If you need to settle back taxes with the IRS, you're not alone. Millions of people owe back taxes, and, like you, many of them live in fear of the repercussions. The first step you can take to settle back taxes is contacting the IRS before they contact you. Many people believe that is impossible to negotiate with the IRS, but there is hope.
If you contact the IRS and file your back taxes, you may be eligible to settle back taxes for a fraction of what you owe under the Offer In Compromise program.
Penalties on your tax delinquency add up. Proving to the IRS that you cannot pay these penalties can mean a reduction in the total amount due. Keep in mind, however, that interest on such penalties will not be forgiven.
If you've fallen on hard times, you can have the IRS place you on a temporary Currently Not Collectible list. While you're on the list, the IRS will not contact you for collection purposes. Periodically, you will need to prove your situation and re-qualify for the Currently Not Collectible list.
Don't qualify for the Offer In Compromise or Currently Not Collectible programs, but can't pay your back taxes in full? The IRS can offer a tax payment plan for you, so that you can make monthly payments on your tax bill rather than pay one large lump sum. Sometimes the IRS will even allow the total payments to be less than your total tax obligation.
The IRS determines all of your property and investments available, including your vehicle, home, and retirement accounts, to decide whether they feel you can pay your back taxes in full. You may be required to sell personal property, take out a home equity loan, or borrow from your retirement fund to settle your tax debt.
Whatever your method to settle back taxes, you need an experienced firm on your side. Top Tax Defenders has that experience:
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