Tax Debt Settlement

Tax debt settlements are a little more precarious than the normal debt settlement because the creditor is the U.S. government. Uncle Sam has greater penalties and is far more demanding in repayment of the debt settlements due him. However, the government can actually be a fair and merciful creditor in resolving these situations. The key for accomplishing a tax debt settlement is to keep the assessing office informed and satisfied that proper advancement of repayment is occurring. Settlements simply require following the correct procedure and observing the use of forms and deadlines established by the government office.

If a notice of a tax debt settlement due is received from the federal or state government offices, it is important to cooperate by providing requested documentation in a timely manner. If the revenue filings have been properly documented and with honest intentions, then there is no reason to panic when called on to resolve a questioned balance due. Honest mistakes occur and the IRS employees are trained to recognize the signs of both honest and dishonest errors and thereby recognize improprieties, whether intentional or not. Correcting an error, however honest it may be, is the goal.

Keeping the lines of communication open between the participants will hasten the proceedings and eliminate the indebtedness. Resolution is attained by clearing all questions of error and then cooperating in setting up a repayment schedule for the agreed terms. There are so many changes made each year in the federal revenue filing process, and it isn't uncommon for simple and sometimes complicated, mistakes to occur when filing. Believing in God's promises comes in handy for such times. His peace is promised in the midst of trials, even tax debt settlements. "For thou hast been a strength to the poor, a strength to the needy in his distress, a refuge from the storm, a shadow from the heat" (Isaiah 25:4). If people would conduct their financial affairs in honesty from the beginning, then resolving tax debt settlements wouldn't cause such fear and stress.

Resolving debt settlements are not an occurrence to stress about each tax season as tax forms are completed. If there is any doubt in preparing income tax documents, it is best to consult a tax attorney or accountant who is trained in the entire tax-law process. If they discover an error before the filing is submitted for government processing, the likelihood of getting involved in a tax debt settlement is not only lessened, but the stress to deal with the event is lessed should it still occur.

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