Our government needs taxes to operate and build things like schools, roads, and hospitals. It is not surprising income tax is the least favorite word of most people. However, anyone who earns enough money in the United States whether a business or individual must pay taxes to the IRS. Sometimes, these taxes can get burdensome and you have no way of paying them. No one like to owe the IRS because it can be frightening. Not paying taxes comes with serious consequences so if you find you are enable to pay, you should seek tax relief in Brooklyn.
A common way to seek tax relief is by Offer in Compromise. The Offer in Compromise gives you a chance to settle the debt for less than the amount you owe. This can vary, but the common amount may be 10% of what you owe. Approval will be based on several factors like asset equity, wages, and total debts. The IRS will only consider your case if you are not currently filing bankruptcy. You can opt to pay in a lump sum or periodic payments. If you choose the lump sum, submit 20% of your proposed offer and wait. For periodic payments, just send your first payment with the application. Keep paying what is left of the balance each month until the offer gets accepted.
Another option is installment plans. Installment plans are ideal for those who do not qualify for Offer in Compromise. You must owe at least $50,000 in taxes to qualify which is a change from the previous $25,000 minimum. The installment agreement comes with fewer penalties, but you still pay interest until the balance gets paid. Keep in mind you will be charged various fees for starting this process. The IRS usually gives you a time frame to pay the debt . The time you have to pay the debt is based on what you owe and kind of tax debt.
You cannot keep ignoring your tax bill. Ignoring debts does not make them go away. Dealing with the IRS may sound frightening, but they understand you may not always be able to pay on time. They offer many forms of tax relief. Click here for more info.
