IRS Interest Alert: Prevent IRS Interest, Pay your Tax Debt with an Offer in Compromise or an Installment Agreement
IRS Interest Growing and Growing: Your tax debt is growing, thanks to IRS Interest rates. If you owe over $25,000 in debt, it probably didn't start that way. A small debt can grow to being a hefty one, and fast. Why? Because the IRS imposes harsh penalty and IRS interest fees. And they add up each and every month. If you don't act fast, your debt will grow larger still. Avoid IRS Interest and get rid of Tax Debt with Offer in Compromise or Installment Agreement help.
Pay Monthly: Installment Agreement You don't have to pay the entire amount you owe in a lump sum. You can pay the IRS monthly with an "Installment Agreement". But beware. The Installment Agreement program is a binding contract. You are agreeing to pay a set monthly amount until your debt is paid in full. For instance, if say you can pay off your $25,000 dollar Tax Debt for three years, that's $694.44 per month (Plus penalties and IRS Interest.) An Installment Agreement is relatively easy to apply for, simply fill out IRS Form 9465 "Installment Agreement Request" and you're well on your way. Most Installment Agreements will be accepted by the IRS, but you have to be cautious once you're accepted. With an IRS Installment Agreement you'll be expected to pay the IRS on time every month or face severe consequences.
Settle It: Offer in Compromise You can pay less than you owe. The "Offer in Compromise" program allows you to settle your debt. It's very hard to qualify for an "Offer in Compromise". You'll be required to painstakingly fill out pages of paperwork with supporting documents to prove you deserve to settle your debt with the Offer in Compromise. It will be you responsibility to prove that you cannot possible pay the IRS back before the statute of limitations on your debt expires. An "Offer in Compromise" is only extended to those with hardship situations that prevent them from paying the IRS.
Prove Hardship: Buy some time. Maybe you've got no job, no money, and no assets. You could qualify for a "Hardship" or "Currently not Collectible" status. If you do, the IRS will give from six months to one year to straighten out your finances. But watch out, once the six month period is up, the collection efforts will continue full force. At that point you may have bought yourself enough time to gather the necessary paperwork for an Offer in Compromise or an Installment Agreement.
Final Warning: If you've been ignoring your IRS debt, you're used to getting notices in the mail. But watch out for a notice that says " Final Notice of Levy". If you get this letter in the mail, you can kiss your bank account or your paycheck goodbye. Uncle Sam is tired of waiting. He wants his money. Act fast to make sure your money isn't seized by force. Utilize one of the various payment methods available (like an Offer in Compromise or an Installment Agreement) to get rid of IR Debt and IRS Interest issues.
Exclusive Club: IRS Interest continues to accrue, and it hurts. I'm not going to mislead you. It's hard to qualify for an Installment Agreement and especially for an Offer in Compromise. You will have to prove without a shadow of a doubt that paying your debt will cause you to go without basic necessities. Double check your paperwork and make sure everything is filled out accurately. One mistake and your request for an Offer in Compromise or an Installment Agreement could be denied.
