The goal of the Internal Revenue Service is to collect as much as they can from taxpayers without using coercion or intimidation; however, no matter how nice their approach is, they end up losing the battle. If we have tax debt problems, we are accountable to the Internal Revenue Service. Likewise, the Internal Revenue Service is required to follow government guidelines.
One of the reasons why the Internal Revenue Service becomes ruthless and uses threats of wage garnishments, bank levies, or tax liens, is to collect the payments. As a taxpayer and a citizen of this country, we have to be responsible and do our part to help our country and make it stronger by fulfilling our obligation to pay our taxes.
The question is – what can we do to resolve our tax debt? Below are some IRS debt settlement options:
- Paying the correct amount of taxes
- Use instalment agreements so that we can pay the Internal Revenue Service monthly
- Find a way to reduce or eliminate our tax debt problems without using bankruptcy as a way out of our tax obligation
- Using an offer in compromise approach, which can settle our tax debt problems for good
It can help if you have these kinds of arrangements with the Internal Revenue Service but what if we are unable to commit to these arrangements despite our desire to become compliant? What will be our IRS debt settlement options?
- We can ask the Internal Revenue Service to give us time by suspending their collection process until we are able to pay them in full or pursue a “currently not collectible” status
- We can also wait until the 10 year statute of limitations is up, which would end the Internal Revenue Service’s pursuit to use scare tactics in an effort to resolve and collect our tax debt
Whether we use IRS debt settlements or file bankruptcy, the important thing is that we must honor our obligation to our government without using excuses. It may be difficult to achieve relief if the Internal Revenue Service is seen as our enemy, but as long as our goal is to resolve our tax debt problems, then we must accept our obligation and face our enemy so that we can become compliant and ultimately be free from the tax debt.