Skip to main content

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.

Comments

Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Money Moves: Imagine Playing Your Financial Life like a Chess Game

To say chess is a popular game would be a gross understatement. Chess, for at least 1500 years, has been considered to be not just a game, but a true test of intellect and character. One can learn a great many things about chess that can be applied to one’s life, not the least of which is one’s personal finance. Chess is a game that requires patience, foresight, and an ability to understand your opponent. Much like your personal finance, these qualities are required for you to come out on top in the end. Here are a few things you can take away from playing chess and use to improve your financial life:

The Financial Implications of Wills and Probate

Despite the stress and sadness that surrounds the passing of a person, death is synonymous with money. If the deceased has left behind anything of value, the family of that person is forced to deal with the access and distribution of such assets. This may entail the payment of inheritance tax, analysis of the will, and the application for probate. Probate is basically the process involved in establishing who can distribute the assets tied up in a will. In most cases, the deceased should have named an executor in their will – this is the person responsible for obtaining probate and dealing with any other financial implications of the death. The amount payable in inheritance tax is declared by the government or state, and the desired distribution of any monies and other assets should be clearly laid out in the will. However, the cost of obtaining probate is a further financial implication of death and one that can vary wildly should it not be carefully monitored. Whilst probate is