Feb 16, 2012

Are there any way of paying down my tax dues and emerging debt free?

Any kind of debt can become a burden on a person’s life, whether credit card debt, auto loan debt or eve n IRS tax debt. The IRS owes tax from everyone and when a person fails to pay the required taxes on time, he gets indebted to the IRS. Such taxes accrue to form a huge amount and you end up drowning in an ocean of tax debt. Most people wonder whether or not there are options to seek tax debt relief just as there are ways to get rid of your credit card debts. Now, both tax debt solutions and credit card debt solutions are almost similar to one another as both options help you eliminate your debt burden. Have a look at some tax debt relief options that you may resort to in order to emerge debt free.

Guaranteed installment agreement option

If your tax debts amount to something less than $10,000 to the IRS, you can easily resort to the guaranteed installment agreement option. Apart from these aforementioned criteria, you also have to make sure that you repay your taxes and file them regularly in the coming years. The Internal Revenue Service will not accept this particular installment options if they see that you’ve been paying through other installment agreement options for the last 5 years.
   
Streamlined installment agreement

If you choose this particular option, you don’t require filling out 433-F Form that the IRS asks you to fill up in order to analyze your present financial scenario. However, if you want to make payments through this particular option, you cannot owe an amount of debt that is more than $25,000 and you also need to promise them to repay the amount within a period of maximum 60 months.
   
Partial payment installment agreement

If you don’t get desirable results from the above mentioned installment agreements, you can opt for this option where you can make minimum payments according to your present financial situation. However, the IRS will keep on evaluating your present financial state and change the terms and conditions on this agreement with your changed affordability.

Whichever tax debt solution you choose, make sure you stay true to your words so that you start repaying the amount once you sign up with the IRS. If you still default on the payments even after seeking tax debt relief, the IRS may take some other steps against you. Manage your personal finances to avoid this and live a debt free life.

No comments:

Post a Comment