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IRS Debt Settlement And IRS Debt Relief


When you owe money to the federal government, there are various IRS debt settlement avenues open to you. However, these options are not always easy to find or understand.

For the average taxpayer, the Internal Revenue Service is perhaps the most feared department of the government.  The IRS is in charge of tax collection. When people fail to settle their tax dues, the IRS goes after them.

Tax debts may be due to non-payment of taxes including its penalties as well as improper filing of tax returns.  Tax debts are a serious problem.  The amount due can easily double up because of interests and penalties.  To make it easy for people owing money to the government to settle their dues, IRS debt settlement is available.

IRS debt settlement provides various ways on how to settle unpaid taxes.  The IRS recommends the employment of a tax relief expert for IRS debt help. He can help to address the taxpayer's tax problem and give advice on how to solve it.

IRS Debt Settlement

The most practical and convenient way is to pay the tax dues in full.  If paying the amount due is not possible, an installment agreement can be proposed and once accepted by the IRS; the taxpayer must comply with the settlement and make payments on the time indicated.  This settlement is commonly used by many taxpayers because payment is on a monthly basis. however, the IRS also accepts partial payment of the installment agreement if there is difficulty in fulfilling the terms of the original installment agreement.

IRS Debt Forgiveness

Another method is to offer to compromise.  Here, the tax payer offers the payment of an amount less than the tax due.  He must then convince the IRS that accepting the offer is the best option because he does not have enough funds to cover the total amount due.  Penalty abatement can also be requested.  Tax dues usually shoot up because of penalties.  This method removes all penalty charges of the total tax due.

The IRS has the option to declare the taxpayer currently uncollectible.  When this happens, the IRS will cease all collection action against the taxpayer and review his financial condition.

IRS Debt Relief And The Statute of Limitations

Other taxpayers allow the statute of limitations to expire.  The IRS has a period of ten years to collect beginning on the date of original assessment.  Once the ten-year period lapses, the IRS cannot collect anymore.   One significant factor to consider when applying for debt settlement is for the taxpayer to show that he acknowledges the debt but his current financial situation hinders him to settle the amount due.  If the IRS approves of the settlement plan, taxpayers must meet the terms of the agreement.

Taxes are man's obligation to the government.  It is its lifeblood.  Failure to pay ones taxes is similar to robbing the government of its livelihood.  Without taxes, no improvements can be made.  The government cannot continue its programs that require money.

The IRS understands that due to financial hardship, people fail to comply with their obligation.  That is why IRS debt settlement is available for taxpayers to utilize.   However, taxpayers should not take advantage of these settlements in order to escape their responsibility.   It is still wise to pay taxes whenever it is due to avoid any IRS problem.

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