Tax debt can build up fast and feel impossible to escape from. However, there are several legal options for tax debt relief offered by the Internal Revenue Service (IRS) and other sources. Exploring ways to manage or escape tax debt may help you overcome this financial challenge. You can also ask a Tullahoma bankruptcy lawyer about your options related to tax debt discharge in bankruptcy.
What Are My Tax Debt Relief Options?
There are multiple IRS tax debt relief options out there. However, these legal options for tax debt relief offered by the IRS are only accessible under certain conditions. You might be eligible for tax debt relief through the IRS if you meet certain requirements.
The IRS will assess whether you properly filed all your tax returns and made the required tax payments. They will see if you have a valid extension for any tax returns. You must not currently be involved in a bankruptcy case. If you are an employer, the IRS will determine if you made tax deposits.
If all of these eligibility criteria are met, then the IRS may grant you an offer in compromise. An offer in compromise is a settlement between you and the IRS that lets you pay less in tax debt than what was originally owed. Some situations may allow the option to pay all at once or in monthly payments.
There are other tax debt relief legal options out there. A tax-payment installment plan is when you are permitted to pay a minimal amount a month to your tax debt. However, the IRS may also garnish your wages when tax debt is not paid. You have the option to request a change in this if you are unable to afford living expenses.
Sometimes the IRS can label your tax debt uncollectable if you can prove you cannot pay the taxes at this time. Bankruptcy is often a last resort and can be used under specific circumstances to discharge tax debt.
Avoid Tax Det Relief Scams
Avoid the dangers of tax debt relief scams that can potentially lead to greater financial problems. Some tax debt relief companies will make claims that they can help you escape tax debt through IRS hardship programs. They will claim they can stop back-tax collections and make other exaggerated claims.
The reality is that some tax debt relief companies cannot always guarantee a solution to your tax debt. They have about the same limitations you do with the IRS. If you end up running into a scam, the scammer will take your money with no benefits in return. Be wary of tax debt relief companies that charge extremely high fees before providing any services.
Call Tom Bible Law for Legal Aid
You may not have to deal with tax debt forever. Feel free to contact us at Tom Bible Law today at (423) 424-3116 for a consultation about options for tax debt relief. Our experienced team of Tennessee bankruptcy attorneys is ready to help you explore all your legal options related to bankruptcy and tax debt. We serve clients in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.