Tuesday, September 22, 2020

There is good news for people feeling the weight of tax debt.

You have several different options for handling your debt to the IRS, and you can often do so without sustaining a black mark on your credit. 


If you have less than $10,000 in outstanding tax debt, you can consider handling your debt on your own. However, if you have more that that, especially more than $25,000 it is highly recommended that you find a tax professional to help you negotiate your debt with the IRS.




A tax professional is a certified public accountant (CPA), an "enrolled agent," or a tax attorney. Call (844) 449-8473 now for free tax relief quote. These are the only tax professionals that are allowed to appear before the IRS to argue your case. An enrolled agent can practice in any state, but CPAs and attorneys can only practice in the state where they are licensed. If you have state tax debt from more than one state, find an enrolled agent to help you. Otherwise, you will be fine with a local CPA or attorney.



You did not commit fraud or tax evasion: Your debt must arise from a legitimate accident or a simple inability to pay. Your debt is at least three years old: You cannot discharge IRS debts unless they are at least three years old at the time you file your bankruptcy. Call (844) 449-8473  now for free tax relief quote. You filed a tax return for the years in which the back taxes are owed: Non-filers receive no clemency. You pass the "240-day" rule: This means that your tax debt must have been assessed at least 240 days prior to your bankruptcy, or it has not been assessed yet. If you do not meet all of the above criteria, then you will still owe the IRS 100% of what's due following a Chapter 7 bankruptcy. Tax debts can be part of a Chapter 13 bankruptcy, but you do not get to lower the total amount due - you will still owe the outstanding balance at the completion of your Chapter 13 program. In short, it is much better to pursue one of the options outlined below if you have overwhelming tax debt.


No comments:

Post a Comment