If you’re struggling with tax debt, you might feel like you’re at the mercy of the IRS. And, while the IRS doesn’t have to bend over backwards to accommodate anyone, you should know that they are willing to work with you in order to make your tax debt more manageable!
Because tax debts are difficult to have discharged through bankruptcy, it might seem like a huge burden. However, when you take advantage of the IRS tax debt management options, you’ll start to notice that load feeling lighter!
Two Popular Tax Debt Approaches
The IRS offers several options for people who are looking to get rid of tax debt. The two most popular ones are Offer in Compromise and Installment Agreements. Let’s take a look at these two plans.
Offer in Compromise is available for those who have more tax debt than they’ll ever be able to repay. The IRS will actually reduce the amount you owe through this plan. However, you should be prepared for sharing all of your pertinent financial information with the IRS. Income, expenses, assets, and ability to pay are factors that the IRS takes into consideration. For more information, visit the IRS page for this program.
Installment Agreements is for those who aren’t struggling quite as much, but are still having a difficult time paying their IRS tax debt. If you can knock out your tax debt in 120 days, then you can avoid paying the fee associated with the installment agreements program. For more information about applying for this program, visit the IRS page.
Just because you can’t discharge tax debt in bankruptcy doesn’t mean you should let your situation get you down.