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Federal income tax dues are non-dischargeable debts and getting relief from them can be extremely difficult. IRS can sue the debtor for an asset lien to recover dues, interest, and penalties. To stop the collection of dues from lenders like IRS, filing for bankruptcy can put their collection attempts to a temporary stop until the bankruptcy court arrives at a certain judgment. This relief sometimes can prove very important in financially draining situations. Know more about bankruptcy and its impacts on https://recoverylawgroup.com/bankruptcy/.
Federal tax dues and penalties or interest are taken very lightly unless it is very late. The IRS can stake a claim at a house, or any other debt it feels can help recoup its dues. The IRS can also recover dues from the income sources of the debtor by wage garnishment methods. The tax debt payment options have been facilitated by the IRS to ensure some relief for financially distressed individuals. These may include the following-
- Pay in EMIs
Paying tax debt as a lump sum might seem a very difficult task for financially troubled people. Hence, an individual can get into an agreement with the IRS for an installment payoff of the net dues. It might attract interest, but it is bound to be lower than the market. Also, the amount should be considerable enough to be equated to EMIs.
- Negotiation with IRS
If an individual does not have any means or is unable to set off the dues, they can negotiate to pay off a lower amount, which might have IRS waive off some interest and penalties and adjust the dues as well, depending on how dire your financial situation is. But it is important to note that IRS does not easily give up on its dues and the situation must be dire to get a negotiation deal with IRS.
Terms during bankruptcy
IRS never stops levying interest or penalties no matter what. If the bankruptcy is filed, the filer can have a breathing space where the interest on the dues is temporarily paused. This is applicable for all unsecured debts, but the interest keeps ticking for all eligible debts that have a lien or an asset as collateral. Depending on the nature of debts you have and the priority whether it is to protect assets or future income, one can select the most beneficial bankruptcy chapter options.
Making the right choice with respect to bankruptcy can be critical in determining how you end up. Therefore, do not take any risk, dial 888-297-6203 now and connect with Los Angeles & Dallas, TX attorneys in minutes.