you should take this money to pay down the debt you owe the IRS. Especially since the highest CD rates and savings accounts are around 1.75% and the interest rate you pay the IRS can be in the double digits.
Another option for you is to hire a debt relief company but I don’t suggest you do this. Many of these companies are fraudulent, take your money,don’t actually do anything and make your situation worse. If you feel you need help just get yourself an attorney that specializes in this area.
Categorised as: Uncategorized