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Is there more than one way to settle tax collection cases?

| Dec 25, 2018 | Tax Controversies

It just is not always possible for many Massachusetts residents to meet their financial obligations. Medical emergencies, job losses and other catastrophic events can quickly drain any monetary resources a family may have. Another event that can result in an adverse financial event is owing taxes. Fortunately, more than one way exists to deal with tax collection cases.

Massachusetts residents who owe taxes to the federal government may be able to deal with that debt without breaking the bank. The IRS understands that some people cannot pay their tax bills in one lump sum. It may be possible to enter into a partial payment installment agreement, an installment agreement for the full amount owed or an offer in compromise to satisfy the debt.

The IRS may declare an individual’s taxes as “not currently collectible” under certain circumstances. If a family is in real dire financial straits, bankruptcy may be a viable debt relief option. In some cases, certain tax debt may also be discharged along with other debts. The tax debt must meet certain criteria in order to qualify under this circumstance.

With a number of options available, those who owe taxes they are not able to pay would need to explore which one would provide the best opportunity for relief from tax collection cases. This often requires a thorough evaluation of an individual’s financial condition, including the ability to repay the amount owed. Before making any final decision regarding how to approach the matter, it should be noted that some experienced intervention could save a taxpayer from making a costly mistake.

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