Where To Find Tax Debt Help

Owing back taxes, penalties, and fines is a rough situation.  Luckily for you finding tax debt help is pretty easy.  The IRS has a lot of power to take what is owed to them.  They can garnish wages, seize assets, and take over your bank accounts.  With that much strength on their side it's easy to feel like Luke Skywalker taking on the Death Star.  It may seem impenetrable, but there are ways to get the job done.

Also on your side are the many programs that the IRS has to get their money.  These programs are pretty favorable to you.  The most ideal (yet hardest to qualify for) is call Offer In Compromise.  With this program you get the most help with tax debt, if you qualify a huge chunk of your debt is forgiven and you pay the remainder (sometimes as low as 20%).  This amount has to be paid in a lump sum or in a few large payments.  Another program allows you to pay your debt monthly.  This doesn't forgive any debt, but it does break it down into bite size amounts.

Image courtesy of Paul Keleher via Flickr.
Image courtesy of Paul Keleher via Flickr.

It may come as a surprise to know that the IRS has volunteers on hand that are there to help with your tax debt. They are a wealth of free information that can help you get out of your mess. In most circumstances they can be used without fear of having them report to the IRS, so you can feel free to allow them into your situation.

The IRS website also has tons of info about all of their programs, but it's coded in the usual tax-lingo that all of us have a hard time understanding. Be sure to check it out, though. Lots of the tax debt relief myths are cleared up on their site.

Another thing that may be extremely helpful from IRS.gov is form 1040x. This form allows you to amend prior tax returns to fix any mistakes that you made. Fill out the form and a new form 1040 and file again. This is helpful if there are deductions that you forgot to add to past tax returns. Be careful when doing this because you can expect your new tax return to be thoroughly inspected to make sure that your new info is legit.

Tax Relief Attorneys

If you can afford legal representation during your tax tribulations, this is the route I advise that you take.  It's very relieving to have someone who is actually on your side through all of this.  Tax attorneys know the laws and the best way to get income tax debt help in your particular situation.  

The best time to have a lawyer is when they can save you money.  If you take the Offer In Compromise route and save yourself a ton in penalties and fines, paying a tax attorney will be worth it.  Navigating through the paperwork that accompanies these situations and not making mistakes that can cost you a lot of money is very difficult.  Your tax attorney will do the navigation for you.

Be Careful...

Be very wary of anyone who says they can guarantee to save you huge money on your tax debt.  It's impossible to make a claim like that.  Only a fraction of people who apply for Offer In Compromise are actually approved for it.  Research any company thoroughly before signing up for their assistance.  It's your money, be smart with it.

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