What Is Tax Debt?
If you miss paying or filing your taxes, make a mistake on your tax return, or the IRS changes your taxes, and you owe money, you have tax debt. It's a common issue — in 2017, over 800,000 Americans had tax debt. Don't worry, though; the IRS offers ways to fix this. You can sort out your tax debt by correcting your tax return or setting up a payment plan or a deal with the IRS to pay less. These options can help reduce or even clear what you owe.
Steps for Finding Tax Debt Relief
If you owe taxes to the IRS, obtaining tax debt relief involves several key steps:
Clarify the Problem: Determine the exact amount you owe and check if the IRS has placed any holds or liens on your assets.
Identify the Root Cause: Assess whether errors in your return, insufficient income, or lack of collateral assets contributed to the issue.
Determine a Solution: Select the debt relief program most suitable for your specific circumstances.
Develop Your Case: Prepare a detailed explanation of why you're unable to pay the tax debt, along with your proposed resolution plan.
Submit Your Case: Present your prepared case to the IRS for review.
Obtain Tax Relief: Upon approval, receive the relief specific to the program you applied for.