The IRS is one of the federal government departments that most citizens do not enjoy dealing with. And the agency’s budget cuts in the past years have left its customer service department understaffed. This has made any attempt settling tax debt extremely difficult. But, recent Federal funding is being put into place to replenish staffing and technology for the IRS. This means that if you have an outstanding tax debt, you may be getting it resolved — for good or bad. But, be cautious of thinking that you will get treated fairly. It is still important to have knowledge on your side as you go through this process.There is no magic trick for dealing with the IRS, but here are some real ways to deal with a heavy tax burden.
Pay in Installments
The IRS will let you set up an installment plan to pay off your debts. You have several options here but the important things to remember is that you need to owe less than fifty thousand dollars and you have to have all of your tax returns filed. The minimum amount the IRS will accept is 1/72 of the tax debt owed per month.
Offer in Compromise
This is the often advertised – and much less often actually accepted – settling back taxes for “pennies on the dollar.” The reality is that there is no magic get-out-of-jail free card here. Just like any other creditor, if the IRS sees that you don’t have the ability to pay off your debt, they may be willing to negotiate a lower amount in return for a lump-sum payment of your tax debt.
Not Currently Collectible
If the IRS lists your debt as “not currently collectible”, they’re essentially giving you a deferment on repayment because you’ve shown them that you’re not currently capable of repaying your debt. The deferment will not last forever but it may give you a chance to stop the IRS from seizing property. In Georgia, Jeff Cohen is the tax attorney who can help you figure out if you can show that your debt isn’t collectible.
In some cases, it is useful to remember that tax debt is dischargeable in bankruptcy, depending on the type of personal bankruptcy you go through. Chapter 7 bankruptcy allows for the discharge of certain tax debts while Chapter 13 allows for the restructuring and eventual discharge of qualified debts.
Settling Tax Debt? Call Jeff Cohen, Attorney at Law
There’s no magic to settling IRS debt but having the right attorney – one who understands tax law and how the IRS works – can put you far ahead when it comes to trying to work with the government’s least-popular component. If you have tax problems in Atlanta, Jeff Cohen, Attorney at Law can help you work through how to solve them. Call 404-937-1414 now for a Free Phone Consultation.