Most Americans file returns and pay any taxes owed in full on or before the April deadline. The people who get into trouble are those who find they can't pay what they owe and do not file anything, hoping the Internal Revenue Service won't notice. This almost never works. Instead of having them seize your assets and sue you, you should try a plan for IRS tax debt forgiveness AZ experts say can work.
The easiest way to pay the money you owe is by negotiating an installment agreement. If you owe ten thousand dollars or more, you want to try to get a guaranteed agreement. You will have up to three years to complete the payments. As long as you are making the payments, the Internal Revenue Service will not file liens against your property.
Another installment plan that may work for you is the partial payment agreement. This is harder to get approved than the guaranteed agreement. If you owe more than ten thousand dollars, with no cash, or assets you could sell, and can prove it by providing comprehensive financial disclosure documents, the Internal Revenue Service may agree to this long term plan. You will only pay a percentage of the total you owe.
An offer in compromise is hard to get, but if you have some cash on hand, it might work. You should at least try this plan before you try the partial payment agreement. You have to pay a lump sum, or negotiate a short term payment agreement, for a portion of what you owe. Once you've settled this debt, you won't owe the IRS any more back taxes.
If the Internal Revenue Service decides you are completely without resources, and aren't likely to have much in the foreseeable future, you might qualify as not currently collectible. If you can get this status, the Internal Revenue Service will stop trying to collect for a year or so. You can file a collection appeal which will stop the government from putting liens on, or seizing, any property you have.
You could consider a credit card settlement. There are companies that offer this solution, and they should be avoided. Most of them take the payments long before they negotiate any settlement. During this time you will still get collection notices. Your credit will be negatively impacted. A better idea is to set up a credit card settlement yourself with your credit card company.
Bankruptcy is an option, but it won't be easy. You should only consider this if you meet the IRS requirements for eliminating debts. With Chapter 7, you are able to discharge all your obligations. With Chapter 11, some of the debts are wiped out, and a payment plan is set up for the remainder.
The best idea is to pay your taxes on time in full. If you can't do that, there are some options open to you. Trying to avoid or evade the Internal Revenue Service is not one of them.
The easiest way to pay the money you owe is by negotiating an installment agreement. If you owe ten thousand dollars or more, you want to try to get a guaranteed agreement. You will have up to three years to complete the payments. As long as you are making the payments, the Internal Revenue Service will not file liens against your property.
Another installment plan that may work for you is the partial payment agreement. This is harder to get approved than the guaranteed agreement. If you owe more than ten thousand dollars, with no cash, or assets you could sell, and can prove it by providing comprehensive financial disclosure documents, the Internal Revenue Service may agree to this long term plan. You will only pay a percentage of the total you owe.
An offer in compromise is hard to get, but if you have some cash on hand, it might work. You should at least try this plan before you try the partial payment agreement. You have to pay a lump sum, or negotiate a short term payment agreement, for a portion of what you owe. Once you've settled this debt, you won't owe the IRS any more back taxes.
If the Internal Revenue Service decides you are completely without resources, and aren't likely to have much in the foreseeable future, you might qualify as not currently collectible. If you can get this status, the Internal Revenue Service will stop trying to collect for a year or so. You can file a collection appeal which will stop the government from putting liens on, or seizing, any property you have.
You could consider a credit card settlement. There are companies that offer this solution, and they should be avoided. Most of them take the payments long before they negotiate any settlement. During this time you will still get collection notices. Your credit will be negatively impacted. A better idea is to set up a credit card settlement yourself with your credit card company.
Bankruptcy is an option, but it won't be easy. You should only consider this if you meet the IRS requirements for eliminating debts. With Chapter 7, you are able to discharge all your obligations. With Chapter 11, some of the debts are wiped out, and a payment plan is set up for the remainder.
The best idea is to pay your taxes on time in full. If you can't do that, there are some options open to you. Trying to avoid or evade the Internal Revenue Service is not one of them.
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