TAX DEBT

There are five and only five strategies for getting out of debt.

1. Installment Agreement: a monthly payment plan for paying off the IRS. 

2. Partial Payment Installment Agreement: a fairly new debt management program where you have a long term payment plan to pay off the IRS at a reduced dollar amount. 

3. Offer In Compromise: a program where you can settle your tax debts for less than what you owe. Requires making a lump sum or short term payment plan to pay off the IRS at a reduced dollar amount. 

4. Not Currently Collectible: a program where the IRS voluntarily agrees not to collect on the tax debt for a year or so.

5. Filing Bankruptcy: discharge your tax debts under the strict rules of a Chapter 7 or 13 bankruptcy petition. 

There’s no “secret sauce” in paying off tax debts.

These are the only five ways of getting out from under the IRS’ aggressive debt collection tactics. Finding a knowledgeable Tax Professional is key to not compounding your mistakes.

There are potential pitfalls and advantages to any of the above solutions but going it alone could be disastrous to your financial situation.  If you make the wrong decision.

Some tax professionals make promises that are unrealistic so you need to find one who will focus on your unique financial situation and determining what the best course of action is for you.