There are several alternatives to being hassled by IRS debt collectors. This means that every taxpayer has the right to challenge the IRS even if he or she owes thousands of dollars in back taxes. There are many collection alternatives to consider in Texas when it becomes difficult to pay.
Extensions
An extension is the first of several collection substitutes that most taxpayers consider first. It gives the taxpayer more time to pay by requesting to file a tax return at a later date. You will continue to receive written notices for failing to make payments in full.
Payment plans
The IRS has to approve your request for an installment agreement and calculate the correct fees, interest rates, and monthly payments. Debts that are $10,000 to $25,000 must be paid by direct debit. There are short-term installment plans that last for 180 days or less and long-term plans available.
Offer in compromise
A taxpayer may offer a compromise as to why the debt cannot, or should not, be paid. Doubt as to collectability is one type of offer that is made when the debt cannot be paid due to financial hardship. The doubt as to liability is the claim that the taxpayer is not liable for the full or partial debt.
When you have power over the IRS
For many people who owe money to the IRS, an installment agreement is a right option while others have the right to deny the debt altogether. Choosing an alternative method of paying the debt is recommended to avoid facing more severe actions from the IRS, like bank levies or property seizures. There is a method available to anyone who wants to stop collection efforts and reduce the hassles of managing debts.