A majority of Americans would rather file their returns and pay any extra taxes owed than deal with the Internal Revenue Service. Some taxpayers, who can't pay the money they owe, make the mistake of not filing in hopes that the lapse will go unnoticed. This is rarely a successful strategy. Instead of risking seizure of assets, lawsuits, and wage garnishments, applying for the IRS tax debt forgiveness AZ tax experts recommend is a better idea.
The easiest way to pay the money you owe is by negotiating an installment agreement. If you owe ten thousand dollars or more, you want to try to get a guaranteed agreement. You will have up to three years to complete the payments. As long as you are making the payments, the Internal Revenue Service will not file liens against your property.
A partial payment installment agreement is hard to get, but it is long term. You only pay a portion of your back taxes. You must supply the IRS with full financial disclosure statements. You'll have to prove you don't have cash, or saleable assets, before the government will consider this type of plan. Both of these plans assume you don't miss payments.
An offer in compromise is hard to get, but if you have some cash on hand, it might work. You should at least try this plan before you try the partial payment agreement. You have to pay a lump sum, or negotiate a short term payment agreement, for a portion of what you owe. Once you've settled this debt, you won't owe the IRS any more back taxes.
If the Internal Revenue Service decides you are completely without resources, and aren't likely to have much in the foreseeable future, you might qualify as not currently collectible. If you can get this status, the Internal Revenue Service will stop trying to collect for a year or so. You can file a collection appeal which will stop the government from putting liens on, or seizing, any property you have.
You could consider a credit card settlement. There are companies that offer this solution, and they should be avoided. Most of them take the payments long before they negotiate any settlement. During this time you will still get collection notices. Your credit will be negatively impacted. A better idea is to set up a credit card settlement yourself with your credit card company.
Bankruptcy could be an option. Owing back taxes should not be the only reason you file for bankruptcy though. Unless you qualify under government guidelines, bankruptcy won't help you with your back taxes. If you qualify and file Chapter 7, you could wipe out all your tax debts. A Chapter 11 bankruptcy will eliminate a portion of the debt. You will still be required to pay the rest.
The best idea is to pay your taxes on time in full. If you can't do that, there are some options open to you. Trying to avoid or evade the Internal Revenue Service is not one of them.
The easiest way to pay the money you owe is by negotiating an installment agreement. If you owe ten thousand dollars or more, you want to try to get a guaranteed agreement. You will have up to three years to complete the payments. As long as you are making the payments, the Internal Revenue Service will not file liens against your property.
A partial payment installment agreement is hard to get, but it is long term. You only pay a portion of your back taxes. You must supply the IRS with full financial disclosure statements. You'll have to prove you don't have cash, or saleable assets, before the government will consider this type of plan. Both of these plans assume you don't miss payments.
An offer in compromise is hard to get, but if you have some cash on hand, it might work. You should at least try this plan before you try the partial payment agreement. You have to pay a lump sum, or negotiate a short term payment agreement, for a portion of what you owe. Once you've settled this debt, you won't owe the IRS any more back taxes.
If the Internal Revenue Service decides you are completely without resources, and aren't likely to have much in the foreseeable future, you might qualify as not currently collectible. If you can get this status, the Internal Revenue Service will stop trying to collect for a year or so. You can file a collection appeal which will stop the government from putting liens on, or seizing, any property you have.
You could consider a credit card settlement. There are companies that offer this solution, and they should be avoided. Most of them take the payments long before they negotiate any settlement. During this time you will still get collection notices. Your credit will be negatively impacted. A better idea is to set up a credit card settlement yourself with your credit card company.
Bankruptcy could be an option. Owing back taxes should not be the only reason you file for bankruptcy though. Unless you qualify under government guidelines, bankruptcy won't help you with your back taxes. If you qualify and file Chapter 7, you could wipe out all your tax debts. A Chapter 11 bankruptcy will eliminate a portion of the debt. You will still be required to pay the rest.
The best idea is to pay your taxes on time in full. If you can't do that, there are some options open to you. Trying to avoid or evade the Internal Revenue Service is not one of them.
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