Tips For Relieving Tax Debts

by : Chrischanning

If consumers have managed to dodge debt from everyday items, they should consider themselves lucky but not out of the clear just yet. Taxes come into the equation, and seek to put advantaged consumers into the red with unscrupulous amounts of debt. There are, however, some tips to alleviate this unnerving situation.

Whether or not an individual needs professional help with their tax debts is usually decided upon by the amount they owed. If the amount is considered a petty debt, usually under $10,000, then the individual will be able to handle the situation by themselves if they would wish it. Debts greater than this amount but lower than $25,000 would warrant the need of a tax professional, while debts greater than this consider professional help mandatory.

The IRS has their own financing departments that can help clients pay their debts off on a monthly basis. Just like actual credit companies, consumers can pay a certain amount of their income each month to pay off their tax burdens. This option can be highly variable, and more information can be found by talking to an IRS representative, who can be found online or by calling local government hotlines.

Compromises are somewhat rare, but very possible. Tax debts can be settled with the IRS for less than what the individual owes, but this is going to require a few things. This may include a long term payment plan, a large upfront lump sum, or any number of other options. Consult the IRS for more information on the specific benefits.

If the consumer is looking to get the IRS from calling them and annoying them each and every day, the consumer should look towards the "not currently collectible" agreement. This agreement forbids the IRS to contact the consumer for a specified amount of time, usually a year, but only select individuals may apply.

Lastly there is bankruptcy, although it is a decision that isn't going to come as easy. All debts can be settled by filing for bankruptcy, but keep in mind that bankruptcy will ruin one's credit rating for a good decade. If one is interested in this option, they should make sure that there is no possible way their income can't supplement their debts.

In Conclusion

Taxes are something that everyone has to pay, and not everyone can keep up with them. If that's the case, one should conference with tax specialists or confront the IRS themselves for more information on getting out of debt in a reasonable amount of time.