Back Taxes Settlement Plans

Written by News Channel 2 on May 20th, 2013. Posted in Irs debt relief, Remove tax lien

Irs debt settlement

An old adage insists that only two things in life are permanent: death and taxes. Taxes have assumed many forms throughout history. In feudal Europe, tax collectors repossessed a portion of a tenant farmer’s crop and gave it to the lord who owned the land upon which the farmer worked. In the United States, however, the IRS simply garnishes a percentage of a citizen’s annual income.

Congress enacted the country’s first income tax laws in 1862 as part of their broader efforts to finance the Civil War. They ordered citizens who earned between six hundred dollars and ten thousand dollars a three percent income tax. Although the war ended in 1865, Congress continued to charge annual income taxes in order to finance government programs. Finally, shortly before World War I, Congress passed a Constitutional amendment which made income taxes a permanent feature of American life.

Today, tax laws and codes are so complex that many frustrated individuals require back taxes help. Whenever individuals cannot pay their taxes, the IRS places a federal tax lien on their credit scores; in many cases, this tax lien gives them the right to repossess individuals’ property if they do not pay their taxes by a certain date. (Even if individuals cannot afford to pay their taxes, the IRS encourages them to file their returns on time every time in order to avoid costly tax penalties and late fees.) Consequently, many frustrated individuals require back taxes help, IRS debt relief, and IRS tax relief.

The IRS often agrees to work with individuals who require back taxes help to develop payment plans which will reduce back taxes that the individual must pay. For example, the IRS will often offer to garnish a percentage of a person’s wages each month and apply this Irs garnishment to the individual’s back tax balance. This plan offers back taxes help to thousands of individuals who cannot afford to hire lawyers to negotiate complex settlement plans. Many individuals seeking back taxes help find that this plan does not disrupt their lives as drastically as a more elaborate payment plan.

However, this process is very slow, and consequently, many individuals seeking back taxes help do hire lawyers to negotiate other settlements. Occasionally, these lawyers convince the IRS to reduce or eliminated the back tax balance!