Having debt, especially debt associated with unpaid taxes, can cause a considerable burden on any New York resident’s life. Back taxes can lead to notice letters, wage garnishment and other efforts from the IRS to collect on the debt. These actions can lead to a considerable amount of stress, and individuals in this predicament may wonder how they can stop collections.
Fortunately, owing back taxes does not have to seem like an impossible situation. There are multiple options that could help struggling taxpayers find the best avenue for their particular circumstances. For example, some parties may be able to take advantage of an IRS payment plan. This could be a short-term payment plan in which the taxpayer completes the plan in 120 days or fewer, or a long-term plan, which is completed in 120 days or more. However, interest and penalties still apply.
An offer in compromise may also be an option for qualifying parties. This route would allow a taxpayer to settle the remaining back taxes for an amount lower than what is actually owed. It is important to note that this option is only for individuals who have absolutely no way of paying off the full amount of their debt, and due to that stipulation, it is difficult to obtain approval for an offer in compromise from the IRS.
If New York residents are struggling with unpaid tax debt and feel the constant stress of collections, they may want to thoroughly review their options. Dealing with the IRS can certainly be difficult, which is why it helps to have an advocate. Interested parties may wish to speak with experienced tax law attorneys who can explain various options for stopping collections and can help determine the best route for each individual case.