“Tax debt” – just the thought of it can make you cringe.  No one wants to receive the dreaded tax bill from the IRS and when tax debt is hanging over your head, it is difficult to know where to turn.  There is help available, however.  A tax attorney and their team of professionals can help evaluate your tax liability and work with you and the IRS to resolve the amount due.

If you do find yourself in a situation where you faced with tax debt, there are some things that you can do to save money and end the tax woes.  Here are the top 10:

1.    Double check your original return.  There may have been deductions that weren’t taken that could lessen your tax obligation.

2.     File your return on time to avoid late filing penalties

3.    Pay your taxes in full when you file your return to avoid interest and penalties.  A personal loan, credit card advance, bank loan or cashing in 401K or insurance policies to pay in full will save you money in interest charges and may cost you less in monthly payments than an Installment Agreement.

4.    If you are unable to file or pay on time, request an extension.  Be sure to meet the extension deadline to avoid late filing penalties.

5.    If you cannot afford to pay in full when you file your taxes, pay as much as you possibly can.  This will lessen the amount that will be charged interest and penalties.

6.    If you can pay your tax debt in full in 60 – 120 days, request the payment arrangement with the IRS.  They are likely to approve the request for full payment with a short term repayment and the amount of penalties and interest will be much less than if you enter an Installment Agreement.

7.    If you need an extended amount of time to pay, requesting an Installment Agreement will allow you to settle the tax debt by making monthly payments over an extended amount of time.  Penalties and interest will continue to accrue.

8.    Submit an Offer in Compromise to settle the amount you owe in one lump sum and you could drastically reduce the amount of penalties and interest that you owe.

9.    Request a Penalty Abatement to reduce or remove penalties from the principle liability amount.

10.    In an extreme financial hardship case, request Currently Not Collectible status so that IRS collections are temporarily halted.  If financial situation improves, collection will become active again.

Not sure which of the 10 options are best for you?  Contact a tax attorney immediately and their team of professional tax specialists can assist you in attacking your tax debt head on.

Call us today at 1-877-839-1105 for a FREE consultation or use the contact form => Contact Form