Tax debt is on the rise, and taxpayers don’t have many options as to what to do when they get behind with their taxes. Getting help from a tax debt resolution company can be wise, but before making any decisions, find out the possible benefits of choosing this option.
Here are some of the benefits that may come with choosing a good tax IRS debt resolution company:
1) You’ll pay less if you choose an IRS debt resolution company over filing for bankruptcy.
Debt resolution companies can negotiate with the IRS to settle your tax debt for less than what you might have to pay in a bankruptcy case.
2) Your credit score won’t take a hit if you choose an IRS debt resolution company over bankruptcy.
Bankruptcy case filings show up on your credit report and stay there for 10 years. A tax debt resolution will not appear on your credit report until it’s resolved within five years.
3) You’ll be protecting retirement funds in an IRS debt resolution case.
If you choose a tax debt resolution, you can keep your retirement funds and leave the IRS with what is owed.
4) You’ll be saving money.
You won’t have to miss any essential financial obligations because of your tax debts. The IRS does not allow for extensions before the five-year deadline. So, by choosing an IRS debt resolution option, you don’t have to worry about missing out on doctor’s appointments, mortgage payments, or car payments. You will be able to get monthly payments set up so that you never miss out on any of these essential financial obligations.
5) You’ll be protecting your credit score.
If you file for bankruptcy and your debts are not fully paid, your credit score will hit you. When filing for bankruptcy, your debt repayment will be negotiated out in a short time and done so without harming your credit score. But if you choose a tax debt resolution option, all that negotiation work on the IRS’s behalf is done without any adverse effects on your credit score.
6) You’ll be able to keep up with required payroll and other business expenses.
When you have an IRS debt resolution company handling your case, they can set up monthly payments so that you are never left behind in these critical financial obligations.
7) You’ll get a tax debt resolution without having to give up your business or properties.
You can still run your business and daily life with an IRS debt resolution. If you choose bankruptcy, you may have to give up some of your property, and you will no longer be able to run your own business for at least a year.
8) You’ll be able to get started sooner than if you file for bankruptcy.
When filing for bankruptcy, it can take a long time before legal actions get started on your case. But with an IRS debt resolution, you can get a resolution in as little as three months, less time than it takes to file for bankruptcy.
9) You will not worry about missed payments or late fees.
When choosing an IRS debt resolution option, there are no missed payments or late fees. There are many other benefits to choosing a tax debt resolution company over filing for bankruptcy, including the fact that you won’t have to worry about missed car payments or missing the mortgage payment when the people you owe your money to refuse refunds, hold back on payments or turn off your car’s lights because they don’t want their debt repaid.