Clear Debts Promptly to Avoid Harmful Tax Penalties


Irs tax debt

During the Civil War, individuals earning between just $600 and $10,000 a year paid a tax rate of 3 percent . Nowadays, both wages and taxes have increased, and the complexities associated with that trend have caused many individuals to have to deal with IRS garnishments. Wage garnishment, which is the most common type, is the process in which the monetary compensation, including salary, is deducted by the IRS, possibly as a result of a court order. If that kind of IRS garnishment happens, individuals will likely want to make sure that they are able to clear their debts and stop wage garnishment.

Fortunately, individuals facing IRS garnishments and in need of Irs tax relief has many options to help them avoid tax penalties. The abatement process is the most common way individuals will try to earn IRS debt relief, but taxpayers might also want to prove doubt as to collectibility, or DATC, in order to prove that they completely paying their tax bill will never be possible. While paying back debts is probably the simplest way to stop IRS garnishments, using one of these strategies can be useful for individuals who owe an overwhelming amount.

An addition tool that individuals have when facing IRS garnishments is Effective Tax Administration, or ETA, offers. They require that the taxpayer is ineligible for an offer in compromise based on either DATC or Doubt as to Liability. If that is the case, ETA offers might be the best way for individuals to reach an IRS debt settlement. Though this process, and others, can be complex, working through it might be the most realistic option for anyone struggling with Irs garnishments.


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