Don't Delay In Managing IRS Tax Debt - Hydra Debt
Don’t Delay In Managing IRS Tax Debt

Don’t Delay In Managing IRS Tax Debt

Debt Resolution, IRS Settlements Offer Help for Serious Tax Problems

San Mateo, Calif., – With tax day behind us, consumers and business owners who owe the IRS are not out of the woods. But while death and taxes are the big two inevitabilities, those with serious tax problems should know that it is possible to negotiate with the IRS to reduce tax that is past-due and payments, in accordance with Bradford G. Stroh, co-founder and CEO of Freedom Financial system, LLC.

Us citizens, carrying more debt than ever, will also be more prone to have tax dilemmas than previously. In 2004, the total of uncollected IRS taxes reached up to $250 billion. The amount of levies (a vital enforcement tool where the IRS takes control of assets to gather on unpaid fees) topped 2 million during financial 2004 – a 21 percent increase from 2003 and triple the 2001 number year.

According to Stroh, taxpayers with taxation debts under $10,000 usually can manage the repayment by themselves or via an installment plan arranged with the IRS. “Tax problems merit specialized help when individuals cannot pay tax liabilities of $10,000 or more,” Stroh claims. “At that point, professionals can negotiate straight because of the IRS on behalf of these consumers, helping them obtain settlements.”

Tax relief specialists usually are solicitors or certified public accountants with special training and experience. Stroh describes why these specialists can navigate the intricacies of IRS forms and calculations, assist consumers understand the criteria the IRS imposes, and then help them get back in to good standing because of the IRS.

Depending on the extent of ones own situation, two kinds of IRS settlement can be obtained:

An offer in compromise reduces the main amount owed to the IRS.

An installment agreement is a repayment arrange for the amount due and sometimes includes reduced penalties.

“Remember you cannot allow overdue taxes languish,” Stroh warns. “The IRS is serious — and increasingly aggressive — about tax collection and evasion. Tax debt can result in a lien on a house or garnished wages.”

Advisors can help consumers with the steps that are following

Measure the situation and determine the total amount of taxes owed to the IRS.

Ascertain perhaps the situation satisfies IRS criteria for “doubt as to collectability” (i.e., struggling to spend the total tax burden), “doubt as to obligation” (i.e., consumer may not owe the income tax), or “economic difficulty.”

Establish the amount that is full, including fees, penalties and accumulated interest, and comprehend whether collection limitations or penalty cancellations are feasible.

Determine the best method for handling and eliminating the taxation debt.

Negotiate utilizing the IRS to be in on an agreed strategy and resolve the debt.

While facing and handling tax debt can be painful, last year’s bankruptcy reform legislation made it even more crucial for consumers to act. Historically, consumers in severe IRS debt might file for Chapter 7 bankruptcy protection or wait for the 10-year statute of limitations on tax obligation to expire. Now, folks are even more restricted in the ability to obtain Chapter 7 filings. The bill’s new “means test” leads many consumers instead to file Chapter 13 bankruptcy, which establishes a repayment plan, rather than wiping out all debt. Consumers with tax debt might think it is much less high priced and better to work with a debt quality firm’s tax relief solution, that allows individuals to set up income tax payment plans while avoiding court fees, attorney fees and bankruptcy judgments on the documents.

“Whatever means you choose, tax period means it is time to face the unavoidable and manage your tax burdens,” Stroh claims. “Fortunately, specialists can be obtained to assist you on the way.”

Freedom Tax Relief, LLC ( provides consumer debt quality services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the customer, negotiating with creditors to reduce principal balances due that can often cause cost savings of up to half the total amount owed. Situated in San Mateo, Calif., Freedom Financial Network acts more than 5,000 clients nationwide and manages significantly more than $200 million in unsecured debt, offering an alternate to bankruptcy, credit counseling, and debt consolidating.