How Do I Settle My Tax Debt?
Being in debt can already be stressful, but if you haven’t been able to pay your taxes you may be feeling some added pressure from the IRS. But what can you do when things already feel hopeless and you can’t find a way out of your financial struggles? Our experienced San Diego tax attorneys at Milikowsky Tax Law have compiled a list of actions you can take to help you settle your debt.
- Installment agreements: An installment agreement is a monthly payment plan to pay off the IRS. As long as you pay your debt, you can eliminate any payments for penalties, interest, and setting up the agreement.
- Partial payment installment agreement: Like the installment agreement, you agree to pay your debt to the IRS in a monthly payment play. But in this agreement, the longevity of the plan is long-term and a reduced dollar amount per payment.
- Offer in Compromise: In this program you can settle your tax debt for less than what you owe. This is a great option if you owe the IRS more than you can afford, but can make a payment in the form of a lump sum.
- Currently not collectible: In this program, the IRS does not collect on your tax debt for a year. This is useful because you can file a collection appeal to stop the IRS from terminating an installation agreement. From there you can explain to the IRS how you plan to solve it without levy.
- File bankruptcy: Even though filing for bankruptcy can help you get out of tax debt, you should only consider this option if you qualify. Chapter 7 and Chapter 13 of the Bankruptcy Code can help you discharge allowable debts and provide you with payment plans.
If you find yourself in tax debt and need assistance with your financial struggles, contact Milikowsky Tax Law for the help you need. You don’t have to face your financial matters alone!