Tax Debt Reduction

Finding avenues to tax debt reduction is imperative for people finding IRS notices of liens coming to the door. Some may panic when this happens, and this is not the correct response. When notices like this appear, for whatever tax reason, seek out professionals who understand how to handle the IRS as well as have insight and the legal expertise to mitigate further action by the government. Do not think that standing up alone in court as your own legal representation is the right way to go, because this will land that person in even more trouble. The IRS is very powerful and can seize bank accounts, cars, paychecks and more even businesses. When these assets are seized, the seizures are termed as either liens or levies. The only way to appease the IRS is to pay what is owed, or get an attorney to fight for the right to reduce the debt. Some individuals have been successful at tax debt reduction by lowering what is owed more than 60 to 70 percent! An alternative to lowering the amount of taxes owed is to begin making incremental payments known as installments.

Not many people may know that the IRS allows debtors to structure a repayment plan on their own terms, which is called an offer in compromise. Of course, the money must be paid back by a certain date, but this gives much more freedom for the debtor to make manageable payments over time instead of incurring more interest and penalties on large unpaid balances. Seeking out the advice of a tax debt reduction professional can make the whole process much clearer, and educate the individual on some budgeting tips so that other financial obligations can continue to be met on time. In some cases, relief may be appropriate when the individuals assets have depreciated in value, and there are several types of tax relief situations the individual will want to be sure to discuss with the tax attorney. "But whoso hearkeneth unto me shall dwell safely, and shall be quiet from fear of evil." (Proverbs 1:33)

Companies could also benefit from tax debt reduction when the IRS sends what is termed as an enforced collection notice for unpaid payroll taxes. All of the assets of the business are now in jeopardy including bank accounts. Therefore, that business that regularly outsources the payroll function should be sure the outsourced specialist is regularly paying all appropriate taxes on time. If all the money is not recovered from the business then the IRS will go after the owners next. The longer it takes to pay what is owed, the more penalties and interest accrue and the more costly it will be to settle the debt. The tax rules state that those who willfully fail to file returns are liable. In many cases the IRS will be more than willing to work with individuals who were not aware that a filing was in order, and will work towards some type of repayment agreement.

Anyone handling these issues should carefully familiarize themselves with the tax laws in the state in which he or she resides so that no mistakes are made that might come back to haunt later on. Consultation with a tax debt reduction professional will yield up all the tax law and regulation knowledge that is needed to appropriately deal with unpaid amounts. Individuals who have not filed a return in more than a few years will find the IRS knocking quite loudly at the door. Should the back dated returns not be correct on a regular basis, the case will be forwarded to a division that handles criminal evasion issues, and this is a situation everyone would like to avoid.

What if a person receives a notice from the IRS but the notice is for taxes due by a former spouse? Usually the ex-spouse is responsible to pay, but the IRS can come to the former spouse and require payment as well. The only way to get relief from having to pay taxes on what a former spouse owes is if mistakes were made on the returns. The tax debt reduction professional will tell you this is termed as innocent spouse relief, but other regulations impinge on this action, so be sure to consult with the debt professional prior to taking any action. No matter what though, be sure the issue is resolved quickly or else the IRS will freeze bank accounts or begin to garnish the paycheck. The IRS gives the debtor 21 days to resolve the issue with them or the money is gone.

In some cases and working with a tax debt reduction professional, an abatement can be obtained for penalties paid in the past on past due taxes. In order to do this the proper form must be filled out and filed under the auspices of someone who knows the laws thoroughly. The abatement will not occur without having a very good reason why the request is being made. Perhaps someone in the family is seriously ill or hardships are being experienced because of a lack of employment in the area. The person wanting the abatement can only follow the procedure, and then wait for the answer from the IRS as to whether or not the stated reasons are acceptable.

There are many situations that come up regarding taxes owed which can usually be solved without too much time and expense if the individual acts early enough to avoid all the liens, levies and penalties incurred when failing to take action soon enough or at all. Do not be one of those individuals that decide to look the other direction in the hopes that the problem will finally go away. It won't. Seek out the tax debt reduction professional.

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