Understand Your Tax Debt Relief Options for a Fresh Start
Every day that you put off resolving your tax debt, penalties and interest are added. The IRS won’t forget about the taxes you owe. If you ignore the payment demands, they have the power to garnish your wages, put a tax lien on your property and physical assets, or issue a bank levy freezing your bank and investment accounts.Why not work with a tax consultant to structure a Tax Debt Relief Option that will settle your back taxes and provide you a fresh start?
If you cannot pay the entire amount of your tax debt but are able to pay a partial amount, there are alternatives options, such as (1) permitting taxpayers to make payments they can afford over an extended time or (2) reducing the total amount of debt owed to a total amount the taxpayer could afford. These options are (1) an Extended installment agreement and (2) an Offer in Compromise.
Extended Installment Option
An EIA is a customized agreement to help individual taxpayers and small businesses get tax debt relief from their overdue tax liability through an extended installment agreement. To be eligible for an extended installment agreement, you must:
• Owe Back taxes of not more than $50,000, and
• Be able to pay monthly over not more than six years to pay off the tax debt owed, and
• All prior year’s tax returns must have been filed and paid.
Benefits of the Extended Installment Option (EIA)
There are many benefits to using the Extended Installment option, including:
- Individuals and businesses can pay their taxes in smaller, manageable amounts over time.
- Taxpayers can limit penalties and interest on unpaid tax debt.
- Taxpayers can avoid further collection efforts such as bank levies, tax liens, asset seizure, or garnishing their wages.
- Taxpayers can resolve their back tax debt and get a fresh start.
How Do I Apply for an EIA with the IRS?
You can directly apply for an Extended Installment Agreement with the IRS.Although, it might take several months to gather and copy the documentation, fill out various forms, and complete the application if you choose to do it yourself. Enlisting an experienced Tax Consultant’s help can help expedite the process so you can get tax debt relief as soon as possible.
No matter how complicated your tax problems are, the tax professionals at Anderson Bradshaw Tax Consulting can provide you with legal options to resolve your unpaid tax debts. We’ve helped thousands of individuals and businesses stop IRS harassment, reduce amounts owed, and create a repayment plan they can afford. Let Us Help Settle Your Tax Debt and Give You Peace of Mind.
Offer in Compromise Option
When a taxpayer has experienced unforeseen events that have made it difficult to pay the total amount of the taxes owed, they may be able to qualify for an Offer in Compromise to obtain tax debt relief for less than they owe. The qualifications to be eligible for an Offer in Compromise are:
- The taxpayer cannot be a part of any ongoing bankruptcy proceedings, and
- They must have already filed and paid all taxes for the preceding years, and
- The taxpayer can prove they do not have any additional means of obtaining funds to help them pay their tax liability in full.
If these qualifications are met, an Offer in Compromise can be submitted to the IRS for approval. If they approve the OIC, you can choose to make monthly payments or make a lump sum payment.
Benefits of an Offer in Compromise (OIC)
There are many benefits of the Offer in Compromise.
- It helps prevent a buildup of unpaid tax liabilities.
- Taxpayers can reduce their IRS Taxes Owed.
- It relieves the taxpayer from constant worry about a bank levy or wage garnishment.
- It stops IRS collection agents from calling and threatening legal action.
- Taxpayers can settle their debt and get on with their lives.
Can I Request an Offer in Compromise?
Filing for an IRS Offer in Compromise is challenging. Various forms are required, and a considerable amount of documentation is needed to verify employment, all personal assets, financial resources, housing payments, loans, credit cards, living expenses, etc. Copies of bank statements, tax returns, real estate valuations, paychecks, and legal filings may also be required..
The entire process can be overwhelming and time-consuming for people not well-versed in tax filings. If you seek IRS approval of the OIC, you can’t afford to make mistakes or submit an incomplete package. An experienced tax professional can ensure your Offer in Compromise is complete, accurate, and provides the best chance of acceptance.
Looking for Tax Debt Relief? Contact the Highly Reputable Anderson Bradshaw Tax Consulting Today
If you are struggling with tax debt, the professional tax consultants at Anderson Bradshaw can help you through your unique tax situation. With over 30 years of experience in the industry, we have seen almost every tax issues and have learned the best ways to handle each one accordingly. You can feel confident knowing your struggles and difficulties with the IRS can be resolved and corrected quickly and efficiently at Anderson Bradshaw Tax Consulting. For further information or to schedule a consultation please contact Anderson Bradshaw Tax Professionals at 877.550.3911 or visit www.AndersonBradshawTax.com to learn more.