Community Legal Services Income tax problem,Income tax problems How to Solve Your Income Tax Problems

How to Solve Your Income Tax Problems

Income tax problem

Having problems with income taxes?

If you are having income tax problems, it is important first and foremost to contact a tax preparer or attorney who is knowledgeable about income tax problems and solutions. If you owe back state taxes or taxes to the IRS, not having a professional help you resolve these problems can result in wage garnishment, levies, and liens, which will only make paying the money back more financially burdensome to you. A professional can assess your personal income tax problem and your financial needs together, and use this to determine the best course of action to resolve your income tax problem. Some various solutions that can be offered to income tax problems are listed below.

An Installment Agreement is the general agreement for the taxpayer to pay the IRS monthly payments until the debt is paid off. There are several types of Installment Agreements. A traditional installment agreement is when the taxpayer pays the largest amount they are able to pay monthly until the debt is resolved.

A Streamline Installment Agreement is arranged when the taxpayers assessed balance is under twenty five thousand dollars, and the taxpayer can pay their entire balance within sixty months.

A Conditional Expense Installment Agreement is arranged when the taxpayer has monthly expenses in addition to their tax debt which need to continue to be paid off, but can still pay off their tax balance within sixty months.

A Stair Step Installment Agreement is arranged so that the taxpayer pays a set amount for the initial twelve months, then a larger amount for the following forty eight months, to ensure payment is fully made within sixty months.

A Partial Pay Installment Agreement is arranged when the taxpayer is not able to pay off their debt within the collections statute. The taxpayer provides full financial disclosure, and the IRS accepts the possible monthly payment.

Some other solutions to income tax problems that are not fully explained here include Penalty Abatement, Currently Non Collectible, and an Offer in Compromise. More like this blog:

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