Like clockwork, tax season is upon us. But for taxpayers who owe multi-year payments plus mounting penalties, it’s an especially expensive and stressful time of year.
Owing money to the IRS can be frightening, to say the least. For each day that goes by, more interest and penalties may accrue, wreaking havoc on your finances. Even if you think there’s no hope in paying off what’s owed, there are repayment options worth exploring that can help you get out of debt for a reduced amount.
The Offer in Compromise
If you owe back taxes to the IRS or have years of unfiled returns, you may qualify for programs that can help pay off your debt faster and with minimal headaches. An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS, settling your liabilities for less than the full amount owed. While this option is widely known, it’s often considered a complicated part of the tax code.
Without an experienced tax resolution specialist to navigate the ins and outs of an OIC, the IRS may turn down your application, and the amount you’re obligated to pay could keep climbing. A tax pro also has extensive knowledge of other IRS programs and payment options, which may better suit your personal situation.
There’s no time like the present to get back on track
Few things in life are as frightening as owing money to the IRS, but the faster you move, the sooner you can work on paying off your debt. If you’re in tax trouble, reach out to our NJ tax resolution firm for guidance on how to best proceed. Contact Magone & Company today at (973) 301-2300.