How to Settle Debt With the IRS

How to Settle IRS Debt by McNair CPA Las Vegas Tax Accountants
How to Settle IRS Debt

Owing money to the IRS creates a lot of stress and confusion. Fear of fees and penalties hang over your head until you come to an agreement and make the payments. When it comes to tax accounting, federal debt represents one of the most serious and life-effecting situations. It makes sense to seek out competent help from a top CPA tax accounting firm in Las Vegas.

IRS Debt Settlement Offers Multiple Options

Repaying the entire debt at once will make the IRS very happy. Most people with considerable amounts owed do not have the funds to take this on all at once. With the help of an accounting firm with the right knowledge and experience, you can find a way to pay back less than you initially owed. The IRS offer multiple options to do so.

  1. Set Up an Installment Plan – If you have the ability to pay the entire tax debt but not in one huge chunk, the Internal Revenue Service provides a system to offer installment payments instead. Like any other debt for a car, credit card, or mortgage, you would have monthly bills to pay a portion of the tax debt. Expert help will make it easier to get the lowest payment options possible so you can maintain your quality of life.
  2. Offer in Compromise – One of the most beneficial programs offered by the IRS includes the opportunity to settle your debt for less money than the original amount. The federal government would rather get some of their money than none at all. Negotiating a lower payment on a smaller total amount is a wise choice. The right CPA may organize a settlement for pennies on the dollar.
  3. Currently Not Collectible – In some cases, the IRS will deem your tax debt “Currently not collectible” and put off all collection activities for a certain period of time. This is generally due to not having any income or assets to cover the debt. Tax accounting professionals can help you submit an appeal to the IRS directly.
  4. Wage Garnishment – The federal government can put a levy on the money you earn and take it directly from your paycheck. This may occur if you owe a large amount and make no efforts to repay through the methods listed above. The only way to release these levies is to pay the IRS debt off or negotiate due to undue hardships you would experience with less income coming in.
  5. Bankruptcy – In both Chapter 7 and Chapter 13 bankruptcy cases, IRS tax debt can disappear just like other bills hanging over your head. Because this affects your life and credit score for many years to come, ask the advices of a CPA accounting firm Las Vegas before you take steps to file.

Every year, the IRS fails to collect a considerable amount of money owed by US citizens in federal taxes. If you have fallen into this financial trouble and owe the federal government any amount, you need professional assistance from a tax accounting specialist to find relief.