Call Today for a FREE Tax Debt Consultation
(800) 540-0433

Tax Debt Attorney

A tax debt attorney

Owing money to the IRS can be stressful. Luckily, the IRS has two programs to offer and help resolve back taxes issues. The most common ones are an offer in compromise and an installment plan programs. Your tax debt attorney can help to understand the basics of how these two programs work.

If a person is not financially able to pay his tax debt immediately, then a person can make monthly payments through an installment agreement. However, if a debtor wants to eliminate or reduce the amount of interests and penalties he needs to pay, as well as fees for setting up an installment agreement, he will need to pay off his tax debt bill in full.

Before he applies, he should file all required tax returns and know that his future refunds will be applied to his tax debt until it is paid in full. If a debtor pays the full amount of a tax debt he owes within 120 days, he will be able to avoid fees. Costs of fees for setting up an installment agreement are $52 for a direct debit agreement, $43 if his income is below a certain level and $105 for a standard agreement. Do not forget to have a tax debt attorney on your side while going through all of these payments and fees.

Another way of dealing with the IRS is by using an offer in compromise settlement, where the IRS allows a debtor to settle for less than the full tax debt amount he owes. It is a standard option when a debtor cannot pay his entire tax liability, or if he does, it will put him in a financial hardship.

An offer in compromise is not as easy to obtain as it sounds. It is on a tax debt attorney and his client to prove a client’s struggle to repay the full amount of a tax bill. Going into this alone without a help of an experienced tax debt attorney will bring a lot of stress, sleepless nights and potential financial collapse in your family.