Strategies For Taming Your Tax Debt In 2019

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With a new year comes new opportunities to get your finances back on track. If you’ve suffered tax issues in the past, it’s time to tackle the problem head-on. Your hard work now could pay considerable dividends down the road. The following are a few top strategies for getting your tax situation under control:

Seek an Offer in Compromise

Depending on your situation, you could be eligible for the IRS Offer in Compromise (OIC). This program allows you to settle your current tax liabilities for less than you actually owe, provided you qualify and agree to make payment arrangements with the IRS.

Apply For an Installment Agreement

If you don’t qualify for an Offer in Compromise, it’s worth trying for an installment agreement, which will help you divide your current tax debt into manageable chunks. The IRS offers a variety of short-term and long-term payment plans; depending on your income, you may even qualify for waived application fees.

If you’re able to pay off your debt with a short-term plan, take advantage of the reduced application fee. If you struggle to make payments on time, opt for direct deposit, which is incentivized by the IRS.

Seek Not Collectible Status

This is definitely not the preferred option for handling tax debt, but in dire situations, it may help. If your account is deemed ‘Currently Not Collectible,’ you can avoid levies, garnished wages, and a variety of other penalties that would otherwise typically be imposed by the IRS. You will not, however, avoid interest and late fees.

Don’t wait for your tax situation to improve; work with Highland Tax Resolution to get your tax debt under control. From installment agreements to Offer in Compromise, a variety of options may be available; call 720-398-6088 today to learn more.