The write-off of the IRS debt becomes very important when a taxpayer finds that he cannot pay off his tax debt all at once. Living under the burden of tax debt is a very stressful experience for taxpayers and their families. All normal activities usually have to be limited and meeting expenses for basic needs can sometimes be a problem. The IRS debt relief program has been available to taxpayers for years. The goal is to allow taxpayers to pay off their tax debt at a lower amount than what is actually owed. To a large extent the taxpayer’s financial condition influences the particular debt relief strategy that will be adopted. In fact, once negotiations with the IRS are complete, taxpayers may be given the option of a monthly or quarterly installment payment plan.
However, the installment option is more expensive than the lump sum payment method because interest is charged on the previous resolution. But when it’s not possible to settle a large amount of tax debt at once, an installment plan is the only viable option. It is very difficult for most taxpayers in the US to navigate the IRS debt settlement guidelines. The average taxpayer does not understand the intricacies of tax laws; therefore, seeking the help of a qualified tax expert is the way to go. Underestimating the legality of taxes is a dangerous thing to do and can put taxpayers in greater danger.
If defaulters have received an IRS notice, they should take advantage of the IRS debt relief program as soon as possible. In many situations tax breaks are only offered for a short period of time – usually 2 to 4 months. The exact time it takes to arrive at the right tax relief vehicle largely depends on the complexity of the particular tax issue. The IRS levy is a very difficult thing to deal with; hence, it is better to avoid it at all costs. If it’s too late, property confiscation, bank levies, or tax collections can all be reversed, but the help of a highly competent tax attorney is required.
With the prevailing downturn in the US and the global economy, more and more Americans are failing to pay their IRS taxes. Therefore, people are advised to seek IRS debt relief as soon as possible, rather than wasting time or procrastinating unnecessarily. There is a special IRS tax debt relief program known as OKI (Offer in Compromise). According to Federal law, the IRS is empowered to arrive at a negotiated settlement with overburdened taxpayers so that the debt can be cleared for a lower amount than actually owed.