Thursday, 12 July 2012

Does Bankruptcy Erase Tax Debt

If you're struggling to make ends meet and dodging bill collectors, the last thing you want to worry about is a visit from the tax man looking for back taxes. Although bankruptcy can be used at times to discharge personal taxes, this tactic is not always completely effective. Other types of taxes beyond income taxes are exempt from discharge in bankruptcy, so a tax debt may not be wiped out by bankruptcy proceedings.

- Automatic Stay

Once an individual or corporate entity files for bankruptcy, the court issues an automatic stay of debt. This order temporarily prevents all creditors, including the Internal Revenue Service, from collecting debts during bankruptcy proceedings. The IRS may petition the court to lift the stay to collect back taxes, although it will generally need to prove the taxpayer engaged in fraudulent activity to remove the stay. During the time the automatic stay is in effect, the IRS will not be able to attempt to collect taxes, regardless of the type of tax debt owed.

- Requirements for Discharge

Back taxes aren't immediately erased when a taxpayer files bankruptcy. To qualify for discharge, the tax debt must be at least three years old at the time bankruptcy is filed, the taxpayer must have filed a return at least two years before filing and the taxpayer cannot have been shown to have made a willful attempt to evade taxes or defraud the IRS. Additionally, only income tax debts may be discharged by bankruptcy. Payroll taxes and fraud penalties may not be discharged by bankruptcy proceedings.

- Chapter 7

In Chapter 7 bankruptcy, an individual or corporation's assets are liquidated by a trustee and the proceeds are used to pay off creditors. If the IRS filed a tax lien against a taxpayer before the bankruptcy filing, the tax debt will not be discharged in filing. If the taxpayer emerges from Chapter 7 with property remaining, the lien is reduced to match the value of property. For example, if the IRS filed a $15,000 tax lien against a taxpayer, and the taxpayer emerges from Chapter 7 with $8,000 in assets, the lien amount is adjusted to $8,000.

- Chapter 13

Taxpayers who enter Chapter 13 bankruptcy renegotiate their debt amount with their creditors in the process. In these proceedings, debt amounts, including property taxes, are reduced as the court develops a payment plan to help a debtor emerge from bankruptcy. In these cases, if a judge decides the taxpayer only has the ability to pay $8,000 on $15,000 of back taxes, the amount will be adjusted as part of the payment plan developed as part of Chapter 13 filings. As with Chapter 7, tax liens aren't discharged by Chapter 13 protections.

- Chapter 11

Although it's rarely used by individuals and favored by corporations, taxpayers who file Chapter 11 receive a six-year grace period to repay tax debt. During this period, interest on the unpaid balance accrues.

Reference: www.uscourts.gov

Bankruptcy and Tax Debt

Taxes can be a tricky subject and many people simply ignore them most of the year and only pay attention come tax time. Although no one sets out to owe the IRS money, it does happen to many people. Tax debts are particularly difficult to manage, especially if you are experiencing financial trouble or are considering filing for bankruptcy.

While most people assume tax debts are not dischargeable in bankruptcy, the fact is that some are eligible for bankruptcy help. The general rule of thumb is that payroll taxes, trust fund taxes, tax penalty fees, and taxes that are accumulated due to fraud are not eligible for bankruptcy. However, income taxes can be managed in bankruptcy in most cases.

Qualification Standards

There are several rules and conditions that apply when considering whether a debt will qualify for bankruptcy discharge. The specific criteria set by the bankruptcy code defines which debts will be eligible. First, the taxes must be tied to a current and filed tax return. Any tax debts that have not been filed with the IRS will not qualify for discharge. The taxes must have been assessed by the IRS at least 240 days before the bankruptcy filing. Next, the debts must be at least three years old. Finally, the taxes must not be considered to be fraudulent or have any attempt to evade payment.

Bankruptcy Cases

While tax debts can be discharged under either a Chapter 7 or Chapter 13 case, a debtor's income will better determine which case they qualify to file. Whenever possible, debtor's are encouraged to repay their debts under structured payment plan through Chapter 13. However, if a debtor cannot afford to repay their total tax debt liability, they may be able to have some or all of the debts eliminated through Chapter 7.

Other Options

Managing tax debts outside of bankruptcy is highly encouraged. Luckily, the IRS offers taxpayers two ways to resolve their tax debts directly. The IRS installment plan allows for the taxpayer to repay their liabilities over a series of small increments. Generally, this plan breaks down payments over the course of two to three years. Requesting an installment plan is fairly simple and most people are pleasantly surprised to learn the IRS is willing to negotiate. A tax debt settlement option is also available for those who cannot afford to repay in full. An Offer In Compromise is a proposed settlement that is presented to the IRS, in which they agree to accept less than the full amount owed. This program is harder to come by and is generally reserved for those with serious financial hardships.

For more information please visit www.leebankruptcy.com. The Lee Law Firm aims to help local residents resolve their debt issues and achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment, prevent foreclosures and repossessions, and stop calls from creditors. The Lee Law Firm bankruptcy lawyer in Fort Worth have many years of experience in all aspects of Chapter 7 and Chapter 13 Bankruptcy.

Wednesday, 11 July 2012

Does Bankruptcy Cover Tax Debt

Does Bankruptcy Cover Tax Debt ?

The Internal Revenue Service is the federal government's taxing authority. The IRS assesses, collects, monitors and audits every United States resident's federal income taxes. When Congress enacted the Bankruptcy Code, it made sure to protect the government by prohibiting debtors from getting rid of their income tax debt with some exceptions.

Bankruptcy Discharge

Bankruptcy discharges an individual's liability to repay debts. A Chapter 7 case usually results in a discharge without the debtor paying anything back; a Chapter 13 case requires repayment of some debts and partial repayment of others. The discharge applies only to unsecured debts, which are debts that are not backed by property. Credit cards and medical bills are unsecured debts. Some unsecured debts, however, are nondischargeable, including certain income taxes.

Nondischargeable Debts

Section 523 of the Bankruptcy Code lists a variety of debts that you cannot discharge. The list includes child support, alimony, student loans and most income taxes. In a Chapter 7 case, nondischargeable debts survive the bankruptcy and you must continue to repay them after the case is over. In a Chapter 13 case, you must pay most nondischargeable debts in full unless the court approves special arrangements.

Nondischargeable Income Taxes

If you owe the IRS for income taxes that the IRS assessed within the past three years, you cannot discharge the taxes. You also cannot discharge income taxes that the IRS assessed on a late-filed tax return. For example, if you filed your 2003 tax return in 2007, any taxes are nondischargeable, no matter when you file bankruptcy. Similarly, if you filed your 2006 tax return on time and the IRS assessed taxes in 2007, the taxes are nondischargeable through 2010. If you filed your 2006 tax return on time but the IRS did not assess taxes until 2009, the taxes are nondischargeable through 2012. A Chapter 7 discharge will not get rid of these taxes, and you must pay these taxes in full with interest in a Chapter 13.

Dischargeable Income Taxes

You can discharge certain federal income taxes. If the IRS assessed your taxes more than three years ago and you filed your tax return on time, you can discharge the taxes in Chapter 7 and you can treat the taxes as general unsecured debts in Chapter 13. For example, if you filed your 2001 tax return on time and the IRS assessed taxes in 2002, you can discharge those taxes in a 2011 bankruptcy.

References:
- www.irs.gov
- www.uscourts.gov

Tax Debt Bankruptcy

Discharging Back Tax Debt In Bankruptcy

If you are filing for bankruptcy, and you owe the IRS back taxes, you may be eligible to have the tax debt discharged. Many people believe that a bankruptcy filing does not absolve the tax debt owed, and the IRS does not advertise this, but many IRS taxes, penalties and accrued interest do qualify for complete discharge in bankruptcy.

For those who do qualify, there are three general rules that must be met:

Rule 1: The tax liability must be three years old or older from the "due date" of the return, including extensions.

Rule 2: The tax returns themselves had to have been filed at least 24 months before the petition for bankruptcy date.

Rule 3: 240 days must pass from the date of assessment.

Not all people will qualify for this, and it is recommended that you seek the advice of a tax professional who can study your case and help determine if your IRS debt can be discharged. Not all bankruptcy attorneys understand whether the consumer's income tax liabilities qualify and this is where the advise of a tax expert is key. Expert representation can greatly improve your chances of having your IRS taxes, penalties and interest successfully discharged. In addition to this, Congress has enacted a new Consumer Bankruptcy law (in 2005) that included many changes. A tax expert will be up-to-date on these changes, some of which affect the ability to discharge income taxes.

Even if you do not qualify for a complete discharge of your IRS tax debt, there may be other viable options for reducing the tax obligation such as the IRS Offer in Compromise program or the IRS Installment Agreement.

The Offer in Compromise (OIC) program was established by Congress to help taxpayers get a fresh start, if they qualify. In qualifying cases, when the Offer in Compromise is accepted by the IRS, all federal tax liens can be released and the negotiated settlement amount is paid. It should be noted that the Offer in Compromise program is a privilege and is a very subjective process where the IRS has the final word. It can be a very long and complicated process too.

The IRS Installment Agreement is where the expert tax representation negotiates with the IRS a payment plan to pay back taxes. To qualify for such a plan, the consumer must have filed all tax returns, be willing to disclose assets owned including cash and bank accounts, must not have the capacity to borrow the amount owed to the IRS from other sources (a second mortgage on the home, for example), must not have adequate equity in a retirement account which can be borrowed or liquidated and must complete a personal financial statement.

For those consumers who are facing bankruptcy, or just struggling to pay off back tax debt, the IRS has provided some good options. For more information you can visit www.taxresolution.com. Seeking expert tax help is the best resource for finding which one works best for a consumer's situation.

Debt Settlement Income Tax

FAQ About Debt Settlement Taxation

New regulations about debt settlement taxation has triggered off several questions about debt settlement and income taxes. This article tries to cover the most important aspects of the same within its limited scope. Let us start off by explaining why settlement is taxable. This is because of the fact that once you go for settlement, you need to pay a certain amount of money to the creditor. This is the money that you save and it is considered as your income. Now, income being taxable, settlement becomes taxable. Hence, you need to pay taxes.

Question: Who informs the IRS about the settlement deal?

Answer: After the new regulations were implemented, the creditors are required to inform debt settlement deals to the IRS. The creditors issue 1099-C to the IRS which reports the details of the settlement deals taking place.

Question: What is 1099-C and what does IRS do with it?

Answer: 1099-C is the details of the debt settlement deals that the creditors agree to. It includes the information like customer name, forgiven debt etc. After IRS receives this from the creditor, it will forward the same to the debtor. The debtor will then have to account for the same in the IT return. If the debtor fails to do so, the IRS will file Federal Tax Lien and take steps against the debtor in form of penalties and interests.

Question: Can settlement taxation be avoided?

Answer: Yes, it can be avoided under various situations. In case the debtor can prove insolvency during settlement, it becomes non-taxable. The forgiven debt is non-taxable if the debtors indebtedness is due to any loss in a real property business or if the forgiveness was an outcome of a bankruptcy proceeding. Also, if the forgiveness is considered as a gift, the debt settlement taxation can be avoided.

Question: How to report insolvency to the IRS?

Answer: By filling the form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness issued by IRS along with tax return. The debtor can also alternately attach a letter with the detailed calculation of the total debts and the total assets during settlement along with the tax return.

Question: Is there any specific amount of forgiven debt that is taxable or any amount forgiven is taxable?

Answer: If the forgiven debt amount is greater than $600, it becomes taxable!

For consumers with over $10k in unsecured debt, debt settlement can be a legitimate way to eliminate a significant amount of that. To find a legitimate company it would be wise to visit a free debt relief network. They will provide free help and point consumers in the right direction whether it is debt settlement or another option.

Tuesday, 10 July 2012

Debt Settlement and Tax Implications

If you are one of many Americans whose debt burden has grown unmanageable, you understand the tremendous stress that this situation causes. You know that in addition to weighing down your mind it is weighing down your credit score which is going to make credit issues even more difficult to resolve. Many debtors' situation becomes so grave they must file for bankruptcy or just give up and default on their bills, totally destroying their credit worthiness.

Rather than these options, that can affect credit ratings for years, you may consider some tactics that have gained considerable popularity amount those struggling to get out from under the load: consolidating debts or making debt settlement offers. The two options are extremely different and you must research them thoroughly to determine which would best suit your situation.

Advantages of Using Debt Settlement Options

When a debtor offers to settle a debt, they apply to the creditor to immediately forgive all or part of the debt in consideration of the fact that you are totally unable to repay any or all of it. If you could unload all or part of a debt, that might be the one little bit of help needed to get you by so you can make all your payments. You can start paying down other debts, and each month your debt load and monthly payments will become a little more manageable. That dark cloud hanging over you will start to lift.

Dangers of Debt Settlement

The debt settlement offer, if accepted by the creditor, is going to be noted in your credit history, and may impact the credit score. All credit bureaus will have the information which will be available to any organization that checks credit scores, which nowadays can include potential employers. It will also reduce your credit score for awhile, although not as severely as a bankruptcy or defaulting. You can eventually overcome the effect by handling your credit carefully.

Another consideration that you must carefully consider if going for the settlement option is the debt settlement tax implications. If your creditor forgives over a certain amount of debt (usually around $600) the Internal Revenue Service treats the entire amount forgiven as a form of income that you must report on your tax return. Depending on your total taxable income, you may incur an unpleasant tax liability on the debt amount forgiven. Depending on the amount of the debt and the amount of tax, the benefits may outweigh the costs; to know for sure you need to understand how your individual tax liability may change.

When researching your debt resolution options you may encounter companies that, for a fee, will handle your requests for compromise settlements to your creditors. These companies charge a fee, and the fees may be more than you can really afford for the amount of benefit you will receive. Be sure you understand the ramifications of your decisions before making your moves. Before any final decision about using the settlement strategy, you should investigate consolidating your debts.

For more information please visit www.2009taxes.org. Good luck!

Tax Debt Settlement

Each individual is evenly responsible for all interest, penalties and tax debt settlement when a joint tax return is filed for that particular year. Regardless if the couple is divorced and the divorce decree states that only one of them is liable for any taxes owed, the states or IRS has the legal right to go after both individuals or just one for the tax amount that is owed.

For tax debt settlement, the Innocent Spouse Relief was developed by the IRS as they realized that there may be certain situations that would be unreasonable to pursue both spouses accountable for the tax debt that was brought into existence. Typically, there are three forms of spouse relief that would enable one spouse not to be liable to pay the tax. Even if they end up not qualifying for one, they may be eligible for another.

# The first form is the original Innocent Spouse Relief:

This classic type is the newer version which has been divided up between this section and the other two. This particular form relieves a spouse's full responsibility for paying any of the understatement of taxes that are owed. However, they must meet certain basis to qualify.

# The next form is Separation of Liability:

This form of spouse relief allocates the tax between both individuals as if they filed separate tax returns. The amount is assigned established by the amount each is liable for.

# The third form is Equitable Relief:

This form of spouse relief was designed to protect individuals that perhaps don't qualify for the first two types of spouse relief but would still seem unfair to make them liable for the tax that is owed. Different than the other two forms, Equitable Relief enables a person to put into use if they have either underpaid tax or understated tax.

# Requirements for Requesting Innocent Spouse Relief:

First and foremost, it is extremely important to request innocent spouse relief correctly the first time around because if it is denied the likelihood of applying again for those years in question is unlikely to be accepted. The IRS has certain forms that are required and they strongly recommend that a letter explaining your situation in great detail accompanies those forms to make a more informed determination. The filing of IRS innocent spouse relief can take up much of your time and is monotonous, so do it right and be sure you can meet the requirements for one of the relief forms.

If you need some help with filing spouse relief forms, you can always seek the advice from an experienced tax relief attorney.

For more information like this and other related tax issues, visit www.irstaxreliefattorneys.net website about IRS Tax Relief. They can prevent IRS bank & wage levies, prevent or lift tax liens, stop wage garnishment and will continually strive to get you the best possible settlement.

Monday, 9 July 2012

IRS Debt Tax Attorney

It may seem it's not necessary to hire an IRS tax attorney for your tax debt in the beginning; however it will not take very long to discover that professional guidance is absolutely essential. Whatever associated with the Internal Revenue Service and earlier due taxes can turn out to be extremely difficult immediately. In truth, there are plenty of folks that failed to succeed in an acceptable arrangement with the Internal Revenue Service simply because they failed to comprehend the principles, regulations, polices and processes.

An IRS debt tax attorney is aware of and comprehends the present Internal Revenue Service taxation guidelines. Yet sometimes over and above that, an attorney devoted to tax negotiations on terms remains present on taxation law alterations. This will be significant whenever attempting to handle the Internal Revenue Service.

There is certainly one more reason why you will need an IRS debt tax attorney any time submitting an Offer in Compromise. The bargain procedure is extremely long-drawn-out and also demands recurrent verbal exchanges with the Internal Revenue Service. Most taxpayers are working middle-class and are unable to go ahead and take necessary period of time off from their work to meet up with the IRS over and over again. On top of that, keeping up-to-date on laws and regulations with regard to taxation is really a career by itself.

When making use of tax attorneys, you can reconcile for a smaller amount. If you take advantage of an experienced tax attorney, you will have the ability to reconcile your circumstance for a lesser amount compared to what you could should you be representing your own self. A fantastic tax attorney may additionally be capable of getting rid of all the so-called penalties and charges that have been applied to you. In the event you have to deal with the IRS on your own, on the other hand, there is no doubt that they're going to mandate each and every cent, as well as all of the penalties and fees. And they will continue evaluating those charges and penalties just up until you compensate every tad.

You might not figure out how to make a deal with the IRS since the auditors tend to be daunting. As federal government representatives, they have perhaps an astonishing level of influence over both you and your finances, and these people are not reluctant to reap the benefits of that capability. An IRS representative does not possess that identical capability over a tax attorney, which means that a tax attorney can discuss in an infinitely more relaxed, logical, and indifferent way. Moreover, IRS agents do not possess any difficulty getting in touch with you frequently and authoring you correspondence. A tax attorney will take care of those telephone calls and correspondence for you, permitting you to manage the remainder of the matters you need to bother about.

You can visit www.instanttaxsolutions.com for more information.

Tax Debt Attorney

Tax Debt Attorney For the Defaulters

Tax debt attorneys are like saviors for the defaulters and creditors. Those who have already hired one know how helpful they can be to deal with such liabilities. But those who are still looking for one should first understand the role that these lawyers play. These kinds of legal representatives help you to avoid a number of worst circumstances that may arise due to not paying of your levies on time. With such situations you can also land up in court processing. It is your attorney who can help you to get rid of the problems by rectifying the tax debt.

However, it is not only a tax debt attorney that you need; your legal representative must be experienced and have expertise in this field. Otherwise you may end up losing the court case. It is the duty of these lawyers to tell you about your rights and other benefits that you can enjoy.

There are several reasons that may lead to such liabilities. In most of the cases, people do not realize until they get official notice from the IRS (Internal Revenue Service). These types of liabilities are often created when one faces financial crises due to unemployment, losing jobs, alimony or divorce. Usually, they keep on accumulating and thus increase the burden of your debt. The IRS usually charges higher penalties that you have to pay apart from the accumulated taxes.

The primary task of such an attorney is to get some of your dues waived off. Though you will have to pay the dues, there are chances that IRS will offer a reduced amount. As a matter of fact, such heavy penalties are levied only to discourage the defaulters from continuing the practice. An expert legal representative will negotiate with the IRS official and will help you to get relief from this burden. They will also plan payment schedules that suit your budget. In addition, it is the responsibility of your lawyer to locate all those possibilities that may work in your favor during the IRS proceeding.

These days, you can conveniently find such lawyers online. There are many firms that offer this type of services. They also provide the area of their expertise according to which you can appoint them. Moreover, there are certain sites and legal directories that list the contact information of the tax debt attorneys. However, always remember to verify the credentials and expertise of the firms as well as of the lawyers before opting for one. Also, compare the services and fees of several different firms and go for one that offers the best deal.

For more information please visit www.guidancetaxrelief.com that offers IRS tax help from highly qualified and experienced tax debt attorneys.

Help With Tax Debt

Suggestions and Tips For Tax Debt

Getting "out of debt" is a common norm advised by many financial advisors these days. Getting out of "tax debt" can be very difficult since you deal with the IRS, and not common lenders. The IRS has powers to "garnish" your wages and create "havoc" as far as your finances are concerned. Working out an effective plan to pay off your IRS tax debt ought to be a priority for any individual owning IRS taxes and dues. Many companies offer tax debt solutions and also provide free IRS tax help to help you deal with your tax payment.

Tips For Paying Off IRS Tax Debt
  • Do Not Try to Hide - Back taxes" occur when existing taxes are not redeemed in time, and eventually add on to the "back lot". IRS dues are not easily waived, so it's likely you'll be paying them eventually. It's difficult to avail IRS debt help. At times tax debtors think by "hiding" the back lot, it would be easier to cater paying current dues, since IRS might not be aware of previous dues. This is a misconception - the IRS maintains detailed records for each and every American citizen, and has total knowledge about any tax defaulter's background and outstanding tax dues. So the sooner you face the situation, and decide upon a plan to pay your dues, the quicker it is in finding a solution to solve the problem.
  • Ask for Help - Many companies and financial institutions specialize in tax debts, back taxes, and tax problems in general. These companies employ experts who know when to engage with the IRS, whom to contact, and how to arbitrate with the IRS. So if find it difficult to deal with the IRS on your own, it's advisable to seek professional help and work out a plan to settle your tax debt.
  • Offer a Compromise - The IRS offers waivers which can help to lower your net payable tax debt. Generally, waivers are given if the debtor has a confirmed financial problem and is not likely to redeem the taxes, even in the near future. If you can convince IRS it's going to be difficult and quite impossible to clear out the back taxes, the IRS officials will verify your earning potential and provide tax relief by waiving some or all back-taxes. In some cases tax debtors have also benefited from an elimination of back taxes as well as reductions in their existing payable taxes.
  • Work it Out - You can work out a payment plan with the IRS if you have a low paying job, or have financial commitments in the form of medical expenses, and you're unable to pay your tax dues "at a go". In such cases, you can avail facilities to pay your taxes in short term installments, or small lump sum payments over a period of time.
  • Call a Time Out - At times taxpayers don't qualify for payment plans to pay off their tax debt. If this happens, it's possible to request the IRS to put your file into "Currently not collectible" status. This indicates that the IRS won't take any further actions to collect your tax dues for some time, usually for a period of one year or less.
Many online companies offer tax debt help, and availing the facilities offered by them can greatly simplify your life. Majority of such companies also offer free consultations, and help you with many tax related issues such as free tax filing help to redeem your IRS dues. All you need to do is search for "free online tax help" on the net, and you'll end up with many companies offering the facilities. If you're sure about your IRS tax repayment plan, and you desire to get some advice related to any tax issues, it's recommended you search for "online IRS help line" and avail the help.

Sunday, 8 July 2012

IRS Tax Debt Settlement Help

Many people think that IRS debt settlement is a simple process that takes no time and effort. This is far from the case. Not only does it take time to decide if IRS debt settlement is right for you, it is a long process once you get moving. And remember, the IRS does not have to accept your offer to settle. They can easily reject your claim, which then puts you back at square one and looking for another payment option.

One of the first things you should know is that there is more than one type of IRS debt settlement. It is a common misconception that all IRS debt settlement plans are the same. There are quite a few ways that you can do this.

Here are several types of IRS debt settlement:

1. Office in compromise: This is a process in which you offer to pay the IRS less than what you owe. Have you ever heard a tax settlement company say that the can settle your debt for pennies on the dollar? An offer in compromise is what they are referring to.

2. Uncollectible status: The IRS can review your account and finances to determine that you are currently uncollectible. When this happens they will suspend the collection process. By combining this with the statute of limitations you may be able to avoid paying your entire debt.

3. Statute of limitations: From the date of assessment the IRS has 10 years to collect the money you owe. After this time goes by the IRS can no longer collect from you.

4. Penalty abatement: It is common for people who owe taxes to have a lot of money in penalties added to their already large debt. If you can prove that you cannot pay, you may be able to qualify for penalty abatement which will remove some or all of these charges.

If you are unsure of IRS debt settlement and which option(s) to take advantage of, speak with a tax professional. Need help with a tax settlement? You can visit www.backtaxeshelp.com to know what to look for in a tax settlement company. Find more information on how to settle and get help with your settlement from tax professionals.

IRS Tax Debt Help

Know the Steps to Get Out From Under Your Debt

Sound Familiar?

Matt is an average person who works hard to pay his bills and support his family. Last year he was laid off and was not able to pay the taxes he owed. Now, a year later, he knows that he owes back taxes with fees and penalties. He is not sure if he will ever be able to pay off his existing tax debt.

Choose the Right Help! If you're like Matt and have a large amount of tax debt waiting to be paid, it's time to find help. You need to get rid of your tax problems quickly. Make the right choice; the following information should make it easier for you to figure out what type of tax debt help you need.

1. Offer in Compromise

This IRS program allows taxpayers to compromise with them about how much you can pay them for the debt owed. It's a very long and tedious process and the qualifications are difficult to meet. However, if you meet the requirements, it can be a very rewarding program. Consult with a professional to see if you qualify, and always get a second opinion to make sure you're making the best decision for your case.

2. Installment Agreement

In this program, the IRS sets up monthly payments for you to pay off your existing debt. This is much like paying your credit card debt, except that the IRS gets to decide how much you pay per month. While you do have a bit of a say in how much you can afford, it is ultimately decided by the IRS and can be a heck of a lot more than you think it should be.

3. Penalty Abatement

When you have tax debt, the IRS immediately starts adding interest and penalties. This means that not only do you owe the original debt, but also the newer fees. However, you do have some recourse if you can give the IRS reason to believe it was impossible for you to pay everything that you owe. After filling out the required paperwork, you could potentially reduce your tax debt up to 30%, making it much easier to pay off the rest.

Help is On the Way! Regardless of your situation, there is help to fix your tax debt problems. Believe me; nothing is scarier for an IRS-Hitman than a tax professional that knows what he's doing. Get the right help today, and make sure that you don't have to spend the rest of your life worrying about your tax issue.

Now you have the smoking gun...Use it!

Please visit www.irs-hitman.blogspot.com or www.taxdefensenetwork.com for more information.

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