IRS Debt Relief
Being in debt is never an optimal position to be in, especially when that debt is with the IRS, but that doesn’t have to mean that you’re stuck with this financial burden. At New Freedom Tax Relief near Phoenix, AZ, we work closely with our clients to help with their tax debt relief. Our team of tax strategists is proud to offer various debt relief options to manage unpaid taxes. Your eligibility for the different programs will depend on your unique circumstances, and we are here to help guide you through the process. With decades of experience under our belts, we are confident in our ability to help you pay the lowest taxes possible and recover from this financial setback. When dealing with the IRS and significant tax debt, it is critical that you have professionals like the team at New Freedom Tax Relief on your side.
IRS Tax Debt Relief
For many taxpayers, particularly those with tax debt, the IRS can seem like this daunting entity that is constantly looming over you, but there is a light at the end of the tunnel. With multiple options and programs available, our team can help find the best fit for your situation.
The most common solutions include:
Installment Agreements allow you to pay down your debt in regular payments over time rather than a lump sum.
Innocent Spouse Relief applies to married couples and provides protection from penalties associated with debt and fraud if you had no knowledge of the issue.
Offer In Compromise is a way to settle on a lower amount due than what you originally owed the IRS if you are unable to pay the full amount.
Currently Not Collectable applies to those who can prove they are unable to pay their debt, essentially creating a clean slate.
The eligibility requirements for these debt relief options vary greatly depending on the amount you owe, your ability to pay, and other circumstances. But, in general, to qualify for any debt relief assistance, you need to be caught up on all previous years’ taxes. Call New Freedom Tax Relief to get started today!
Offer in Compromise
If the amount of debt you owe to the IRS is more than you can afford, an offer in compromise (OIC) is a way to reach a smaller, agreed-upon amount that is acceptable by both parties. This option allows you to pay a significantly smaller debt. The IRS will consider a few factors when propositioned with an offer in compromise, including your ability to pay, your current income level, your total current expenses, and the equity you have on any assets. Additionally, if you are currently in the process of bankruptcy, the IRS will not even consider an OIC. Luckily, the team at New Freedom Tax Relief can help you with that as well. Once we’ve taken care of your bankruptcy proceedings, we can carry on with the OIC process.
There will be two options of payment during the offer in compromise debt relief process: lump sum and periodic payments. We are more than happy to offer our expertise in taxes and finances to help you make the best decision based on your current financial position and projected income.
IRS Debt Payment Plan
Once you’ve chosen, applied, and been approved for a payment plan with the IRS, you must complete the remaining steps to complete the debt relief process. You must agree to stay up-to-date with all your future tax filings, agree to the IRS’s terms, including the total amount due and any penalties, agree to periodical reassessments of your finances by the IRS, and follow through with your payments to completion.
If you don’t pay off your debt within the allotted time or attempt to make arrangements for alternate payment options, the IRS will start the process for other forms of repayment, including:
A Tax Lien is when the government takes a claim against your property if you fail to pay back your debt. And while they won’t seize your property immediately, a tax lien can cause significant problems in the future if left unresolved.
A Tax Levy is when the government legally seizes your property as a way of repaying your debt. The type of property can range from houses and cars to assets like bank funds and tax refunds.
Wage Garnishments happen when the government gains repayment through your income. By contacting your employer, they will regularly take a portion of your paycheck until your debt is fulfilled.
Our team at New Freedom Tax Relief is here to help prevent these events from happening and find a solution that benefits you. We can help you not only get relief from debt but also from the stress of owing thousands of dollars in back taxes. Finding the appropriate payment plan for your situation is critical, and we have the skills and experience to get it done.
IRS Fresh Start Program
To help taxpayers with first-time tax debt issues, the IRS created the fresh start program, which was designed to give people a chance to start over. Some of the key components in this program include: raising the base amount before federal tax liens are initiated, making installment agreements more easily accessible for small businesses, and making it easier to obtain an OIC.
The qualifications for the fresh start program include:
- Owing less than $50,000 in debt
- Ability to pay off your debt in less than 60 months
- This is your first time dealing with tax debt
- You’re up to date on all your recent tax filings
- Don’t accrue new debt
If the fresh start program is the best financial solution for you, our team at New Freedom Tax Relief will be happy to guide you through the process.
Tax Specialist Near Me
New Freedom Tax Relief is a local business near Phoenix, Arizona, dedicated to helping people resolve their tax issues. We help individual taxpayers, and business owners recover from their financial burden and find a resolution with the IRS. We have years of experience working with the IRS and the Arizona Department of Revenue to reach agreements that will provide our clients with the most benefit. We offer free, no-obligation consultations. When you need help with your tax debt, call New Freedom Tax Relief today!