- Image by Getty Images via Daylife
Falling into tax debt isn’t a death knell for you. You can get out of it and you’ve probably seen commercials on TV about how “I had $124,000 in back taxes owed reduced down to $4,000″. Those kind of things do happen though probably not as frequently (and definitely not as easily) as the commercial would have you believe.
There are a number of reasons why you might have the debt piling up:
- Unexpected and heavy medial bills
- job loss or death in the family
- ignoring, not taking seriously the nasty gram letters the IRS sends you
Regardless of why you find yourself in this situation you have options.
- pay it off with a lump sum
- setup an installment payment plan with IRS (they do this quite often)
- negotiate to reduce/eliminate penalties and interest
- offer in compromise – another way of saying debt negotiation to reduce overall balance owed
- uncollectable – present your case as to why your financial crisis is so severe you can’t pay at all and they should forgive the entire balance of your debt (tough to get approved)
Get the tax help you need here.
Leave your comments and tax debt questions below in the comments section.
Follow my real-time tax Twitter updates.
