Caught not paying your back taxes? Then it’s probably best to discuss a possible tax settlement with the IRS. Tax settlement is highly recommended if you’ve committed an honest mistake in not filing for the proper taxes or if the tax debt you have to pay is too high and you can not afford to pay it in full.
First approach
It is better for you to contact the IRS first before they contact you. If you’ve seen your finances and noticed that there’s something wrong with your taxes, call up the Internal Revenue Service and ask about what you can do to fix the problem. Or, if the IRS contacts you first, act on it quickly and do not put things off. The worst thing to do is ignore the government tax agency and probably incur stiffer penalties.
Once you’ve acquired a full assessment of your full tax liability, then you can assess if you can pay it in full or in parts. Paying in parts would entail paying interest rates and other penalties. However, the IRS does accept credit card payments.
Installment Agreements
If you are unable to pay for your tax liability in full, then a tax settlement would be a viable option. An installment plan, you can discuss or negotiate the terms in which you can pay for your taxes. The smaller the assessment, the easier it is for you to adjust your payment options accordingly. Of course, this kind of tax settlement will also mean having to pay extra due to interest rates incurred.
An advantage of paying in installments is that the IRS will stop other collections. But you must assure the IRS that you will no longer be delinquent in your future tax payments.
Convenience
If you owe the IRS less than $25,000, then you can go for a tax settlement through the Payment Plan option. From there, you can, once and for all, decide if you will pay your tax debts in full or you’re going to request an affordable installment plan.
Another option for a tax settlement is the Offer in Compromise (OIC). This is an agreement involving the IRS and the taxpayer that allows the taxpayer to settle their tax debts for less than they actually owe.
Dealing with the IRS
The IRS can be very tough and difficult to deal with. But this does not mean you have to play fire with fire. You can deal with them very professionally and discuss with them the best tax settlement option for you.
If you cannot deal with the IRS directly, then you can hire a licensed and experienced tax representative to discuss and negotiate the tax settlement for you. In fact, it is highly recommended that you hire a tax professional / tax relief expert to deal with your IRS problems, because they are knowledgeable and well-equipped to deal with these problems directly.
Reputable firm
A reputable tax relief firm that deals with tax settlements is Mike Habib, EA. Mike Habib is a tax relief expert and is experienced in dealing with problems concerning back tax settlements. Mike promises to provide personal solutions to your specific tax problem, and he promises to negotiate the best possible solution for your tax problem. Mike Habib, EA also provides free initial consultation so you can weigh your options and see what the best tax settlement method you can use to deal with your IRS problem. Call him at 877-788-2937 or online at www.myirstaxrelief.com