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For millions of Americans, paying their taxes is a big challenge because their earnings have decreased or because their tax bill is larger than expected. If you haven't been able to settle your debt, the IRS can come after you in a number of ways. Unlike other creditors, they can gain access to your wages as well as your assets. To prevent wage garnishment, you will need to take advantage of professional tax resolution services.
A tax specialist can help you take advantage of the IRS forgiveness program to stop garnishment and release you from your debt. That way, you can start fresh, and you no longer have to worry about payments you can't afford. There are several options in the program, and your tax professional will choose the one that is most suitable for you. Let's have a closer look at how you could get rid of your debt.
What Happens When You Don't Pay Tax?When you fail to pay your taxes, the IRS will first send you a warning, so you can rectify the mistake. However, not everyone has the money right away, and many taxpayers are unable to meet this obligation. If you still haven't paid after they have warned you, they might initiate the collection process. Because they have high collection power, this can include a number of strategies that allow them to access the outstanding funds.
For example, the IRS might place a levy on your home, giving them the right to seize it if necessary. Similarly, they can gain access to your bank account and take away any savings you might have. One of the most distressing collection methods is when they garnish your wages, which means that part of your salary is seized. This makes your situation a lot harder because you'll have very little money necessary to pay for your life.
Fortunately, help is available in the form of the IRS forgiveness program. This provides taxpayers with a series of measures that can lighten their tax burden and stop the collection process in its tracks. Although all methods are valid, the one that is best for you depends on your individual situation. Deciding factors might be whether you currently have an income, whose fault the tax problem was, and whether this is the first time you're in trouble with the IRS.
The best way to find out if you could benefit from these methods is to contact a tax specialist, who will be able to analyze your finances and figure out which of the following programs you are eligible for. They can then file your request quickly and correctly, so the collection process can be stopped as soon as possible, and you can get the best outcome.
One of the most sought-after solutions is an offer in compromise. This involves letting the IRS know that you don't have the means to pay the entire balance but that you are willing to offer a certain, more realistic amount. If you're successful, you can significantly reduce your tax debt and make sure your payments are manageable in the future.
However, the IRS is strict about allowing taxpayers to access an OIC because they believe that everyone should pay the entire balance they owe. For this reason, you will need to demonstrate that you are truly in financial difficulties and that there is no way you could come up with the outstanding amount. Your specialist can help you figure out whether you are eligible and if so, provide the IRS with the necessary evidence for them to accept your OIC.
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Currently Not Collectible status is designed for people who have no way to pay any of their debt. This applies to those who don't currently have wages or those who would be plunged into poverty by wage garnishment. Once you have achieved the status, you are relieved from paying your bill, and the collection process will stop. However, if your situation changes in the future, your debt will still be there, and you'll be expected to pay for it.
While CNC status is one of the most comprehensive options and can stop you from being pursued, it is challenging to achieve, and you have to consider what would happen should your financial situation improve. If you believe you are eligible for this, you should double-check with a tax resolution specialist, who will help you decide whether this is currently the best option for you.
Most people who are currently earning a wage won't be able to get their tax debt wiped off or reduced. However, the IRS is receptive to installment agreements, which spread out your payments over a long period of time. As soon as you set up an agreement with them, they will stop any collections and allow you to pay off your debt more slowly.
It's important to remember that this isn't an easy option because you still have to pay the full amount and that failing to pay could put you at risk again. However, it's an effective way to prevent the IRS from seizing your assets, such as your home, car, savings, and wages.
Some people were shocked when they realized that they had tax debt because their spouse caused the issue. Without the innocent spouse's knowledge, they previously didn't declare their income, wrote off items that weren't part of their business expenses, or otherwise attracted the attention of the IRS. Now, the couple is facing a high amount of debt they are unable to pay off.
If this happened to you, you might be able to claim innocent spouse relief. As long as you can prove that you didn't know about the issue, the IRS won't hold you responsible for it.
Penalties related to unpaid taxes can accumulate very quickly. You might have to pay up to 25% more than your initial balance, plus interest which accumulates daily. Even if you have to pay your entire tax debt, wiping out these fees and penalties can make a huge difference to your financial situation.
Your tax specialist will figure out whether you can benefit from first-time penalty abatement or whether there were circumstances outside of your control that warrant elimination of the fees. Either way, it's worth exploring this option to immediately wipe out a significant chunk of your debt.
Tax debt is a serious issue because the IRS has immense collection power. They can garnish your wages, seize your assets such as your house or car, and take away your savings directly from the bank. To prevent this, you will need to take advantage of their forgiveness program, which encompasses a number of ways to reduce or eliminate tax debt you are not able to pay off.
A tax resolution specialist can help you stop wage garnishment before it begins, thereby saving you a lot of money and hassle. Call or message us now at Tax Alliance in Santa Ana, CA to speak to one of our experts and find out how you could move forward. We will be happy to discuss your situation and find the perfect solution. In future years, we can then help you prevent problems by filing your taxes quickly and efficiently.
Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!
If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!
You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.
Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!
If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked! We help our clients nationwide!
You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.
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