Taxes

How to handle income tax debt

There are three basic strategies for handling past-due income tax debt:

  1. Offer in compromise
  2. Payoff over time
  3. Dismissal in bankruptcy

The only way to appropriately access these options is to take a ‘big picture’ view of your overall financial status and expectations in light of specific IRS program requirements. It is never easy but most people can recover from serious tax debt and build a solid financial future.

Two approaches that do not work are:

  1. ignoring the problem
  2. believing those late night TV ads that promise to settle tax debt at pennies on the dollar.

I offer a no-obligation consultation to discuss the issues and solutions that might be best in your situation.

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