Settling your IRS tax debt – 4 ways you can adopt to become debt free
Are you overburdened with tax debts and are you spending sleepless nights thinking about the large debt burden? If answered yes, you need not worry as there are many people who owe huge amounts on their IRS tax debts. Just like you can go for credit card debt settlement for settling and repaying your credit cards, you can also go for IRS tax settlement by resorting to some particular options. If you’re unaware of the various options that you may resort to, you can read on the concerns of this article.
- Try setting up a good repayment plan: If you owe money to the IRS and you’re unable to repay the amount because of financial hardship, you must look for some alternative repayment plans that are available for you. You can go for installment programs but this need a bit of negotiation with the IRS so that they allow you to repay the amount in small and affordable payments throughout a long period of time.
- Get the total amount reduced: In many cases, the debtor is entirely unable to repay the IRS tax debt as he may be going through some serious credit crunch. In most cases you may need an attorney to help you with getting your IRS tax debts settled. If the attorney is able to negotiate in the most effective manner with the IRS, you can easily be able to secure a lower amount than what you actually owed. You can repay this amount in a lump sum or through monthly installments.
- Take out a personal loan: If your IRS tax debts are bothering you for a long time and you have no other option, you must take out a personal loan and utilize the proceeds in repaying your IRS tax debt. This way you can save your credit score and also negate the effects of a wage garnishment. With a fairly good credit score, you can easily get the loan of the amount that you want and then you can pay off the borrowed amount to the bank or the financial institution.
- Go for Offer-in-Compromise: In very rare cases of tax debt, the Internal Revenue Service accepts an Offer in Compromise, an agreement that relieves a taxpayer of liability of debt. This measure can be considered as the last resort as it may hurt your credit score in the long run. You have to show financial hardship to the Internal Revenue Service so as to get an offer of IRS tax settlement.
Therefore, if you’re drowning in an ocean of IRS tax debt, you must take help of the above mentioned options so that you may again get back to normal life. Get help from a financial consultant so that you can take the right decisions about your finances and get the best out of your IRS tax settlement.
Frank Martin is a writer for various finance related communities, websites and blogs. He has got an immense knowledge on various financial issues and writes articles on debt consolidation financial planning, tax debt resolution, debt settlement and even writes posts on recent financial news in the US.
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