Owing taxes to the IRS isn’t the end of the world, even if the sums involved are large. The IRS offers tax payers in Chicago several programs that enable them to get their tax account straight without having to pay the tax money they own all at once. Here are 5 effective ways for a tax payer to settle IRS tax debts in Chicago.
Sign an installment agreement or partial installment agreement
You can agree with the IRS to pay your tax debt in installments, usually every month — this is an installment agreement. For many tax payers who owe money to the IRS, an installment agreement is the most straightforward and hassle-free solution to resolving their tax debt. A newer, more flexible alternative is the partial payment installment agreement, a long-term payment program at a reduced dollar, which can be a way out for tax payers who cannot cope with the monthly requirements of a standard installment agreement. Using professional tax services in Chicago makes it easier for you to reach a favorable (partial) installment agreement with the IRS.
Agree upon an offer in compromise
In some cases, the IRS understands that recouping all tax debts from a company or individual is unfeasible due to their difficult financial situation and may settle instead for an offer in compromise. This is a program which enables tax payers in bad situations to settle their tax debts for less than the true amount they own. An offer in compromise can involve either a short term payment plan, or a lump sum payment. Using a professional and experienced tax consultant in Chicago increases your chances of agreeing upon an offer in compromise with the IRS.
Claim innocent spouse relief
If your spouse has had tax problems in the past, it doesn’t mean that you have to inherit them. You can use a tax consultant in Chicago to claim innocent spouse relief and liberate yourself from tax problems that are not your own doing. The expertise and guidance of a tax consultant in Chicago proves invaluable when seeking innocent spouse relief, as the IRS has an extensive list of guidelines and requirements which you must meet in order to be eligible for this program.
Gain ‘not currently collectible’ status
When a taxpayer cannot afford to pay his tax debts, he or she can request the ‘not currently collectible’ status from the IRS, which means that the IRS will not attempt to collect tax debts for about a year. Winning extra time gives the taxpayer the opportunity to stop an existing IRS levy or seizure and resolve financial problems. If the situation requires it, you too may claim this status, provided that you can offer enough evidence that you are unable to pay your taxes.
Settling IRS tax debts can be a difficult and frustrating experience, which is why you may want to consider using our tax services in Chicago. At Defend Tax Payer we have 45 years of combined experience with tax problems and can use our insight to find a fast and effective solution to your problem. Contact us and we will help you.