Tax Settlement In Minneapolis
Many people believe that IRS debt settlement is a simple and quick paced process which they can get through with a bit of common sense. This is what most people believe before they actually start the negotiations. These people soon realize that the process takes an excruciating amount of time and it’s not as easy as it seems.
Even after all the time and resources you have invested in the getting your settlement accepted, the IRS may still reject your offer bringing you back to “square one” and you’ll need another way to settle your debts. To make sure this doesn’t happen, you need to be prepared before you go in. You need to know that there are multiple options available to settle your debt with the IRS.
People usually think that the IRS has only a single debt plan to meet the needs of the people, but in all honesty, they have quite a few of them. Finding the one that suits your needs can really help. Below you’ll find a few debt settlement options:
Offer In Compromise
Probably the most useful and hard to attain offer from the IRS. In this process you can actually opt to pay for far less than what you actually own to the IRS. Have you ever gone to a tax professional and heard them say that they can make your tax debt go from dollars to pennies? If yes, they are referring to an offer in compromise.
If the IRS reviews your current situation and deem you unable to collect taxes from, they will grant you an uncollectable status. This means the IRS won’t pursue you for taxes until your situation improves. By combining your uncollectable status with the statute of limitation you can actually avoid paying your entire tax.
Statute of Limitations
After your taxes have been assessed by the IRS, they have 10 years to collect these taxes from you. If you can somehow manage to avoid paying them taxes for 10 years all your unpaid taxes become void.
Needless to say if you don’t pay your already large tax debt you will get penalized. These penalties are nothing to laugh at and sometimes even double your original debt. By convincing the IRS that you are unable to pay, you may actually be able to remove some penalties and with a tax professional, hopefully most or all of them.
If you are unsure which debt settlement offer suits you best, why not consult with us to make sure that you get the most out of your venture with the IRS.