Taxpayers who don’t submit tax payments during the year could face serious repercussions at the end of the year. These repercussions could lead to overwhelming tax debt that requires immediate payment or strict consequences. These consequences could lead to a major financial loss for these taxpayers. The following are strategies provided by bc tax boulder to help these taxpayers.
Eliminating the Tax Payments
Taxpayers with a smaller than average tax debt could acquire total forgiveness for the debt under certain circumstances. If they are facing a current financial hardship, their tax service provider can contact the IRS with evidence of this hardship. A financial hardship could include the loss of their job or a sudden disability that prevents them from working. These circumstances could eliminate the full balance of the tax debt and clear their record with the IRS.
Setting Up an Installment Plan
Tax relief agencies can also negotiate with the Internal Revenue Service. They can acquire a settlement offer for the taxpayer to pay that is up to 50% less than the actual tax payment required. In some cases, the IRS will accept a payment plan over a lump sum payment. These opportunities enable the taxpayer to submit monthly payments to the IRS to eliminate the debt. The tax relief agency can calculate a value that is more affordable for the taxpayer and doesn’t cause a financial hardship.
Is Financing Available?
Select lenders can work with tax relief agencies and provide taxpayers with a short-term loan. These opportunities allow the taxpayer to settle the debt with the IRS and acquire an affordable payment plan. However, the taxpayer must have better than average credit ratings.
Preventing Seizure and Wage Garnishment
A wage garnishment is avoided by negotiating with the IRS. The taxpayer must take immediate action before the garnishment is accepted by their employer. Their tax consultant manages these requirements for them. Immediate action also prevents the seizure of further assets.
Taxpayers must take action as soon as they receive a tax notification from the IRS. Immediate action is the only way to stop a major financial loss. Taxpayers who need assistance with these manners contact a tax consultant today.