What Are My Options if I Owe the IRS?
Any notice from the IRS is nerve-wracking but being informed that you owe taxes is worrisome, to say the least. The IRS is powerful and can take extreme measures to get the money you owe them. Their means of collection include:
- Seizing valuable assets including bank accounts and automobiles, even your home.
- Garnishing your paychecks
- Putting a levy on tax refunds
Double-check the IRS- The IRS is not infallible, so you need to double-check their calculations and make sure the notice is correct. The IRS can make mistakes, and you may not owe them anything. That means you done worrying about the IRS.
Try to minimize the penalties- When you owe taxes, the late fees and penalties can add up quickly, but you may be able to keep them to a minimum be appealing to the tax agent and making a quick payment.
Request an installment plan- If you cannot pay off the entire balance of what you owe, the IRS will allow you to make monthly payments. You need to know that interest continues to accrue and you must be pay off your debt within three years.
Hardship suspension-To be granted a hardship suspension, you must be able to show that you cannot afford to pay your tax debt. The IRS will review your case periodically to see if you still lack the means to pay off your tax balance. You will continue to accrue interest until your pay off your balance.
Offer in compromise-You may be able to reduce your debt through an Offer in Comprise. When you enter into this agreement, you offer to pay off your debt in full or a smaller amount than you owe. Such arrangements give you the opportunity to stop all collections and give you a clean start.
Bankruptcy- You may have to take drastic steps to resolve your state tax or IRS problems and declare bankruptcy. That may be your only option failed to get any of the above agreements. Your IRS debt may be dischargeable through Chapter 7 bankruptcy, and some bankruptcy structures allow you to pay the IRS with little to no interest.
Consult with a Tax Attorney in New Hampshire
At USAttorneys.com you can find a devoted team of tax lawyers with years of tax litigation experience. You can find one near your New Hampshire location by clicking on your county. You can browse their profiles and learn about their education and legal experience.