By Internal Revenue Services, federal taxes are collected in order to carry on with the governmental activities. In case taxpayers do not pay their taxes on time then IRS can try to collect the money through repossessing a business or personal property, wage garnishment and / or bank levy.
If a taxpayer owes tax to the government then they may ask for tax settlement. It is possible to go with the request of tax relief at the same time also. Repayment of the taxes is generally done through the process of tax settlement. IRS Minnesota may agree to do a settlement with you in order to get the money. For future debt, same rule can be applied also.
In order to get tax settlement or tax relief in Minnesota, it is always better for a taxpayer to contact an experienced and knowledgeable professional. Issues on the way can be eliminated completely in the process. Several payment options may be presented to you for benefit. Following options for tax settlement is mostly observed.
Offer in Compromise
For tax settlement, offer-in-compromise is considered one of the best possible options. For the payment, an offer can be made by the taxpayer to authority. Promise is given to pay back the tax on time. IRS may accept the settlement offer as a compromise. Following to the payment of the money, debt can settled quite easily.
Generally, 25% of the total amount must be given at the very beginning. For tax settlement negotiation can go on in the future. The process is time consuming and expensive without any doubt. Lots of financial data has to be sent to the IRS in due course. In case the efforts are denied by IRS then collection measures may go on from the side of IRS.
How to qualify?
- Issues related to the accuracy of tax liability can be seen. If the IRS thinks that claim of the taxpayer is true to some extent then offer-in-compromise may be accepted.
- IRS may not able to collect the tax debt from the tax payer at any given occasion.
- If paying the tax is hardship for the resident then it can be considered also.
- Previous deadlines for tax must be maintained by tax payer for minimum 5 years.
- Requirements must be met.
Tax debt can be paid through installment agreement also. In this way, tax debt can be offered with the assistance from a monthly installment. If there is debt of $ 25,000 then you can negotiate to repay the money in a span of 60 months. It is a cost effective payment option. Interest and debt penalties can be eliminated in the process too.
How to qualify?
- Self employed taxpayer must make payment in quarterly manner and estimation must be made adequately at the time.
- Assurance must be given on tax file.
- Taxpayers must pay the tax for the last 5 years consistently.
- Similar agreement must not be made with IRS in last 5 years.
Option of installment agreement with partial payment can be found in due course. Through consultation with the professional, you must choose your option for tax payment carefully. Here at MWB Tax Solutions, we can assist and guide you through the process on how to get tax relief and settle any tax debts.