In 1787, the United States Constitution was adopted, and gave permission to the federal government to lay and collect taxes, but required that the federal government delegate funds to states based on population. Today, federal taxes vary anywhere from 10 to nearly 40 percent of taxable income, and many of these tax returns are filed by one of the 1.2 million tax preparers in the United States. Individuals that owe back taxes to IRS can run into many legal woes, but there are some options for people who owe irs money.
If you owe back taxes to IRS, there are several ways to pay them back. You can agree to pay back your debts a little bit each month with an installment agreement. There are various types of installment plans including guaranteed installment agreements, streamlined installment agreements, partial payment installment agreements, and “non streamlined” installment agreements. Each installment plan has its own set of qualifications and payback requirements. Owing back taxes is a serious problem, and an installment agreement may be a good option for you.
Owe back taxes to IRS, and do not think that an installment agreement will work for you? An offer in compromise may be your next option, which allows individuals to settle their debts for less than what they actually owe to the IRS. An offer in compromise usually requires that debtors make a large lump sum payment, or negotiate a short term payment plan to pay off the IRS, but at a reduced dollar amount. Owe back taxes to IRS is a stressful situation. Get it taken care of sooner rather than later!
Other ways to resolve owe back taxes to irs? The IRS offers a “not currently collectible” program, which is an agreement made by the IRS not to collect tax debts for a certain amount of time, usually a year. This is a far better option than, say, having the IRS get permission from a federal magistrate to levy your home!
If you owe back taxes to IRS, you may have to file for bankruptcy. A Chapter 7 or Chapter 13 bankruptcy petition may discharge your tax debts, but there are many strict rules to this process. You have to play your cards right, especially if they are playing cards from Alabama, with that 10 cent tax!