How To Get Out of Tax Debt
Tax debt can hang around your neck like an anchor. The question is how to get out of tax debt with a minimum of pain? The answer is to use a tax professional who can step between you and the IRS.
There are many different ways you can go into debt. There are student loans, mortgages, car loans, credit card debt and so on. Of all the possible financial debts, tax debt is the worst by far. There is simply no way to get rid of it other than to deal directly with the tax agency in question, whether it be the IRS or some state agency, in hopes of negotiating a reduced debt and payment amount.
Need Help with Tax Debt Problems?
Click Here To Talk to a Tax Expert
You’ve seen the ads on television. There are services claiming they can get the IRS to walk away from hundreds of thousands of dollars of tax debt for a few piddling pennies. I’ll assume you aren’t a full blown sucker and just say such claims are dubious at best. The truth of the matter is the IRS thinks you owe a bunch of money, which means you do for all practical purpose. This means a negotiation is needed.
The IRS will work with parties who are willing to pay on their tax debts. Is the Agency going to accept $200 for a $200,000 tax debt? It is not likely. That being said, they may accept $10,000 for a $200,000 tax debt depending on your personal situation. The Agency will look at a host of issues like your current assets, wages and financial obligations. Then there is a lot of back and forth negotiating to come up with a figure both the Agency and you are comfortable with as well as a potential payment plan.
Need Help with Tax Debt Problems?
Click Here To Talk to a Tax Expert
Why would the Agency negotiate with people who have tax debts? Well, it knows it will make far more money in the long run if can get you back in the system and making regular payments than if it has to spend time and money hunting you down. It is really that simple – the return on investment of collections.
So, should you just call up the agency seeking to negotiate? Only if you are out of your mind and want to get fleeced. IRS agents are trained to go after and attack taxpayers who simply don’t know the 50,000 plus pages of the Internal Revenue Code and regulations nor their rights. You need an alternative. You need a representative – a tax attorney or agent who knows the information and can argue on your behalf. Doing it any other way is just nuts.