Problems with tax debt can be extremely stressful and difficult to deal with, and the longer you wait to get tax relief, the worse the debt can become. It’s important to start seeking a tax solution as soon as you find yourself facing problems with back-tax debt. Everyone has the option to try and negotiate their debts on their own, but working with a BBB accredited debt settlement company has its advantages, particularly if the problem has already become more than the individual can handle on his or her own. Some tax solutions may include the following:
- Prevention or Release of Liens, Levies, and Garnishments: If you don’t already have a lien, levy, or wage garnishment, an accredited tax relief company can help explain how to ensure that you don’t get one. If you do already have a lien, levy, or garnishment, a debt relief agent may be able to take the necessary steps to release it.
- Installment Agreements: An installment agreement is a tax solution that allows you to make monthly payments if you’re not able to pay back your tax debt immediately due to your financial limitations.
- Currently Non-Collectable: Some people do not have the extra income to pay off their tax debt. If you need your entire payment to cover essential living expenses, your debt may be classified as non-collectable. If this is the case, the IRS may provide tax relief by suspending your payments for a period of time while you get back on your feet and provide for your family’s needs.
- Penalty Abatement: Interest and penalties can build on the amount you owe. These penalties can add up and cause an otherwise manageable debt to get out of control. Penalty Abatement programs may allow you to have your tax penalty reduced or possibly removed, provided you have a good reason (and proof) as to why you failed to file your return or pay the amount due.
There are a number of eligibility requirements needed in order to qualify for each tax solution, and while you have the option to negotiate your debts yourself, working with a BBB accredited tax relief company can be beneficial, and it can help you determine which tax relief solution is best for your situation.
Tags: tax solution, tax relief
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