Do's and Don'ts of IRS Debt Relief
  • March 2, 2020
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Have standing debt with the IRS and finding it difficult to pay it off? When dealing with serious IRS debt, you must consider settlement as it is a simple way to get out of the sticky situation. Negotiating to pay less than what you owe provides quick IRS debt relief for many taxpayers. The big question is whether or not debt settlement is really the best IRS debt relief avenue. The advice shared in this blog will help you know how to best work through your IRS debt problems.

Do’s And Don’ts of IRS Debt Relief

Do Consider The Impact Of IRS Debt Relief On Your Financials

Debt settlement is a financial resort that should be considered with caution. While it might be the best option for some, in some cases it can do more harm than good. If your debt forgiveness surpasses $600, your settlement will be taxed. Additionally, you’ll have to factor in any fees plus interest. In some cases, settling your debt can end up being pretty expensive.

Related Blog: Self-Employment Taxes You Can’t Afford to Ignore

Another negative consequence of IRS debt relief through debt settlement is its impact on your credit score. A history of debt settlement can prevent you from getting a loan in the future. And when you do get credit approved, you’ll probably get higher interest rates. Even if debt settlement sounds attractive as an immediate solution, it is vital to consider its long term effects. Only after weighing both pros and cons with the help of an IRS debt attorney will you be able to decide on the best course of action.

Don’t Wait To Take Action

IRS debt relief options are more accessible to those that take early action. As time passes, your account can be charged-off. This lets lenders know that you’re not responsible and aren’t likely to pay back borrowed money. Taking action early gives you a better chance of settling your IRS debt in more favorable conditions. Early action also broadens the IRS debt relief options available to you. You can even work out a debt management plan, that allows you to resolve your debt without affecting your credit score just like what you get with debt forgiveness.

Be Real With Yourself

If you have decided to seek an IRS debt settlement plan, make sure it’s one that fits your payment ability. Signing up to make payments that surpass your ability is setting yourself up for failure. Make sure you go for a plan that involves payments to which you can really stick.

Related Blog: IRS More Willing to Compromise Than Ever

Don’t Be Afraid To Ask For Help

The best way to get IRS debt relief is with the aid of a tax debt attorney. A qualified professional has the necessary experience to help you find a way out of IRS debt. After analyzing your specific case, a tax debt attorney will help you identify the best IRS debt relief plan to pursue.

Last Word

If you have a standing debt with the IRS, proceeding with caution and professional help is a must. A tax law attorney can help you find the best approach to IRS debt relief. Whether you want to find a way to manage your debt or access a settlement plan, we are here to help. Get started with a free consultation from a tax debt attorney at Nick Nemeth’s law offices today. Just call us at (972) 426-2553.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
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Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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