The recent financial has sent most of the taxpayers into the pit of tax debt. If you’re one of those taxpayers, you should look out for some IRS debt relief options to reduce the burden of debts. There are several programs such as partial pay installment agreement and offer in compromise (OIC). But what exactly tax debt is? It can be defined as the taxes you owe in a particular tax period which you should been paid way before to the IRS. If you are not paying taxes in times, don’t neglect it because IRS employees keep close eyes on the taxpayers who have not paid their taxes. To avoid such situations various employers withhold a portion of the employees’ salary so that the amount can be paid to IRS without any delays. If you own a business, you’re liable to pay self employment tax. If you fail to pay taxes in time penalties and charges will be levied on your account.
In case, you own a small business and looking for tax debt relief, you don’t need to do excess hunt for it. IRS has come up with several tax debt relief options especially for small business owners. If you want to refrain yourself from being sunk in the economic crisis, you can make use of these tax debt relief program(s). In order to qualify for any of the programs, you should first check the eligibility. Once you’ve checked the eligibilities, first thing you should do to avail the debt relief is to file your tax return completely that too without any errors. This will protect you from audit. No one wants to undergo an audit however, if your filing has errors or you’ve not attached the required documents, you’re more likely to experience this kind of situation.
There is another kind of tax debt known as unresolved tax debt. This is a debt which was not calculated on the earned income while filing tax return and not even paid to the IRS. Whether the error was intentional or unintentional, IRS will come to know it as the IRS agents take a closer look of your filing. If IRS found such error, you would need to pay large amount of debt. However, it doesn’t mean that you can’t get rid of such debts. It is possible to get relief on unresolved tax debt but you’d need to hire a professional tax attorney or tax firm. Professionals are aware of the tricks that can probably make you debt free.
Tax professionals will negotiate with the IRS on your behalf and try to settle your taxes. Without a tax attorney, tax authorities might levy a wage garnishment on your paychecks or garnish your bank account. In case, you’re not taking IRS’ notices seriously and ignoring them for several months, they are authorized to seize your property or any valuable assets to recover their money and settle the debts.