Settle IRS Debt with Easy Payment Options to Prevent the Mental Stress and Legal

Posted by IRS Tax Debt Solutions on September 24th, 2019

Getting a notice by the federal tax department of the United States can panic you if you owe the government money by not paying the tax. It can lead to a bad situation for you if you do not act fast to get clearance from the internal revenue service or IRS by settling the debt. It is also important to know that longer delay to settle IRS debt can worsen the consequences and you may have to face high penalty charges or legal actions. However, if you do not have wrong intentions and want to clear the debt then IRS can help you by offering valuable plans to pay the debt amount.

Installment payment plan:

As a tax defaulter, you can get a recommendation for the installment payment plan by the internal revenue service department. It is a plan like the home mortgage but the only difference is that instead of paying every month to the lender you have to pay the money to IRS. With this plan, you can easily clear the tax debt and can take off big financial burden from your shoulders. You can apply for this payment plan as it is the easiest option to prevent legal actions by the tax department and to pay the debt in easy monthly installments.

It is an agreement to settle IRS debt so you need to fulfill some requirements by the tax department to qualify for the plan. If you are regularly filing your tax returns and are in a stable financial condition to pay the amount required by the IRS every month then you can qualify for the payment plan to clear the previous tax debt. You can make a self-assessment for the debt amount by adding the late charges and interest to calculate the amount of monthly installment or can use the specialized website to enter the debt amount online to see the results for the monthly payouts.

Offer in compromise:

In order to settle the tax debt, you can also agree with the internal revenue service for an offer in compromise settlement. In this settlement program, you can convince the department to agree for receiving the reduced amount for the previous taxes in lump-sum or short-term installments. However, you have to convince the tax department that you do not have a sufficient amount to pay the full tax debt but can pay a reduced amount to settle the debt.

You can get 2 years time if you are accepted by the IRS for the offer in compromise agreement. It is mandatory for you to clear the tax in the specific time period otherwise you will have to face legal action by the federal tax department. Paying the tax regularly to the government will prevent you from the financial burden and stress that you can get due to non-payment of taxes. So, it is advised to fill the tax returns on-time and pay the correct tax amount to escape from the penalties and interest charges.