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How to Settle Your Tax Debts

How to Settle Your Tax Debts

It happens to all of us. We get behind on our taxes when we have to deal with all of our other bills. We might not be able to handle paying for rent or the mortgage, gas, food, utilities, and for children while also trying to pay off the amount that we owe the IRS at the all the time. But despite your inability of being able to pay for your tax bill, the IRS is still going to come over the tax debt and you will be required to pay them back as soon as possible.


If you are looking to figure out how to pay off your tax debt and don’t know where to turn, make sure to contact the professionals at David C. Ellwanger, CPA, P.C. We have the expertise to help you figure out how much you owe the IRS, get the amount reduced or spread out over several months instead of in a lump sum, and get the IRS off your back right away.


What happens when I  don’t pay my taxes?

It is always best if you choose to pay off your taxes as soon as possible when they are due. This is going to keep the fees and interest rates down much lower than if you put the payments off or you just ignore the tax debt in the first place.


The first thing that you will notice with missing out on your tax debt is that the IRS will place late fees as well as interest on the amount that you owe. If you pay them back within a months of the debt going late, it is not such a big deal. But, if you end up waiting too long, these fees are going to get large. If you wait too long for the IRS to get their money, you will have to deal with other issues including levies placed on your property and garnishment of your wages as well as any future tax refunds that you are owed.


If you end up owing a tax debt to the IRS and are worried about how you are going to take care of it with your current income, contact the professionals at David C. Ellwanger as soon as possible. We will be able to work with you in order to find the best results possible when it comes to taking care of this debt and getting things squared away with the IRS.


Methods to pay off  the tax debt

There are several methods that are available to help you to pay off your tax debt. In some cases, if the bill is too large for your current income or you have faced a financial hardship, it is possible to work with the IRS in order to come up with an offer of compromise. This is when the IRS will work with you to lower the amount of tax debt that you owe them in the first place. You can then pay the money back in one lump sum or separate it out into payments for up to five years depending on your agreement.


In some cases, you will not be able to get an offer of compromise with the IRS. You may make too much money or have some other issues that make them unwilling to offer this service to you. In that case, the professionals at David C. Ellwanger will be able to work with you to come up with a payment plan that can fit into your budget while still getting the tax debt paid off. We can then submit it to the IRS for approval, making it much better to pay off the debt rather than having to pay it all off at once.


Finding a  professional to make it easier

Often, dealing with the IRS on your own can be a challenge. You may know exactly what you need to have done, but once you get on the phone and the representative starts working with you, it is easy to become tongue tied and say some things that you should not tell them. Working with the IRS may seem like a good idea at the time, but usually this can bring about more trouble and make things more difficult when dealing with your tax debt.


Rather than trying to handle all of this yourself, consider contacting the professionals at David C. Ellwanger. We have worked with the IRS on tax debts in the past and know just how to work with them to come up with a solution that is going to make things easier on you. We will sit down with you and discuss all of the options that are available in your circumstance. We can then talk on your behalf to the IRS to ensure that you are getting the best deal possible to get that tax debt paid off.


Dealing with your tax debt can seem like a never ending issue. You may worry that you are never going to be able to get the amount paid off, and all the fees and interest that the IRS places on you make the situation worse. Rather than facing it all on your own, make sure to contact David Ellwanger at David C. Ellwanger, CPA, P.C. from Henrico, VA to help you out. We have experience helping those with tax debt get it all under control to help you finally pay off the IRS.