Explore Options for IRS Debt Forgiveness Today
Being in debt is never an optimal position to be in, especially when that debt is with the IRS, but that doesn’t have to mean that you’re stuck with this financial burden. At LBS Tax Services near Phoenix, AZ, we work closely with our clients to help with their tax debt relief. Our team of tax strategists is proud to offer various debt relief options to manage unpaid taxes. Your eligibility for the different programs will depend on your unique circumstances, and we are here to help guide you through the process. With decades of experience under our belts, we are confident in our ability to help you pay the lowest taxes possible and recover from this financial setback. When dealing with the IRS and significant tax debt, it is critical that you have professionals like the team at LBS Tax on your side.
Is IRS Tax Debt Relief Available for Me?
For many taxpayers, particularly those with tax debt, the IRS can seem like a daunting entity constantly looming over them, but there is a light at the end of the tunnel. With multiple options and programs available, our team can help you find the best fit for your situation.
The most common solutions include:
Installment Agreements allow you to pay down your debt regularly over time rather than in a lump sum.
Innocent Spouse Relief applies to married couples and protects them from penalties associated with debt and fraud if they do not know the issue.
Offer in Compromise is a way to settle a lower amount due than what you originally owed the IRS if you cannot pay the total amount.
Currently, Not Collectable applies to those who can prove they cannot pay their debt, creating a clean slate.
The eligibility requirements for these debt relief options vary greatly depending on the amount you owe, your ability to pay, and other circumstances. But, in general, to qualify for any debt relief assistance, you need to be caught up on all previous years’ taxes. Call LBS Tax Services to get started today!
Offer in Compromise
If the amount of debt you owe to the IRS is more than you can afford, an Offer in Compromise (OIC) is a way to reach a smaller, agreed-upon amount that is acceptable by both parties. This option allows you to pay a significantly smaller debt. When propositioned with an Offer in Compromise, the IRS will consider a few factors, including your ability to pay, your current income level, your total current expenses, and the equity you have on any assets. Additionally, the IRS will not even consider an OIC if you are currently in bankruptcy. Luckily, the LBS Tax team can help you with that as well. We can continue the OIC process once we’ve taken care of your bankruptcy proceedings.
During the offer-in-compromise debt relief process, there will be two payment options: lump sum and periodic payments. We are happy to offer our expertise in taxes and finances to help you make the best decision based on your current financial position and projected income.
IRS Debt Payment Plan
Once you’ve chosen, applied for, and been approved for a payment plan with the IRS, you must complete the remaining steps to complete the debt relief process. You must agree to stay up-to-date with all your future tax filings, agree to the IRS’s terms, including the total amount due and any penalties, agree to periodic reassessments of your finances by the IRS, and follow through with your payments to completion.
If you don’t pay off your debt within the allotted time or attempt to make arrangements for alternate payment options, the IRS will start the process for other forms of repayment, including:
A Tax Lien is when the government takes a claim against your property if you fail to pay back your debt. And while they won’t seize your property immediately, a tax lien can cause significant problems in the future if left unresolved.
A Tax Levy occurs when the government legally seizes your property to repay your debt. The type of property can range from houses and cars to assets like bank funds and tax refunds.
Wage Garnishments happen when the government gains repayment through your income. By contacting your employer, they will regularly take a portion of your paycheck until your debt is fulfilled.
Our team at LBS Tax is here to help prevent these events from happening and find a solution that benefits you. We can help you get relief from debt and the stress of owing thousands of dollars in back taxes. Finding the appropriate payment plan for your situation is critical; we have the skills and experience to complete it.
IRS Fresh Start Program
To help taxpayers with first-time tax debt issues, the IRS created the Fresh Start program, which allows people to start over. Some critical components of this program include raising the base amount before federal tax liens are initiated, making installment agreements more easily accessible for small businesses, and making it easier to obtain an OIC.
The qualifications for the fresh start program include:
- Owing less than $50,000 in debt
- Ability to pay off your debt in less than 60 months
- This is your first time dealing with tax debt
- You’re up to date on all your recent tax filings
- Don’t accrue new debt
If the Fresh Start program is the best financial solution for you, our LBS Tax team will be happy to guide you through the process.
Find a Tax Specialist Near Me
LBS Tax Services is a local business near Phoenix, Arizona, dedicated to helping people resolve their tax issues. We support individual taxpayers and business owners in recovering from their financial burden and finding a resolution with the IRS. We have years of experience working with the IRS and the Arizona Department of Revenue to reach agreements that benefit our clients the most. We offer free, no-obligation consultations. When you need help with your tax debt, call LBS Tax Services today!