Having IRS debt can be very stressful. The thought of the taxman taking your home among other assets or getting direct access to your paycheck/bank account can be horrifying. However, it is possible to get professional help with IRS debt easily as you’ll see below.
Taxpayers can take advantage of several options when dealing with tax debt. The most common is asking the IRS for a payment plan. Taxpayers can also seek bankruptcy protection.
Other options include declaring “currently not collectible” which simply means deferring repayment until you become financially capable of repaying your debt. There are benefits and cons to taking any of these options so, how do you pick the right one?
Hire a tax professional
You can only get professional help with IRS debt if you hire tax experts. Tax experts are the best-placed individuals to assist with all IRS-related matters, including repaying IRS debt and the best ways to do so.
Taxpayers who can’t choose an IRS debt repayment option can be given advice based on their unique financial situations. The best IRS debt repayment strategy will vary depending on the financial situation of a taxpayer. Tax experts can assess a taxpayer’s ability to pay and come up with a debt repayment strategy that is affordable to the taxpayer and agreeable to the IRS.
Tax experts focus on factors such as a taxpayer’s disposable income when determining how much IRS debt is repayable. They may recommend an installment or partial-pay agreement if a taxpayer’s income can cover their expenses and leave some money for IRS debt repayment. Taxpayers whose income is just enough for covering expenses can be advised to get an “offer in compromise” to reduce their IRS debt.
DIY vs. Hiring a Professional
Taxpayers who owe the IRS are advised to seek assistance from experienced tax professionals. Handling IRS debt alone and inappropriately is risky. As mentioned above, you can lose your property and income. While it may be recommendable to handle small debt amounts on your own, tax debt above $10,000 should be handled by tax professionals to find out the best possible solution.
How to choose a tax professional to help with IRS debt
Since it’s now clear that you need an expert to help you with IRS debt ranging from $10,000 and above, how do you choose a tax professional?
Experience
Experience is an important prerequisite when selecting a tax expert. Taxpayers with debt should look for a tax expert with experience in IRS debt collection issues. He/she should know how to deal with IRS officers, automated collections, IRS appeals, and more.
The tax professional you choose should have years of experience dealing with collection matters. He/she should also be knowledgeable on regulations around tax debt collection.
Authority to practice before the IRS
Most importantly, the tax professional you choose should be authorized to handle matters before the IRS i.e., be an IRS agent, tax lawyer, or certified public accountant. The IRS has a special directory you can search for a tax professional’s credentials or select qualifications.
If the professional in question is authorized to practice, they should have an identification number that can be checked to confirm authorization.
Interviewing and verifying tax professionals
Before you settle on a tax expert, it will help to interview them and find out important information such as availability, fees, the information they need, etc. Interviews are particularly important for establishing if a tax professional is truly an expert or they are simply using personal experience and research.
Even if you get professional help with IRS debt through a referral, it’s important to interview them and check their history. A tax professional’s history can be checked with the BBB (Better Business Bureau) and appropriate state agency. Thorough interviews and history checks can reveal past disciplinary actions, status of their license, or credentials.
If your tax professional is a CPA, their state’s board of accountancy should verify their status. If your tax professional is an attorney, their state’s bar association should verify. Enrolled agents can be verified via the IRS.
The above process will ensure you get professional help with IRS debt. If you don’t have the time to go through the above process, you can request a FREE consultation from us and get professional help easily. There’s no guarantee you won’t get scammed unless you work with experts like us.
