Owing debt to the IRS could be a soul-crushing experience. If there is one thing in life that you cannot afford to ignore, it is the IRS tax debt. The taxman will never let any debt go unnoticed. A number of individuals and businesses face IRS tax debt issues in San Pedro, CA. So, what to do in such circumstances? Continue reading to understand your best course of action in such a scenario.
The Fact of the matter is that the amount you owe to the federal tax authority is often irrelevant. Owing $5,000 could be equivalent to $500,000 if someone has no resources to pay the money. The best thing you can do in such a situation is to start planning at the earliest.
Let’s see a number of things you need to do to get out of the situation.
How to Get Out Of The IRS Tax Debt Issues in San Pedro, CA?
File Your Returns
Many People avoid filing returns if they already owe to the IRS. Don’t commit this mistake. Remain as honest as possible to the best of your knowledge.
File returns, and portray your true financial situation in the returns.
Take a Bank Loan
Depending upon your circumstances, you may or may not be able to avail this option. If it is possible, try taking a loan to pay off the tax liability. Similarly, you may be able to take a loan from a qualified pension plan.
Look for a number of loan options to settle this liability as soon as possible.
Don’t Put it in the Backburner
Many people simply choose to avoid the situation. This could be disastrous for you. Hence, you need to plan sooner than later.
Remember that the IRS will continue to impose penalty and interest on later payments.
At the same time, you may be hurting your credit rating further.
Hire a Tax Relief Attorney
Depending upon your situation, you may be eligible for various tax relief options. So, consult a reliable tax relief attorney to know your options.
A professional tax attorney might be able to reduce your liability. Similarly, other options are available as well (See below).
If you think you cannot pay the owed amount immediately, you may consider going for the installments plan. The IRS often allows debtors to pay in the form of several installments.
Again, certain penalties and interest may be applicable. But you get the opportunity to settle your IRS debt from future income.
Offer in Compromise
An Offer in Compromise (OIC) remains a very charming option for tax debtors. However, the IRS is not very receptive to this option. It allows OIC to only a handful of individuals.
It also depends on how well your tax attorney is able to build up your case. If allowed, you may be able to settle your debt for less than the original amount. However, you need to pay the amount in the near future.
You won’t be able to get installments on a reduced liability.
Remember that failure to get in terms with the IRS could have potential consequences. The IRS could put you in an automated collection and may also take your refunds. Similarly, the IRS may also go for publicly filing a federal tax lien on your property in some cases.
You may not be able to travel abroad and the federal officers may keep on showing on your door.
All this while you continue to accumulate tax penalties and interest on the outstanding amount. Hence, it is of utmost importance that you try to find a solution to this issue sooner than later.
USA Tax Settlement strives to help taxpayers get out from under their IRS tax debt. Unlike other so called Best Tax Resolution Companies in San Pedro, CA that charge outrageous fees and don’t deliver on their promises. USA Tax Settlement employs tax professionals, tax attorneys and IRS enrolled agents so we can provide IRS Tax Debt help in San Pedro, CA. Stop stressing over your tax debt and let our IRS Tax experts in San Pedro, CA settle your IRS tax debt for a fraction of a cost. USA Tax Settlement can help with various IRS Tax Relief Programs or Tax Debt Forgiveness Programs. If you need IRS Tax Relief in San Pedro, CA then call USA Tax Settlement today for a Free Consultation. Remember, having one of the Best Tax Relief companies in San Pedro, CA on your side is your best first step.
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.