Tax season can be a stressful time for many individuals and businesses. However, what’s even more daunting is dealing with tax debt. Whether it’s due to unexpected financial hardships, incorrect filing, or simply not being able to pay, it can cause a significant burden on individuals and businesses. In this blog post, we will discuss tax debt and how HBI Tax can help individuals and businesses navigate this challenging process.
What is tax debt?
Tax debt is the amount of unpaid taxes owed to the government. It can be a result of unpaid income taxes, self-employment taxes, payroll taxes, or even penalties and interest accrued over time.
Options for Dealing With Tax Debt
The IRS offers several solutions for individuals and businesses to pay off their debt.
Installment Agreements
An installment agreement is a payment plan arranged between the taxpayer and the IRS, allowing the taxpayer to make monthly payments until the debt is paid off. The IRS may require individuals and businesses to provide financial information to determine the monthly payment amount.
Offer in Compromise
An offer in compromise is a program that allows taxpayers to settle their debt for less than the full amount owed. However, this option is only available for taxpayers who cannot pay their full tax debt or if doing so would cause financial hardship.
Currently Not Collectible
A currently not collectible status is granted to taxpayers who cannot pay their debt due to financial hardship. This status delays tax collection until the taxpayer’s financial situation improves.
Solutions and Strategies
At HBI Tax, our team of tax professionals can assist individuals and businesses in navigating the complex process of dealing with tax debt. Every case is different and we offer personalized solutions and strategies to help all our clients resolve their tax debt. Our team stays current with tax laws and regulations to provide the best services, from tax planning to audit assistance. It’s never too late to seek help — contact us today.
