IRS debt can present serious financial consequences. The Internal Revenue Service charges taxpayers penalties, interest and late fees which can more than double the amount owned. People who neglect submitting annual tax returns or fail to pay outstanding taxes can be charged with tax evasion. Anyone who owes money to the government should become proactive to rectify the situation.
Solutions exist to clear IRS debt. The Internal Revenue Service will usually work with taxpayers who seek help to develop a payment plan. In some instances, the IRS will discharge a percentage of back taxes. Taxpayers who ignore IRS tax collection letters are setting their self up for unnecessary financial hardship.
The first step to resolving tax problems involves contacting the IRS taxpayer assistance center. Offices are open between the hours of 7 a.m. to 10 p.m., Monday through Friday. Individual taxpayers should call 1.800.829.1040, while business owners and self-employed taxpayers should call 1.800.829.4933.
The Internal Revenue Service allows taxpayers owing less than ,000 to establish an IRS tax payment plan online. Taxpayers must first submit Form 9465 taxpayer installment agreement request to obtain approval.
Once IRS approval is obtained, taxpayers .. more »
Debt Management
Finance News and Blog
IRS DEBT: TIPS FOR WORKING WITH THE INTERNAL REVENUE SERVICE
IRS debt can present serious financial consequences. The Internal Revenue Service charges taxpayers penalties, interest and late fees which can more than double the amount owned. People who neglect submitting annual tax returns or fail to pay outstanding taxes can be charged with tax evasion. Anyone who owes money to the government should become proactive to rectify the situation.
Solutions exist to clear IRS debt. The Internal Revenue Service will usually work with taxpayers who seek help to develop a payment plan. In some instances, the IRS will discharge a percentage of back taxes. Taxpayers who ignore IRS tax collection letters are setting their self up for unnecessary financial hardship.
The first step to resolving tax problems involves contacting the IRS taxpayer assistance center. Offices are open between the hours of 7 a.m. to 10 p.m., Monday through Friday. Individual taxpayers should call 1.800.829.1040, while business owners and self-employed taxpayers should call 1.800.829.4933.
The Internal Revenue Service allows taxpayers owing less than ,000 to establish an IRS tax payment plan online. Taxpayers must first submit Form 9465 taxpayer installment agreement request to obtain approval.
Once IRS approval is obtained, taxpayers .. more »
DEBT CONSOLIDATION COMPANIES: COMMON PITFALLS TO AVOID
It's difficult not to notice the incredible growth that there has been in companies offering debt consolidation programs and solutions over the past few years. At first, debt consolidation companies were some of the biggest advertisers on the internet and there are now more loan consolidation TV commercials than we've ever seen before. However, a great number of these debt consolidation companies are now being sued by numerous attorney generals, the IRS, and the FTC over their supposed ‘non-profit' status.
One of the worst debt consolidation companies has actually had a federal lawsuit filed against it and the FTC and five individual states have filed separate lawsuits against the company. This company declared Chapter 11 bankruptcy but the reality is that they have not gone out of business themselves, they have simply changed into so many other companies that they are most likely around in some form.
Interestingly, many companies do not call themselves ‘debt consolidation companies' anymore because of the bad press that all of the legal action against this first company generated. You may hear of ‘debt negotiation' companies or ‘debt settlement' companies who are .. more »