Owing the IRS money is stressful and a bit frightening if one does not know how to reduce IRS tax debt. Fortunately, there are steps to do just that. For more information on the topic of reducing IRS tax debt, get in touch with a consumer resource website such as Credit-yogi
Pittsfield, MA -- (SBWIRE) -- 02/05/2013 -- The following will point out a few of them, including
- Handling the problem alone
- Filing late and adding amendments
- Devise an installment plan
- Lump sum payment
Contact the IRS Oneself
Depending on how much one owes, one may be able to work something out with the IRS by oneself. It is most feasible to do this when one owes $10,000 or less. One can choose any of a number of ways to reduce IRS tax debt, to be discussed in more detail further on. If one owes $10,000 - $25,000. It may be a wiser choice to call in a professional tax accountant to go over one’s returns for accuracy and to help determine if one can afford the payments for the debt.
File the Return Late
The later one files, the better one’s position is to make use of all of the tax debt reductions one is entitled to, resulting in one solution to how to reduce IRS tax debt. This is called filing back taxes and is perfectly legal. If, however, one has already filed the return, a tax professional should go over it to make sure no deductions were missed and that they are accurate. It takes a lot of work to make amendments; a great deal of paperwork is involved, as is much reprocessing. One must also have proof to back up the request for amendment, lest one face an IRS audit.
Work out an Installment Plan
One option to help reduce IRS tax debt is to develop an installment plan to pay what is owed. This is an agreement to make a specific payment every month until the debt is eradicated. If one cannot make said payment, one must contact the IRS to make a new arrangement.
People who are looking for irs tax debt solution can request with Credit-yogi for more help
Make a Partial Payment
The IRS has recently added this option as an answer to how to reduce IRS tax debt. The idea is to lower one’s payments in such a manner that one can afford them, and to lengthen the amount of repayment time one has. It is required that one must make a sizable partial or lump sum payment initially; after that, the payments are reduced so one can handle them.
Credit-yogi.com well-established website located in Pittsfield, Massachusetts has a full complement of attorneys and financial experts behind it and is a free service. For a no-cost initial consultation, dial 800-964-9644.
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