Dealing with tax debt is different from how you handle your other debts. But you need not worry since it can be managed given the right amount of patience as well as the willingness on your part to lower down your debts.
For starters, getting debt help is highly recommendable especially for those who do not know where and how to start eliminating their outstanding balances with their creditors. Seeking for professional assistance is a very sensible thing to do because you will have to think of it as an investment in order for you to live a comfortable and financially secured life in the future.
Managing tax debt on your own – If you do not want to spend money to pay for debt relief services, you may opt to control your tax debts on your own. You can do this by requesting copies of your tax returns and double checking it for any discrepancies. From there, you can choose which option you can take.
Get professional help to deal with your tax debts – People with low tax debts can get away without the assistance from financial counselors, however for those who happen to owe thousands of dollars, get expert help from debt relief companies. Here are several things that you can check and counter-check in order for you to ensure that the company can truly extend their services to you:
Amount being charged or rate of services – There are several companies that can give you a quotation for the whole duration that you are going to require their services, while there are some companies that charge by the hour. Whichever way you prefer, bear in mind a budget and stick to it so that you will not have any added troubles.
Their credibility as a company – While there are many companies out there, you still need to check the legitimacy of the agency that you are going to tap. Professionals who are dealing with tax debts need to be certified public accountants, tax attorney, or an enrolled agent.
Several of the debt strategies that they can suggest to you, apart from double checking your tax return documents, include the following: installment agreement, filing for bankruptcy, offer in compromise, and partial payment.
You see, dealing with tax debt is not an entirely complicated process. Given the right time and strategy, you will be able to control your balances and slowly pay them all off.
- IRS Tax Consequences If A Creditor Forgives Your Debt (2008taxes.org)
- Ways to Settle IRS Debt (2009tax.org)