Tax Debt
Relief

There are a number of scenarios that might prevent you from paying your taxes in full or on time, sometimes for several or even many years. Whatever the reason, if you don’t pay your taxes, you will owe back taxes, or tax debt. Eventually, the IRS will come to collect on that debt, which can result in wage garnishment, and even liens on property. Tax debt can be overwhelming, frightening, and even financially devastating without the right guidance.

Fortunately, there are several ways to lessen the impact of tax debt, and get yourself squared away with the IRS. The right solution for you depends on a number of factors, which you can explore with an experienced, knowledgeable tax debt relief attorney.

Examples of tax debt solutions include:

• IRS Payment Plans: The IRS offers scaled plans to help people pay off their tax debt. Depending on your income and how much debt you have, you can apply for a short-term (180 days or less) or long-term (120 days or more) payment plan. Tax repayment plans do not exempt you from fees and interest, but do factor them into the plan.
• Offers in Compromise: If you cannot reasonably pay off your tax debt, or if paying off your debt would create undue hardship, this solution may be helpful. It is essentially an agreement with the IRS allowing you to settle your tax debt for less than the full amount owed. The IRS doesn’t accept offers in compromise as often as payment plans (accepting only around half of all applicants), but rejections can be appealed. Lower-income people with less assets usually have a better chance of acceptance.
• “Currently Not Collectable” Status: If you can prove that you cannot reasonably pay your back taxes as well as your living expenses, you can also ask the IRS to put your debt on “Currently Not Collectable” status. This is essentially a delay in collection that buys you time, and is more of a tool to be used alongside other solutions.
• Take out a Loan: Tax debt is worse for your financial health than most other debt, partially because of the IRS’s high interest rate. For this reason, some people with tax debt may want to take out a loan or line of credit from a bank or from a qualified pension plan like a 401(k) to pay their tax debt. If the interest rate for the loan is less than the IRS’s interest rate, this plan may make financial sense.

The most important thing you can do if you have tax debt is to consult with an experienced, qualified attorney. The right tax relief attorney can be crucial in finding a payment or debt relief plan that works for you. In Whittier, CA, the man for the job is Attorney Nicholas Gebelt. Attorney Gebelt has the experience, legal understanding, and financial acuity to help you get a fresh start. Call (562) 777-9159 for a free 20-minute strategy session today.