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Tax Debt Help: Where to Find It
Are you in debt? Is the Internal Revenue Service breathing down your neck and threatening your livelihood? Do not be overwhelmed by tax debt as there are ways for you to solve your tax debt problems and keep the tax collector far away. Read on for some helpful advice.
A Little Bit of Equity. If you own your home, you could have a significant amount of equity in it, especially if you have lived in it for more than five years. Through your bank or similar lending institution you can apply for an equity line of credit or equity loan. Just with this amount of borrowed money, you may be able to obtain enough funds to cover your tax debt and penalties. Current rates are still low – shop the internet for the plan that is right for you.
If you are in debt and owe the taxing authorities money, you must tackle the problem head on to avoid interest charges, penalties, even jail time.
Sell Some Valuables. Your antique desk or chair, stamp collection, jewelry, or even an extra car may have considerable cash value to it. Turn what you own into cash; get on eBay to post your item[s] and to obtain multiple bids on what you are attempting to sell.
Friends and Family Plan. Swallow your pride and ask trusted family members and friends for help. To keep everyone happy, only accept money if a contract outlining explicit repayments terms is used. Check the internet for sample forms.
Get in Touch with the I.R.S. Talk about making a deal with the devil! Seriously, if you owe the Internal Revenue Service money and you cannot pay them back, contact them directly to arrange a repayment plan that works for you. No, they won’t forgive your tax debt, but they can spread out repayment over an acceptable timeframe. Just remember this: any unpaid balance will incur interest charges and further late payments by you will likely involve additional penalties. Read all the “legalese” before signing anything!
Finding tax debt help is the first step in tackling your problem. Ignoring the problem won’t make it go away and may worsen an already bad situation.
Once you have a plan in place, contact your county’s consumer affairs division for free debt counseling. Chances are your tax debt problem is only the tip of the iceberg and further help will be necessary to educated you on how to avoid future mistakes.