How to Resolve Tax Debt
Don’t get stuck paying severe interest rates on past due taxes when it can be very simple to make an arrangement to pay them back. If you owe taxes and cannot pay them back immediately, then there are a few things you can do that will help save some major headaches down the road.
- Go to the IRS website and read about the three options for paying taxes. Decide which method will work the best for you and your situation. The IRS offers three solutions which are an installment agreement, a delay in payment and an offer in compromise. Each option has its advantages and disadvantages.
- Gather all necessary personal information. This could include utility bills, mortgage payments and most importantly, last year’s tax return. The return will have important information that you will have to fill in. If you filed a joint return, then you will have to input your spouse’s information as well.
- Call the Internal Revenue Service if you are unsure which option to choose. They will be able to tell you exactly which option will work best and what you have to do to proceed with that option.
- Fill out any forms that are required per the option you have chosen. These will have to be mailed back to the IRS.
- Wait to receive a confirmation in the mail from the IRS. This will give clear instructions as to the next step and what you have to do to fulfill your end of the agreement. If they do not agree they will explain why and what other options you may have.