When you owe money to the IRS, it is very easy to start worrying about the consequences. This cloud of stress and paranoia will hang over you until your IRS debt problem has been taken care of. The IRS creditors only make matters worse because they can, and will, get aggressive to get their money from you. Before the IRS comes at you, they will call you or send you a letter with the amount you owe and the opportunity to settle your tax debt. However, paying the amount owed to the government immediately is difficult for some people and that is when the IRS will take their course of action.
The IRS is the strongest collection agency in the world and they have many ways of getting the money you owe them. They can seize your assets, take money from your accounts, and/or garnish your wages. If you owe the IRS, your best option is to cooperate with them or you can sink into a scary situation. Getting tax debt relief as soon as possible should be your priority.
Here are some ways that the IRS can get their money from you:
- Tax Levy
- Tax Lien
- Wage Garnishment
Tax Levy
A tax levy is when the IRS takes legal seizure of your property to satisfy the debt you owe them. They have the authority to take levy on properties such as your car, boat, or house. They can also take levy of a property that is held by someone else. Levies can include wages, dividends, and bank accounts.
Before any of this can happen the IRS must send a notice of demand for payment. After the letter has been sent and the taxpayer neglects the notice or refuses to pay, 2 final notices of Intent to Levy and a Notice of Your Right to a Hearing will be sent to the taxpayer, dropped off at their address or handed over in person.
Tax Lien
A tax lien is different from a tax levy. Tax lien means that the government will put a legal claim against your property. The tax lien will alert your creditors that the government has the legal right to your property. A lien will attach to all of your assets and to future assets acquired during the lien. A tax lien also attaches to all of your business properties and to all rights to your business property including accounts receivable. If you were to file bankruptcy, your Notice of Federal Tax Lien may continue after the bankruptcy.
Wage Garnishment
A garnishment on your wages is another way the IRS can get the money owed to them. Like other creditors, the IRS has the power to garnish your wages. The IRS will take a portion of your wages. The amount they take is usually more than the amount regular creditors can take. The IRS is required to leave enough wages for basic living necessities.
Tax Debt Relief Options
There are some tax debt relief solutions. Some of your options include:
- Offer in Compromise
- Installment Agreement
- Fresh Start Program
Offer in Compromise
An Offer in Compromise (OIC) is a tax debt relief option. It is an agreement between the taxpayer and the IRS. This agreement allows the taxpayer to pay less than the amount they owe. This compromise can be set up where the taxpayer pays one large lump sum or set up an installment plan. The Offer in Compromise method has settled many taxpayer IRS debts, however, this tax debt relief plan still does not work for everyone.
Installment Agreement
The second tax debt relief option is Installment Agreement. An installment agreement is when instead of the taxpayer paying one large lump sum, the taxpayer is put into a monthly payment plan at a more affordable rate until the debt is resolved.
There are a few types of installment agreements that the taxpayer can choose from:
- Hardship Payment
- Full Payment Installment Agreement
- Penalty Abatement Petition
- Streamline Installment Agreement
- Complex Installment Agreement
- Partial Pay Installment
Fresh Start Program
The IRS Fresh Start Program was created to make it easier for taxpayers to qualify for tax debt relief through an Offer in Compromise and has made it more flexible for the agency to calculate a taxpayer’s ability to pay when evaluating the IRS settlement application. However, the IRS may not accept your application because they will most likely believe you can pay off the debt. This is when it is important to hire a qualified and professional IRS tax debt relief attorney who can prepare your Offer in Compromise so you can receive the debt relief you are entitled to.
Settling your debt is a long process with many laws that can get confusing. Hiring an experienced IRS tax debt relief attorney is very common and is your best bet.
Installment Agreements
The Fresh Start program now spreads across to streamlined installment agreements. Today, individual taxpayers with tax debt of no more than $50,000 can pay through direct debit payments (monthly) for a period of up to 72 months, that’s six years. The IRS may need some financial information from the taxpayer in order to proceed with this tax debt relief program. Make sure to consult with one of our Tax Account Executives to get more information.
If you need an installment agreement for tax debts exceeding $50,000 or for a longer period than six years you will still need to provide the IRS with a financial statement. In these cases, the IRS may ask for one of two forms. Make sure to consult with one of our Tax Account Executives to get more information.
CuraDebt can help you resolve your IRS tax debt problem
The Cura Debt Tax Alliance is well qualified and is experienced in the ins and outs of the tax debt relief process. CuraDebt is in full legal compliance with the IRS and ensures the best possible solution for your tax problem. Many people have trusted CuraDebt Tax Alliance because of their impressive qualifications and 14 years of experience.
Why Choose The CuraDebt Tax Alliance?
Once you have given us the go-ahead to represent you to handle your tax debt, we will do everything we can to prevent any NEW liens and Levies from occurring IF they haven’t already occurred.
We will have all your options presented to you in 30 days or less and the pro’s and cons of each one so you understand your options. Then you will be able to make an informed decision based on sound and precise figures. We will do everything possible to keep you safe from enforcement and garnishment.
CuraDebt’s 3 Step Process
We employ a three step process to establish the best methods to relieve you of your tax burden and maintain a good relationship with the IRS and your State.
- Free consultation with one of our tax debt account executive. The first step is a financial analysis to identify where you stand with the IRS, how much you owe and what penalties, if any, have been applied to your account.
- Analyze your case. Steps are taken to protect you. We take a detailed look at your files and select the best solution for your tax debt. We focus on compliance. It is important to maintain compliance with IRS rules and regulations, and ensure that future returns are in good standing. This eliminates any additional penalties or debt to be applied to your account.
- Tax debt resolution. A resolution is sought with the IRS. There are a number of tax debt relief solutions. Your options depend on your unique situation, thus it is important for us to analyze your case. In our many years of experience in handling tax debt for hundreds of individuals just like you, we know that everyone’s situation is different and how important it is to get all of the details before moving forward. Once we have this clear we start the resolution process.
- Tax debt RELIEF. Finally you will feel free from that heavy load you have been carrying. Our 5 star reviewed customer service will bring you peace of mind. Our team of experienced tax account executives will work relentlessly to resolve your tax debt.
CuraDebt has been helping people nationwide with their financial woes since 2002. We have solutions for debts and with our well-trained staff there is no need to make promises, because our track records speak for themselves. CuraDebt is one of the top debt settlement companies and tax debt relief companies in the United States.
Contact CuraDebt to get a free tax consultation at 877-999-0486 or click here on the bottom below.