Are you getting alarming notices from the Internal Revenue Service? Are they impatient for you to pay your back taxes? As a rule, nobody likes to hear from the IRS, and if you are in arrears, you are probably having some sleepless nights, wondering what to do.
The IRS is not the ogre that many people make it out to be. The agency does give taxpayers options. In fact, here are three for you to consider under the IRS Fresh Start program.
Avoiding tax liens
The Internal Revenue Service has bumped up the threshold after which taxpayers are in danger of waking up to a Notice of Federal Tax Lien. The threshold is $10,000, so if you owe less than that, a tax lien will likely not be filed against you unless there are special circumstances that warrant such a move.
Opting for installments
The IRS has expanded its program of installment payments for taxes. If you owe $50,000 or less, you can set up monthly electronic debit payments for a period of up to six years. The agency may need some financial information from you in order to approve your participation in this program, but you will not need to provide a full financial statement.
Choosing the Offer in Compromise
Through its Fresh Start program, the IRS has expanded the Offer in Compromise, an agreement that will allow you to settle your tax obligation for less than the amount due. More taxpayers are now eligible for the offer, but there are some conditions, such as the amount agreed upon must be paid within a reasonable length of time.
Seeking legal help
If it makes you feel any better, you are not the only person having restless nights over back taxes. According to a 2014 article in USA Today, 318,462 federal employees were in the same boat, and possibly still are. Reach out to an attorney experienced with tax law to help you resolve your tax debt and get back to sleep