Tax debt can feel like a mountainous problem, with the pressure building as penalties and interest continue to accumulate. Clean Slate Tax understands this and has tailored a range of services to help individuals and businesses effectively manage and resolve their tax debt problems. Here, we’ll explore the specific solutions offered by Clean Slate Tax, and how they work to bring you financial freedom and peace of mind.
Offer in Compromise
The Offer in Compromise program is an IRS initiative that allows taxpayers to settle their tax debt for less than the amount owed. When examining an Offer in Compromise, the IRS considers several factors including income, debt, expenses, and asset equity.
Installment Agreements
An installment agreement is essentially a payment plan with the IRS or state tax agency. This method allows you to pay your tax debt over time, making it more manageable and less daunting.
Fresh Start Program
Initiated by the IRS, the Fresh Start Program was designed to make it easier for taxpayers to pay back taxes and avoid a lien or a levy. Under this program, the threshold for liens has been increased, and more taxpayers are now eligible for installment agreements.
Penalty Abatement
The IRS may assess numerous penalties on your tax account, but with penalty abatement, some or all of these penalties can be removed if you meet certain criteria. If you can show reasonable cause for why you didn’t meet your tax obligations, then the IRS may agree to reduce or eliminate the penalties.
Tax Lien Removal
A tax lien represents the government’s claim on your property when your tax debt is not paid. Clean Slate Tax can help you navigate the process of having these liens removed so you can regain control of your assets.
Common FAQs about Tax Debt Solutions
Q: Which solution is right for me?
A: The best solution depends on your unique circumstances. It’s advisable to consult with a tax professional who can evaluate your situation and guide you towards the best solution.
Q: Can I negotiate with the IRS on my own?
A: Yes, you can. However, the process can be complex and stressful. Having a professional by your side can make the process easier and increases the chances of a favorable outcome.
Q: What happens if I ignore my tax debt?
A: Ignoring your tax debt can lead to increased penalties, garnishment of wages, seizures of property, and a tax lien on your assets. It’s best to address your tax debt as soon as possible to avoid these outcomes.
Dealing with tax debt can be overwhelming, but with the right guidance and support, it can be resolved. Clean Slate Tax is committed to providing effective solutions to help you conquer your tax debt and achieve a fresh financial start.
