Have you taken a good look at your financial goals for the year? In less than three months, Americans will face one of their most dreaded dates of the year: Tax Day. While some are eager to get their taxes completed because they’re expecting a refund, others will worry about the amount of income tax they owe the government. This date always comes sooner than expected, especially as we recover from the excessive spending of the holiday season. However, there’s no reason to panic. You have debt relief options. Find the best solution for you.
Have you heard of an IRS Offer in Compromise? Essentially, if you’re facing financial hardship or tax troubles, you can ask the IRS to pay less than the full amount of what you owe. As with any tax planning preparation, there is information to collect, proper forms to fill out, and deadlines to meet. Get all the information before getting started.
Sounds good, but what does this offer mean for me?
Basically speaking, an IRS Offer in Compromise helps an individual or business reduce its tax debt. Eligibility requirements include a person’s:
- Ability to pay
- Status of balance
A professional tax debt relief team can guide you through the IRS Offer in Compromise application process and answer questions about how it can help your financial situation. It’s not a fun feeling to be overwhelmed by impending debt, but getting a head start and exploring all possible resolutions can help ease any anxiety surrounding the situation.
When you enter into this type of contract, there are terms and conditions that apply. If your Offer in Compromise is accepted by the IRS, you have to make sure that you still hold up your end of the deal by:
- Paying the offer amount decided in the Offer in Compromise
- Filing and paying taxes in full and on time for the next five years
- Allowing any tax refunds and credits be applied to your tax debts before submitting the Offer in Compromise
This tax tool requires a person to pre-qualify before becoming eligible. Dealing with the IRS directly can be overwhelming and a little bit intimidating, but consulting professionals in the industry who have experience with negotiations can take that burden off your shoulders.
Accounting Today reported that requests for this type of offer increased by nearly 30 percent between 2007 and 2011. This illustrates the fact that more and more people are taking advantage of the options available and making big strides towards responsibly handling their financial debts. Change the way you’ve been tackling your debts and have confidence in your efforts this tax season.
It can be tough to pay debts and save at the same time, but with careful planning you can start on the path of financial security. Don’t let tax season be something that sends you into a tizzy. All the positive actions you take today will pay off in the future. There’s no time like the present to get started.