Anchorage is a nice city in Alaska where wildlife thrives, but that is not the only thing that Anchorage is known for. It is the most populous city of Alaska, with about 62% of citizens of states residing in Anchorage. Anchorage is also known as the crossroads of International flights as it serves as a major refueling stop for flights to New York, Tokyo, and Frankfurt.
Being the major city of the state, Anchorage has the highest tax rates in Alaska. Its 1.32% property tax is higher than the national average. High taxes mean that the taxpayers of the state often find themselves lagging in tax payments, which piles up back taxes, and we all know that how back taxes or tax debt can make the financial life miserable for anyone. But don’t worry yet, if you find yourself in a similar situation as we may have the right solution for you.
How to Settle Tax Debt for Less in Anchorage, AK?
The IRS is a powerful institution, and it enforces its authorities to quite some extent, meaning you don’t have many options on the table if you owe the IRS some money. The saner would be to comply with their rules and regulations and find a solution under tax laws. Anything and everything is done outside the law would mean that you are trying to evade tax payment, and you don’t want to do that as it is a federal criminal offense.
So the question is, what can you, or every other citizen, do to settle your taxes for less without breaking any law or manipulating the system. The solution we have for this complex problem of yours may surprise you; you go to the IRS to resolve your tax debt. You read it, and then write. If a law-abiding taxpayer is not able to make tax payments on time simply because he doesn’t have money, then the IRS can settle for a lesser amount that taxpayers can easily pay without going bankrupt.
- IRS Fresh Start Program: This program was started in 2011 to offer help to individuals and small businesses affected by the recession. Later, the IRS expanded this program to allow more taxpayers to settle their tax debt for less. Under this program, the already in practice Offer in Compromise option has been made more flexible to facilitate financially struggling individuals and small businesses.
You might find this confusing as to why the IRS would settle for a lesser amount. To understand this, you have to consider the IRS as a revenue-generating entity, and taxpayers act as their customers. Now, if a customer cannot pay tax or, in other words, wouldn’t be able to continue paying taxes, what should the IRS do? They simply would compromise and settle for whatever amount the taxpayer can pay and let him continue contributing to the system.
- Offer in Compromise: As we discussed in the previous section, an Offer in compromise allows taxpayers to settle their tax debt as a consolidated amount for a payment that they can easily pay without hurting their financial life.
So if you are worried about piling tax debt, why don’t you contact an IRS representative and tell them you have nothing to hide. Once they are certain about your financial position, they will accept your Offer in Compromise.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.