Five Tips To Resolve Tax Debt

You get an intimidating feeling when you realize that you owe money to the Internal Revenue Service (IRS). Tax debt is one of the most inescapable burdens in life, and you need to resolve it to prevent agents from hounding you. However, you can avoid possible confrontation or your assets being seized as long as you manage your debt situation well. To help you minimize your contact with an IRS agent, C.A.C Financial Services has listed five tips for resolving tax debt.

Tip #1: An Installment Agreement
You can apply for a payment plan to help you pay back the IRS at the rate you can afford to avoid penalties. The best way is to check for their payment option through the online IRS portal or call on their number for any doubts or questions.

Tip #2 Currently not collectible status
This program helps you resolve your debt in case you can’t pay your taxes due to insufficient funds. It’s a useful tool to appeal to the IRS so that it’s deferred for a year or two till you get back financially.

Tip #3: Offer In Compromise
This could be a way out if you owe the IRS more than you can afford if you qualify for these payment methods. You can offer a compromise by settling to pay off by making a lump sum or a short term payment.

Tip #4: Pay Off in Full at Once
Paying off your taxes in full can rid yourself of any penalties and lowering your debt with the IRS. It’s best to ask a financial expert if this could be the best option to resolve your debt.

Tip #5: Payoff tax bill using an alternative payment
Ask your tax advisor about the alternative payment options to determine the best course of action for you in case you still face payment challenges. They will provide you with the best possible route so that you can stop an IRS levy or seizure.

For more tips on how to resolve your tax debt, reach out to C.A.C Financial Services. We are one of the leading accounting, bookkeeping, and tax preparation service in Las Vegas, offering a full range of affordable and professional financial services. We assist whether it’s for in-person or virtual individual tax preparation, personal financial planning, or small business services so that you receive complete, accurate, and confidential about your finances. Our financial assistance is available to clients across Las Vegas, Summerlin, Henderson, Spring Valley, North Las Vegas, Paradise, Enterprise, Blue Diamond, Sunrise Manor, and Whitney.

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