IRS Tax Reduction
Reduce IRS Debt Today
The recent economy has caused tax debt for many Americans. Every year, millions of taxpayers fail to file tax returns with the Internal Revenue Service (IRS). When people fail to file annual tax returns, or they do not pay the taxes they owe, they accrue bad debt with the IRS. The IRS has the budget and resources to collect outstanding tax liabilities – this differs from other companies or organizations. Individuals should not make the assumption that the agency will not take the necessary steps to collect the taxes owed. Therefore, individuals should consult with a tax professional before the IRS begins enforced collection efforts. Our tax lawyers understand tax codes and they have the background to advise individuals on how to resolve their IRS tax issues which can include the forgiveness of tax debt.
Options Available to Individuals with IRS Tax Debt
First we will discuss some options the IRS offers individuals for payment of overdue taxes. Options include Non-Collectible Status, Offer in Compromise, and payment plans. Individuals that lack the means to make payments toward their tax debts should consider applying for Non-Collectible Status with the IRS. Obtaining Non-Collectible Status means that the IRS stops all collection activities. However, individuals must meet the needed criteria to become eligible for Non-Collectible Status. While an Offer in Compromise may also reduce debt, it is not always an option for some taxpayers. Our tax professionals have the expertise to analyze the financial standing of taxpayers to help them determine if they should attempt to reduce IRS tax debt or if they should apply for Non-Collectible Status. It is always in the best interest of taxpayers to contact tax professionals for assistance in dealing with the IRS.
Non-Collectible Status: What it Means and What it Does Not Mean
We want individuals seeking tax debt relief to understand what non-collectible status means and what it does not mean. While Non-Collectible Status may relieve IRS collection efforts, it is not a form of debt cancellation. Furthermore, Non-Collectible Status does not equal IRS debt forgiveness. When the agency determines that it will not be able to collect debt from a certain individual, then that individual may qualify for Non-Collectible Status. If that person’s financial status remains the same and the statue of limitations for collection expires (10 years), then the IRS may cancel that taxpayer’s debt. If neither of these situations have occurred, that person is still responsible for their debt. On the other hand, if a person’s financial situation changes for the better before the statute of limitations for collections expires, the agency may decide to pursue debt collections efforts. Our tax professionals have the experience to provide individuals with more information regarding Non-Collectible Status.
IRS Debt Forgiveness Through Bankruptcy
Filing for Chapter 7 or Chapter 13 bankruptcy is one way for people to obtain debt cancellation from the IRS. However, bankruptcy is a complicated process and it may become even more complicated when people also have outstanding tax liabilities. Therefore, those who are thinking about filing for either Chapter 7 or Chapter 13 bankruptcy should speak to a tax professional regarding their eligibility for IRS debt forgiveness. In addition, because there are conditions to meet, individuals should obtain legal counsel before they file a bankruptcy petition. Our tax attorneys have information available to help people decide if they should file for bankruptcy and if they meet the requirements to file before they submit any paperwork to the courts.
Advice From Our Tax Professionals
Individuals that need immediate relief from their tax debts should contact us for more information. For people who want to find more information first, or if they are simply not ready to take the step of seeking out a tax professional, we encourage them to review our website for additional information. After reviewing our site, we feel confident that those who need help with their tax debt will see our commitment to helping them settle or reduce IRS debt. Our tax attorneys specialize in tax law so we have the ability to help individuals make well-informed decisions. We want people to know that bad debt does not have to ruin their chances at financial stability. We offer debt relief and our tax professionals offer individuals the guidance they need to deal with outstanding tax liabilities. Please contact us to receive further assistance.