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.
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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.
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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.
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) 484-0829.