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Owing the IRS money can be an extremely stressful situation. The IRS uses many different tactics to collect past
due bills. They may send you a letter, assign you a Revenue Officer (RO), or possibly try to communicate with you
at your place of employment. Unfortunately, the IRS has the authority to levy your bank account, savings account,
or paycheck. Additionally, they also have the power to close down businesses and seize assets, which could include
your personal residence.
Before you start stressing, you should know that the IRS is not able to levy accounts/paychecks or seize assets
without first notifying you. Prior to any significant action being taken you will receive correspondence from the IRS
entitled “Final Notice Before Levy”. This gives you the opportunity to pay the owed amount, or higher an outside agency
to help you to resolve your IRS debt. Most consumers with tax debts under $10,000 will make the payment on their own or
will enter into an installment plan arranged with the IRS. Researchers have determined that most people that are unable
to pay tax liabilities of $10,000 or more should seek outside assistance.
If you are one of these people that can't afford to pay tax liabilities of $10,000 or more you should seek professional
assistance from a Tax Relief Specialist, Attorney, CPA, or Tax Resolution Agency. With assistance, you will learn that there
are a number of options when it comes to your IRS debt. Depending upon the severity of your situation one of two IRS settlements
may be available. The first is an offer in compromise, which reduces the principal amount owed to the IRS. The second is an installment
agreement, which is a payment plan for the full amount owed, with a reduction in penalties. However, in order for the IRS to consider
making an agreement for an installment plan you must a) have filed returns and paid your taxes for the last 5 years, b) if
self-employed be paid up to date on your quarterly estimated tax payments, c) promise to file tax returns and pay all taxes due
while the installment plan is in effect, d) not have had an installment plan with the IRS within the last 5 years.
Seeking the advice of a professional is usually a very good idea. They will be able to help you evaluate your situation and determine
the true amount of taxes owed to the IRS, including taxes, penalties and accumulated interest. They will also help you understand
whether collection limitations or penalty cancellations are possible. An experienced tax professional will be able to help you determine
if your situation meets IRS standards for “doubt as to collect ability,” “doubt as to liability” or “economic hardship”. In addition,
they will help you negotiate with the IRS to determine an agreed upon course of action to resolve your debt situation.
While Knockout Debt cannot help you negotiate with the IRS, we can help you negotiate with your other creditors, which in turn will help you to repay your IRS debts. Our negotiators will deal with your creditors to work out the best settlements for you. To receive your free consultation fill out our form to the right or call us toll free at 888-443-3328 and inquire about our debt solution. Become debt free today!
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