Which Tax Debt Settlement Works Best For You?
Tax Debt Settlement Options and Qualifications
If you somehow find yourself in an unlikely position of owing the Internal Revenue Service (IRS) more money than you can possibly afford, then it is time to consider all available options for your tax debt settlement and repayments. A word of caution: if you are unable to pay your tax debt settlement within the next ten years, or the specified collection stature, then the IRS is given the get-go to claim your properties and assets as payment to your debts. If you want to avoid that, here are some of your options:
1. Installment Agreement – you are able to repay your tax debt settlement in sets monthly payments. You are given an affordable amount to pay each month, until you are able to settle your bills. Unfortunately, you will be wasting more money because there are penalties and interests to consider. Though this is one of the most famous methods utilized by taxpayers, it also takes them longer periods of time to fulfill their payments.
2. Paying in Full – if you can somewhat pay in full, then this is the best choice for you. If you do not have the cash, then you can raise funds through the help of your friends, family, and other financial institutions. By paying in full, you are eradicating the possibility of more charges and penalties resulting; a small unpaid amount could amass to a large burden creating a harder tax debt settlement arrangement.
3. Credit Card – if your credit limit can handle your IRS tax debt settlement amount, or if you can live with your credit card’s interest, then use your credit card to pay off your existing IRS tax debts. Unlike the IRS, credit cards cannot impose deductions on your wages, or to levy against your bank account.
4. Offer in Compromise (OIC) – among the four choices, this is perhaps the most attractive to Americans, especially if you do not have the means to repay the accumulated debt. Only few Americans are eligible for OIC. To be one of them, you must meet one of the following criteria:
* Cannot pay – if you are sure that you cannot pay your tax debt settlement within the collection stature, file for an OIC under cannot pay. The IRS reviews your capability to pay, considering every factor such as health and age.
* Unaccountability – if you can somewhat prove that you are not liable for the debt accumulated, then you can file for an uncertainty as to liability.
* Economic hardship – if unseen forces suddenly limit you from working, such as sudden disabling and serious illness, natural disasters, among many others, you will be given an Offer. Offers are plans which decrease the total debt, which in turn saves you more money. Once you are made an offer, the IRS tax debt is cleared.
* Not collectible – The IRS agrees to a permanent or temporary release of its collection, depending on your circumstances. If you do not have the means to pay, then you cannot pay at all cost.
If you believe you qualify for any of the tax debt settlement repayments above, then do not hesitate to contact tax debt experts about their opinion. Now you do know that you do not have the suffer for the accumulated interest and penalties. Find how you can take charge of the situation, and turn your IRS debts around.
Tax Software Basics
Choosing Tax Software Program
Each year brings millions of Americans who rely on professional tax preparers to organize their taxes. These professional tax preparers may be in the form of Certified Public Accountants (CPAs) and tax agencies. Though these professionals reduce the risk of mistakes and any discrepancies in the report, their charges are often somewhat expensive. Due to this, many Americans opt to file their federal and state tax returns on their own. Though the traditional way to prepare taxes is through paper tax forms, some citizens now rely on tax software programs in preparing their taxes and submitting it electronically to the state and federal taxing agencies.
Similar to all software programs, each software has its advantages and disadvantages. In a nutshell, software programs enable taxpayers to prepare their taxes in an efficient and orderly manner. The most popular types of tax software include Turbo Tax, TaxAct, and TaxCut, among many others. Each program offers several versions such as standard, deluxe, and premium version. Each software offers different features and services; however, all of them contain federal income tax return forms. Depending on the software version, it can contain both the state and federal income tax return forms. There are also versions which can assist in tax deductions and credits for bigger tax savings.
The Advantages of Using Tax Software Programs
Tax software is designed to be user friendly in order to cater to all Americans. These programs usually offer step-by-step processes which give taxpayers the opportunity to finish preparing their taxes in half the time than it takes on traditional written method. The software also enables taxpayers to transfer the data from a state tax return to a federal return. This saves time in filing, as well as assures the consistency of the information, since both forms contain the same data.
Most users comment on how they are able to save more money in using tax software programs than by enlisting the services of professionals. Tax preparers often charge more than $100 for preparing a citizen’s tax returns; tax software programs range are often free, and if the user wants better versions, then these programs are available for $60 or more.
Lastly, tax software programs enable users to file their
Which IRS Tax Debt Repayment Method Works Best For You?
If you somehow find yourself in an unlikely position of owing the Internal Revenue Service (IRS) more money than you can possibly afford, then it is time to consider all available options for repayments. A word of caution: if you are unable to pay within the next ten years, or the specified collection stature, then the IRS is given the get-go to claim your properties and assets as payment to your debts. If you want to avoid that, here are some of your options:
1. Installment Agreement – you are able to repay your debt in sets monthly payments. You are given an affordable amount to pay each month, until you are able to settle your bills. Unfortunately, you will be wasting more money because there are penalties and interests to consider. Though this is one of the most famous methods utilized by taxpayers, it also takes them longer periods of time to fulfill their payments.
2. Paying in Full – if you can somewhat pay in full, then this is the best choice for you. If you do not have the cash, then you can raise funds through the help of your friends, family, and other financial institutions. By paying in full, you are eradicating the possibility of more charges and penalties.
3. Credit Card – if your credit limit can handle your IRS tax debt, or if you can live with your credit card’s interest, then use your credit card to pay off your existing IRS tax debts. Unlike the IRS, credit cards cannot impose deductions on your wages, or to levy against your bank account.
4. Offer in Compromise (OIC) – among the four choices, this is perhaps the most attractive to Americans, especially if you do not have the means to repay the accumulated debt. Only few Americans are eligible for OIC. To be one of them, you must meet one of the following criteria
a. Cannot pay – if you are sure that you cannot pay your debt within the collection stature, file for an OIC under cannot pay. The IRS reviews your capability to pay, considering every factor such as health and age.
b. Unaccountability – if you can somewhat prove that you are not liable for the debt accumulated, then you can file for an uncertainty as to liability.
c. Economic hardship – if unseen forces suddenly limit you from working, such as sudden disabling and serious illness, natural disasters, among many others, you will be given an Offer. Offers are plans which decrease the total debt, which in turn saves you more money. Once you are made an offer, the IRS tax debt is cleared.
d. Not collectible – The IRS agrees to a permanent or temporary release of its collection, depending on your circumstances. If you do not have the means to pay, then you cannot pay at all cost.
If you believe you qualify for any of the tax debt repayments above, then do not hesitate to contact tax debt experts about their opinion. Now you do know that you do not have the suffer for the accumulated interest and penalties. Find how you can take charge of the situation, and turn your IRS debts around.
taxes electronically, which mean that the taxes are filed faster, and are processed quicker for faster refunds. If for some reason a user is uncomfortable with e-filing, then they are given the option to print their forms.
Disadvantages of Using Tax Software Programs
When it comes to disadvantages, some tax software programs require additional payment for e-filing. There are also those which has hidden fees.
When it comes to tax software programs, it is important that the user first check the reviews for a particular product before buying it. Due to its numerous advantages, one of the most famous disadvantages of tax software falls on hidden charges. With the right program for the right price, Americans can finally file their taxes with ease and confidence.
