IRS Tax Debt Reduction Los Angeles CA

1. First of all, consider hiring a tax professional (CPA or tax lawyer) to help you assess your situation and determine the best course for reducing your IRS tax debt. Visit our article about how to get an IRS tax lawyer.
   
   
2. Offer in Compromise. The IRS employs elaborate methods for calculating the amount of tax debt they can expect to extract from an individual before the statutory period expires. Every action they take against an individual bears a cost to them as well. If, with the help of a tax professional, you can propose a debt payment that is less than the total amount of tax debt but greater than the amount they can expect to gain, you can successfully reduce your IRS tax debt to a more agreeable level. Such a proposal is called an Offer in Compromise. Seek the help of a tax professional when you attempt this tax debt reduction technique; it is definitely a challenge to convince the IRS to accept an Offer in Compromise, but still a great tool in your effort to reduce tax debt. If your Offer in Compromise fails, try to establish an installment agreement.
   
   
3. Installment agreement. This is an agreement established between the IRS and, ideally, your tax professional. Essentially, you agree to pay your total IRS tax debt (including interest and penalties) by paying a smaller amount each month. Following this plan, you gradually erase your tax debt. You really should have either a tax lawyer or a CPA representing you if your goal is to convince the IRS to accept a monthly payment that is lower than what you can technically afford. But if your tax debt is less than $10,000, you can determine the size of the monthly payment and the IRS cannot argue as long as this monthly rate allows you to pay your tax debt fully within a three year period.
   
   ...

Click here to read the rest of the article at HowToDoThings.com

Author: Staff Writer