There are many reasons why people are unable to pay their taxes – economic setbacks, loss of job, disability, illness etc. In situations like this, many people believe that paying certain taxes and debts is not that important. But, the fact is that people have to pay their taxes because IRS can use forced collections methods to get this money from you.
People need good tax debt solutions in order to prevent or fight the aforementioned IRS collection methods like IRS tax liens, IRS bank levies, interest and penalty abatement, wage garnishments and more. (1) Keep in mind that any taxpayer can get in a situation where they have to face serious tax problems. There is a chance that you have not be contacted by the IRS for a few years, but out of nowhere, you can get a notice of intent to levy mail. From that moment on, you will have to figure out how to avoid the IRS collections methods.
Staying Away From Serious Tax Problems
Preventing things is much smarter than trying to fix them. You should address this issue from the start. In order to achieve this goal, you have to act fast and identify the problems early on.
First of all, you should get in touch with the IRS in case you can’t pay taxes when you file. It turns out that the IRS is willing to assist individuals who can’t pay debts by providing a few tax debt solutions. By doing this you will avoid critical tax problems. Explain why you are unable to pay the taxes and they will help you.
Next, you should file and pay the taxes on time in case you want to avoid IRS collections. In cases like this, you won’t need any tax debt solutions. Remember that if you are able to pay the taxes, you must file and pay that debt.
IRS Collections Actions
If you have tax debt, the IRS can use a few collections actions/methods to get that money from you. For starters, they are using Wage Levy. This method is used frequently and it can seriously affect your everyday life. Namely, this method can take up to 75% of people’s paychecks. (2) So, you should give away between 50% and 75% of your paycheck until the debt is cleared. The worst part is that they usually don’t take your monthly bills into account. This is a serious situation and that’s why it is highly recommended to use professional assistance like the one provided by TaxPM.
Additionally, they can use bank levy and asset seizure.
Tax Debt Relief Solutions
There are a few tax debt relief solutions that you can use. For instance, the installment agreement allows you to pay the debt over a pre-determined period of time. There’s also an Offer in Compromise which allows you to pay a portion of your debt, but the IRS will consider that you have paid the entire debt.
These tax issues can be quite complex and that’s why it’s a smart idea to get professional tax advice from companies like TaxPM.