Tax Debt Relief - Paying Off Back Taxes

Falling behind on tax payments is by itself a troublesome issue

. And you know that you have to address this issue sooner or later. The best way to tackle the problem is by getting appropriate tax debt relief. And this tax debt help can be availed from any one of the many tax debt settlement companies operating in the market.

In majority of the cases, tax relief is sought for income tax debt. And this is what triggers taxpayers to manage and tackle their back taxes and get IRS tax debt relief. Generally speaking, you are said to be behind tax payments if you are late by at least 2/3 months.

In most of the cases, taxpayers try to settle the back taxes on their own but if the tax debt amount is large, you will certainly need professional help to deal with the problem.

In this write up, we will focus on some of the many tax debt relief options that taxpayers usually opt for. As a rule of the thumb, you seek professional assistance, the moment your tax debts have surpassed the USD$10,000 mark. And if you owe more than this amount then you will surely need professional help with your taxes.

One of the most common types of tax debt relief options is working out the payment plan. You can request the IRS to grant you permission for the same by applying through Form 9465. This is known as the Installment Agreement Request. You will be allowed to pay your back taxes as per the agreement plan provided the tax debt amount you owe is lower than USD$10,000. Also you are given a time period of 3 years to pay off debts to the IRS under this payment plan.

What are the other tax debt help options?

Aside from the payment request plan which is one of the most common forms of getting IRS tax debt relief, you will also be able to pay off your back taxes by any one of the following options. These are as follows-

a.Partial Installment Plan - You will be allowed to pay for your back taxes and the debt amount you pay will be lower than what you owe to the IRS. This is a type of tax debt reduction process. However, you will be able to avail this option only if the IRS approves of your request.

b.IRS Offer in Compromise - In this type of income tax debt relief, you will be allowed to pay off your back taxes in lump sum and this amount is usually lower than what you owe to the IRS. You could also opt for this option in form of a payment plan for a short time span. However, you will need to qualify for Offer in Compromise as the eligibility criteria are stringent.

Although there are several tax debt relief options, the best way to avoid any hassle and wait for your request to the IRS to be approved is by paying off your taxes well within time. It saves you time, money, and of course effort.

by: Sean Benton

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