Are you behind on your taxes? Well, you are not alone. Every year a lot of people cannot pay their taxes in time. The reason behind it varies from person to person. There are people who find it difficult to understand all those IRS tax laws. And there are serious defaulters.
If you are an earner and have earned beyond tax limits, you are bound to pay taxes on that. This is the law of our country. If you don’t pay your taxes in time, the internal revenue system or IRS can send you notice first and then take the necessary steps to enforce the law.
Get an expert on your side
The IRS sent you a notice citing your payment delay if you are already behind on your taxes. Dealing with a federal body like IRS is not an easy job. What you need is an experienced tax expert (like a tax lawyer in Santa Monica). A professional tax expert can understand your problem much better, analyse it legally and devise a plan to make the case in your favour.
Once you appoint an expert, you don’t need to deal with the IRS on your own. Your tax expert (possibly any CA tax agency) can negotiate with the IRS on your behalf.
Negotiate to have an instalment option
Do you know IRS can offer a person instalment plans to clear his pending taxes? It is like a loan repayment option with the bank. Here, we need to pay directly to the IRS federal body instead of the bank. That doesn’t mean anyone who owes money to the IRS can have this facility. We have already said, it is up to the IRS body whether you will get that option or not.
Here comes the importance of having a tax expert (for California individual tax returns) on your side. He is the perfect person to negotiate with the IRS. Once the IRS is convinced with your appeal and you qualify certain criteria, you will have that instalment option to repay your tax debts.
Release Wage or Garnishments
The IRS governing body is almighty powerful regarding tax collection and repayments. If a person is defaulting on his regular tax returns, the IRS is capable enough to garnish all of her wages. They can garnish your social security and tax refund if you don’t pay your taxes further. You can talk to the IRS if anything happens like that.
Last Option: Bankruptcy
The last option to unshackle the debts is to declare yourself bankrupt. Although your reputation will take a toll, your debts will be gone, too, though there is no certainty about that. Chapter 7 and chapter 13 of bankruptcy codes clearly mentioned how to examine and determine whether somebody is actually bankrupt or just trying to avoid the repayments.
Remember, when a person declares bankruptcy, his financial reputation is gone. His credit score will reflect that, and getting a loan or help from any bank or financial institution would be tough. So, these are some of the options you got when you are behind on your tax repayments. Hope this article has helped you understand the basics of how the IRS works. To know more, please consult an experienced tax expert.
Hope the discussion above was insightful and will help you to have a better understanding. In case of any suggestions or queries, please feel free to share with us below in the comment section with us to make it more interesting for others.
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