While there may be many individuals in Colorado who look forward to tax season and the windfall of funds it may bring, some might not approach this time with the same level of zeal. The concept of owing money on taxes can prove stressful in nature, especially if you feel you will be unable to manage similar obligations.
While falling behind on taxes is something that could happen to anyone, it can also be a major issue that could carry serious ramifications. If you owe substantial amounts in tax debts, you might be in search of advice on your available options for relief and how to choose a path that best meets your interests.
Although dealing with overwhelming tax debts can be daunting enough as is, preparing to confront the situation may also seem a stressful task. There may be a variety of options for relief should you fall behind on tax obligations, such as:
- Offer in Compromise: Offer in Compromise is a program that may help reduce your overall tax burdens by settling your debts, but there are requirements you must meet to be eligible for this program.
- Payment plans: The IRS may also offer payment plans to those who owe on tax debts, and the types of plans available to you may depend on how much you owe and how long you will need to catch up on obligations.
- CNC status: If paying tax debts would place undue burden on your life and diminish your ability to pay for everyday necessities, you may be eligible for relief via the Currently Not Collectible status.
- Tax errors: Tax debts may also arise if your current or former spouse made errors or exhibited fraudulent behavior when filling out information on joint tax returns. If you were unaware of this and had no part in this behavior, you may be eligible to file for Innocent Spouse Relief.
When facing similar concerns, the idea of using credit accounts or dipping into retirement savings to catch up may also be appealing at times, but similar acts might not always be the healthiest path.
There may be numerous available options to help you seek relief from the trials of tax debts, and the path that is most viable may vary, depending on your situation. With a great deal at stake, it might be helpful to consider seeking guidance in evaluating your situation and determining which path best aligns with your interests and needs. Such advice may help place you in a better position in which to pursue the relief required and help you begin working toward building a healthier financial future.