Common Strategies for Getting Out of Tax DebtGerald Nordstrom
Getting behind on your taxes can lead to huge problems in your life. You are likely dealing with stress and anxiety about the IRS coming after you; you could already be dealing with financial struggles, and that’s why you got behind on your taxes in the first place; your family life may suffer as a result of all this stress and financial strain.
It’s probably safe to say that you want to get out of tax debt as quickly as you possibly can. You are also likely overwhelmed at the thought of tackling what seems like an enormous obstacle. Luckily, you don’t have to handle tax debt and all the stress that goes with it on your own.
Strategies for Putting Tax Debt Behind You
A tax lawyer can help you put tax debt behind you. The following are a few strategies for getting out of tax debt quickly.
One of the best methods for handling back tax debt is to set up payment arrangements with the IRS or the state. The vast majority of the people who owe money in taxes aren’t in a position to pay a large tax bill all at once. This makes them stressed as they try to figure out how they will come up with a large lump sum of money.
But maybe they don’t have to come up with a large sum—maybe they can make payments. The government allows payment arrangements for most taxpayers, which makes it easier for you to pay your back tax debt in easy-to-manage monthly installments.
In some cases, a settlement option might work for you. Perhaps you are coming into a sum of money or you are willing to sell a vehicle to pay your tax debt; however, the amount of money you could get from this still doesn’t fully meet your tax liability.
The IRS might compromise and agree to a settlement. If they can see that you’re trying your best to meet your tax obligations, they will often work with you.
Removal of Penalties and Interest
Another option that can help in getting out of tax debt faster is asking the IRS or the state to remove added penalties and interest. In many cases the bulk of a tax bill will be made up of these fees, which makes it more difficult for you to pay your tax debt.
In some situations, particularly if you show good cause, the government will agree to waive these fees. This makes it much easier for you to pay off your tax debt faster. An example of good cause would be if you filed your taxes late because you were in the hospital for an extended period of time.
Reach Out to a Tax Debt Specialist
You want to get out of tax debt, but wanting something and taking action are different things. Now’s the time to take that first step toward resolving tax debt for good.