Finding out that you owe the IRS a debt can be a very upsetting experience It could be hundreds to thousands of dollars that many simply don’t have. Tax relief solutions are offered by the IRS that can help people that don’t have the money to pay back right away. A tax relief solution available is known as not collectible status. Many find not collectible status helpful if they are having their wages garnished or their properties have liens on them. Having wages being garnished can be a financial nightmare for people that already aren’t sure how to pay their bills on time. Property liens on homes and properties can be quite upsetting as that is quite often where a person calls home.
A not collectible status can make it possible for you to stay in your home and avoid the dreaded lien process. It is likely going to require obtaining a tax attorney for this type of request as there is paperwork with the IRS involved. Another big benefit of not collectible status is it offers tax relief for long enough to get financial affairs in order. Ten year statutes of limitations applies to IRS tax bills and they cannot be collected after ten years has expired. Tax relief solutions that may be useful for those that can repay some of their debt is an installment plan. An installment plan can be a lifesaver for those that don’t have the money upfront but are able to make monthly payments that are less difficult. In order to get a payment plan a person must fill out a particular form online or send it through the mail and also pay an application fee.
Payment methods are offered that give some choice to those that get approved for the installment plan. A smart method for payment is the automated bank withdrawal because it will be paid on time and you won’t have to worry about whether you have paid it or not. An offer in compromise is the third and final type of tax relief solution that can be utilized. The offer in compromise is when there is a payment for less than what is believed to be owed and the IRS settles for that lowered amount. Approval for offer in compromise is typically the most difficult of all other options as you must show dire circumstances to get approved. Those that can show they owe less than the IRS billed you for may also be able to get this type of settlement approved. This one is excellent if you can get it as it can save you a lot of money and financial issues. The IRS tax relief solutions above can make it possible for you to get out of debt faster and find a solution that works for your financial situation.Getting Creative With Solutions Advice