If you have IRS tax debt that you owe for past taxes, you need to work to settle that debt as soon as possible. Debt that you owe to the IRS is really serious, and it is something that you need to take care of right away. When it comes to dealing with the IRS debt, there are a few things you can do.
Make an Offer in Compromise
One thing you can do is make an offer in compromise. When you make an offer in compromise, you offer to pay a lump sum to the IRS. With this type of agreement, you are going to make a large payment over a short period to the IRS. The amount that you have to pay will be less than your total tax load. With this type of offer, the IRS allows you to pay off your back taxes at a reduced amount and considers your debt paid off. This is a very nice deal that the IRS provides to some taxpayers.
Make An Installment Agreement
You can also set up an installment agreement. With an installment agreement, you are going to set up a long-term payment plan. This allows you to set up payments, and you are able to reduce the interest that you have to pay on your back payments.
Make a Partial Payment Installment Agreement
A different choice the IRS provides to settle one's debt is a partial payment installment agreement. With this, you are going to be given a long period of time to pay off the IRS. However, you don't have to pay back the full amount that you owe.
With this type of agreement, you will slowly pay off your debt with a monthly payment. This monthly payment is going to come out of your bank account. This agreement can give you years to pay off your debt; just make sure that you make all your monthly payments.
Take Out a Loan
If you owe money to the IRS, and you otherwise have good credit, you may be able to apply for a personal loan. With a personal loan, you can settle your debt with the IRS all at once. This will allow you to get rid of this debt and stop adding interest to the amount you owe the IRS.
The IRS has various programs that you can enter into to pay off your debt. To learn more about your options, contact a company like Hammernik Associates.