How to Achieve IRS Debt Reduction
When you have a large sum of money owed looming over your head, IRS Debt Reduction can be tricky and takes more than just money to bring relief.
Sacrifice, common sense and squeezing the most out of the dollars you have will become the determining factor.
There's roughly five ways to help you achieve IRS debt reduction.
You can set up installments, either the same amount for a length of time to satisfy the amount owed or the partial payment agreement where you can pay less on the amount but will take longer to pay it off.
Compromises are available, which are amounts less than what you owe but would be paid in full if you do it in one lump or just a few payments.
The non-collectible clause is another way in which the IRS has to agree they cannot collect these taxes off you for another year, giving you a bit of grace time anyway but you have to make good on it.
The last resort would be bankruptcy in the Chapter 7 or Chapter 13 variety.
This usually scars your record for 7-10 years and makes it harder to get credit, get loans, cars and sometimes, even jobs.
If you keep your costs under control, you can manage this yourself with the right discipline.
If you hire a tax professional for IRS debt reduction, they can bill you hourly or by a flat fee for all services and time used.
There are forms you can fill out yourself to save a few bucks and all the tax preparer needs to do is focus on your debt and how to negotiate or eliminate it.
It all comes down to you, the individual of how you handle it, your tendencies to handle and manage finances.
If you don't quite trust yourself and have too much of an urge to spend, hired help or a negotiation would be best suited for the situation.
Sacrifice, common sense and squeezing the most out of the dollars you have will become the determining factor.
There's roughly five ways to help you achieve IRS debt reduction.
You can set up installments, either the same amount for a length of time to satisfy the amount owed or the partial payment agreement where you can pay less on the amount but will take longer to pay it off.
Compromises are available, which are amounts less than what you owe but would be paid in full if you do it in one lump or just a few payments.
The non-collectible clause is another way in which the IRS has to agree they cannot collect these taxes off you for another year, giving you a bit of grace time anyway but you have to make good on it.
The last resort would be bankruptcy in the Chapter 7 or Chapter 13 variety.
This usually scars your record for 7-10 years and makes it harder to get credit, get loans, cars and sometimes, even jobs.
If you keep your costs under control, you can manage this yourself with the right discipline.
If you hire a tax professional for IRS debt reduction, they can bill you hourly or by a flat fee for all services and time used.
There are forms you can fill out yourself to save a few bucks and all the tax preparer needs to do is focus on your debt and how to negotiate or eliminate it.
It all comes down to you, the individual of how you handle it, your tendencies to handle and manage finances.
If you don't quite trust yourself and have too much of an urge to spend, hired help or a negotiation would be best suited for the situation.
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