Paths out of a Nightmare
Falling into tax debt is one of the most stressful situations a person can endure. Constant calls from tax collectors have you in knots, and in fear for your financial future, as well as your family’s well-being.
Fortunately, there are several paths to take that lead out of those dark woods, and the following list contains some of the best.
1. Hire a Tax Consultant
Unquestionably, the very best thing you can do for yourself is hire a tax consultant. A tax consultant has undergone years of training and education on the laws pertaining to tax debt. As laws change from state, it’s best to search for consultants in your area, such as a Milwaukee bankruptcy attorney.
With their help, you can design a solid plan of action to reduce your debt, and ultimately eradicate it altogether.
Someone without the education of a tax consultant may accidentally run into several problems with the IRS, problems that may even worsen your situation.
2. Installment Agreement
An Installment Agreement is simply a pay plan arranged with the IRS to reduce your debt. There are several types of pay plans, and certain criteria are required to qualify for one or the other. Your tax consultant will guide you in finding the one most appropriate for your situation.
There are many benefits of an Installment Agreement, but perhaps one of the most important is simply the relief you will feel. Having a solid, clear, defined plan will allow you to focus and gain perspective. It is a road map out of the tricky maze of tax debt.
3. Offer in Compromise
Check with your consultant to see if you qualify for an offer in compromise. These allow you to settle with the IRS for less than what you owe. Again, certain eligibility requirements must be met to qualify, but that is where your consultant comes in.
One of the major benefits of an offer in compromise is that it removes any tax liens, as well as a discharge of liabilities without full payment.
An offer in compromise entails certain obligations in the form of a contractual agreement. With your consultant’s help, however, you should be able to stay on top of them long enough to benefit from the compromise.