Taxpayers that currently owe tax debt should call a tax attorney IRS specialist today for help. IRS debt is a problem that can affect anything from an individual’s finances and credit ratings to assets and personal property. It is important for taxpayers to understand that there are settlement options available to them, regardless of their specific financial situation. Tax specialists such as an IRS tax attorney can advise about the best programs to help taxpayers get out of debt.
An IRS debt tax attorney is an excellent source for taxpayers interested in their debt resolution options. Every taxpayer has different factors affecting their finances, and therefore the IRS has many different plans. Some taxpayers that find themselves completely unable to pay due to financial hardship may qualify for “Currently-Non-Collectible” (CNC) status. Being considered CNC allows for temporary non-payment of tax debt while the individual’s monthly expenses are greater than their income. To maintain this status, a taxpayer must stay compliant and properly file and pay on all future returns as well as experience no increase in income that would change their finances. For help with this, taxpayers are recommended to see a tax attorney about IRS requirements.
For taxpayers that are capable of paying off their balance, but have other obligations, IRS tax attorneys suggest entering into an Installment Agreement (IA). IA’s are contracts in which the taxpayer agrees to pay their balance over a set period (typically 60 months). These agreements result in smaller payments, allowing for more financial freedom during the settlement process. There are also variations on the IA that leave room in a taxpayer’s personal budget for other required payments like mortgages or student loan payments. In rare occasions, IRS debt tax attorneys can secure an Offer-In-Compromise. This program has the taxpayer offer the IRS as much as they afford per month, based on necessary expenses, over a short period. In return for this, the IRS will reduce the balance owed.