Obviously, owing a large amount of money to the IRS is not a situation anyone wants to be in. But for those who are facing this intimidating and sometimes uncertain difficulty, there are opportunities to make the process easier, less embarrassing and even less costly.
As your locally owned and operated small tax service, Accounting & Tax Professionals, PLC is proud to offer assistance with IRS relief in Des Moines, IA. If you come to us for help, we will walk you through the three major components of IRS relief: tax liens, installed payments and offers in compromise. We will then work with you to determine which of them will work best for your current debt situation.
Here is a closer look at the three different components of debt relief.
Tax liens
Tax liens are, essentially, attempts by the IRS to gain back the money you owe by taking control of some or all of your assets. If you own real estate or an automobile, the IRS might place a lien on that, and might even go so far as to take it away from you. While seizing a primary residence or automobile is uncommon, the IRS has been known to take secondary residences or vehicles.
Beyond losing valuable property, a tax lien can also place an even more significant and long-lasting burden on you: a mark on your credit report. These marks typically last seven years or longer, even if you pay the IRS back before that time. It will have such an impact on your credit report that you might have trouble securing a loan or purchasing big items on credit.
For these reasons, we often will do everything we can to help our clients avoid having a lien placed on them, which typically occurs if you owe the IRS $10,000 or more.
Installed payments
A much better alternative to a tax lien, installed payments give you the opportunity to pay off the IRS in increments every month, similar to paying off a mortgage or student loan debt.
You can set up this payment so that it comes directly from your debit card, and it is very easy to do if you owe $50,000 or less and will be able to pay it off in six years or fewer. If you owe more than that or need more time, you will have to first provide the IRS with a financial statement.
Offers in compromise
Finally, an offer in compromise is basically debt forgiveness from the IRS. If you are able to prove that you do not have the income or assets to pay off your debt within a reasonable amount of time, the IRS will work with you to calculate a sum that is reasonable, and reduce your debt down to that amount.
When you come to Accounting & Tax Professionals, PLC for help with debt relief in Des Moines, IA, we will be happy to walk you through the above options and help find the best choice for you. Our primary goal is always to help you achieve financial stability and sound peace of mind. Call us today for the assistance you deserve.