Settling tax debt is never easy especially if you don’t know how. There are several ways for you to be able to settle your tax debt. You just have to consider these options carefully so that you can determine the best way to handle your tax debt according your financial status. If you want to know how to settle tax debt, then this article might be able to help.
It would be best if you settle your tax debt in full. If you have a lot of debts, you will have one less debt to worry about after you settle your tax debt. This would not be a problem if you have enough funds to pay the debt in full. If you don’t have the money, you may want to consider borrowing money from your friends or relatives. Or perhaps you can sell some of the things you have at home that you no longer need.
If it seems that you would need more time to get the money needed to pay the full amount you owe, you can ask for a payment extension. You can get up to 45 days of payment extension. This is the longest time that the IRS can give you. But if you need more time, you can request another 45-day extension after the previous payment extension. However, this may mean additional interests and fees.
If paying your tax debt in full is not possible for you, another way of settling tax debt is by requesting for an installment agreement. An installment agreement may be easier for you as you can settle your tax debt by making monthly payments. If you want to apply for an installment agreement, you just have to fill out the IRS form 9465 or you can fill out the payment agreement application online through the IRS website. You may also want to apply for an offer in compromise. This is an offer you will make with the IRS to lower the total amount you owe and then you would pay it in full. Consider all these options carefully to know which is the most suitable for you.
For more information on how to settle your tax debts, visit SettleTaxDebt.org today.