Dealing with IRS debt can be overwhelming and stressful, but it's important to take action to resolve it. Ignoring the issue can result in serious consequences such as wage garnishments, property seizures, and even legal action. Fortunately, there are strategies you can use to settle your IRS debt and regain your financial freedom.
Who Is Eligible for IRS Debt Settlement?
If you are solvent and have assets that can be used to pay off your IRS debt, you are not likely to be eligible for a debt settlement program. These programs are typically reserved for taxpayers who are experiencing financial hardship and cannot afford to pay their full tax debt. The IRS will require you to exhaust your assets, such as selling real estate or stocks, before they will consider settling your tax debt for less than the full amount owed. If you truly do not have the funds or assets to pay off your debt, the IRS, you may be eligible for the Offer in Compromise settlement program.
Offer in Compromise
An Offer in Compromise (OIC) is a program that allows taxpayers to settle their tax debts for less than the full amount owed. The IRS will consider an OIC if they believe that it's unlikely that they'll be able to collect the full amount of taxes owed. To qualify for an OIC, you must be current on all tax filings and payments and demonstrate that paying the full amount owed would create a financial hardship for you. If the IRS approves your offer, you can settle your debt for less than the full amount.
To see if you qualify for this program, refer to the guidelines on the IRS website. It's highly recommended that you seek the help of an accountant to guide you through the OIC process. The forms and financial questions can be beyond the capabilities of most people, and an accountant can provide the necessary guidance and expertise to help you through the process.
Seek Professional Assistance
Navigating the world of IRS debt settlement can be complicated, which is why it is necessary to seek the help of a qualified CPA. A CPA can help you determine the best strategy to settle your debt, whether it be through the OIC program or another solution. Even if you do not qualify for an OIC, a CPA can help you get caught up on IRS payments and create a plan to resolve your debt.
With over 35 years of experience in dealing with the IRS and settling tax debts, Larry Bradford, CPA, can help you navigate the complicated process of settling your debt. He can help you determine the best strategy to settle your debt, whether that be through the OIC program or another solution. Don't let IRS debt hold you back any longer. Take the first step towards resolving your tax problems and contact Larry Bradford today to discuss your options. Call 512-402-0049 or send an email to firstname.lastname@example.org to schedule a consultation. With his help, you can take control of your finances and move towards a brighter, more secure financial future.