Taxation is quite a technical subject.
Anyone who doesn’t have an exquisite understanding and orientation with the tax laws cannot enjoy being a taxpayer at all. We are under the continuous monitoring of federal and state-level taxing authorities. At times – the situation starts getting troublesome for us. It all happens as we don’t deal with these things appropriately. A growing tax debt is one of the most troubling aspects of the entire taxation system. Don’t consider it something specific with those who are earning less. In fact, it remains one of the biggest issues for the businesses and entrepreneurs as well. Today, we have decided to talk about the best three options available for individuals who are facing difficulties on this front. We are sure – this article is going to bring a lot of relief for many of our readers.
Prerequisite – You Need an IRS Attorney!
Yes! It is one of the basics, and we want you to know more before proceeding with the rest of things. IRS attorney, tax attorney or tax lawyer – all of these terms are interchangeable. By using these words, we are used to mentioning experts who come with a qualification, experience, and practice to assist us with our complicated tax related issues. Here let us inform you, stuff like the preparation of returns and other routine things can easily be handled by professionals like Certified Public Accountants. However, when it comes to a growing tax debt, audits and appeals you cannot rely on less experienced experts. So, the first thing every endangered taxpayer should think about is the hiring of a real IRS attorney.
The methods and options we are going to discuss below apply to those taxpayers only who are maintaining a good relationship with the IRS. One of the few ways of keeping yourself in the proper book of the IRS is the filing of returns. Most of the tax debt settlement options are not offered to those who are not regular with the submission of their annual tax returns. In addition to this, please keep in mind we are talking about the federal taxes and the IRS only. State level taxes are different, and these methods don’t apply there.
Way Number One
Taxpayers whose owes $10,000 or more can think about proceeding with this option. Perhaps, this is the best possible method of settling the IRS debt in most cases. Further classifications and more choices are available for those who owe more. As of today, a taxpayer can opt to go with a plan that can be stretched up to 72 months. Let us tell you – the taxpayer also pays some additional amount in the form of interest and surcharge. Remember – some penalties are also levied, and they depend upon the total number of installments. In short, it is something like a personal loan.
Way Number Two – Not Currently Collectable
Here comes another brilliant option. Going with “currently not collectible” is something that can bring tax immunity for a particular period. However, it is not easy to insist the IRS about your inability of settling your debts with them. Still, a good tax attorney is someone who can help. They understand the IRS, and therefore they can represent your case in quite a steady tone before them. The exempt granted as a result of a successful application covers everything. You won’t fear anything like liens and salary garnishments. So this one is an excellent choice for those who are facing financial challenges and extraordinary circumstances. We have plenty of good tax lawyers who are operating with tremendous results.
Way Number Three – Innocent Spouse Relief
Innocent spouse relief in our view is quite an effective method of dealing with your tax debts. However, it is a very limited one. Anyone who files his or returns separately cannot take advantage of this provisions. The innocent spouse relief can be applied by the filing of Form 8857. This, in fact, is a way of informing the IRS that the tax debt, penalties and other fines you are owing are not justifiable. Most of the taxpayer do take this option for separating their tax matters from their former spouses. There are several kinds of technicalities involved and please don’t consider it something easy or straightforward. It is a question of the fact that the IRS is not supposed to lose even a single penny.
Well, everyone who is seeking assistance for the settlement of tax debt should call the TaxLawLosAngeles.Com as their experts are available for FREE online consultation!