Understanding Tax Debt

Being in debt with the IRS is a stressful situation to be in. When you owe money to the IRS you are at risk of the IRS placing a lien or levy on your assets or property. It’s safe to say that if you are in debt with the IRS, you are not alone. Every tax year, hundreds of thousands of taxpayers end up in debt to the IRS. This debt can come about because of underreported income or underpaying taxes. The good thing is that there are tax debt resolution services that can help you.

What is tax debt?

Tax debt can be incurred when a taxpayer forgets to pay or file their taxes or makes a mistake on their taxes. Fortunately, the IRS provides resolutions for taxpayers to resolve their debt. There are many options available to help reduce, and in some cases eliminate tax debt. Some of these resolutions options include filing or correcting a tax return, penalty abatement, installment agreements, or an offer in compromise. Keep in mind that the resolution you qualify for depends a lot on your financial situation.

Does tax debt have a statute of limitations?

Income tax debt does have a statute of limitations for when the IRS can collect on the unpaid debt. The total time for the statute is 10 years from when the penalty was assessed – this is known as a Collection Statute Expiration Date (CSED). Generally, this means that once that date is passed, the IRS has no choice but to forget that debt. It should be noted that the CSED can be extended for various reasons. These reasons can include but are not limited to: entering into an installment agreement, submitting an offer in compromise, having property seized, or entering in a period of non-collectability. 

How can I settle my tax debt?

At CuraDebt Tax, we have a team of tax professionals who are able to find the best IRS resolution available to you. Contact us to better understand your tax problems and to choose the best IRS resolution option. CuraDebt has been connecting individuals and small businesses with vetted debt relief partners for over 25 years nationwide. As of May 2023 CuraDebt received a score of 5 out of 5 on CustomerLobby for a total of 1,600+ five-star reviews. CuraDebt is an Accredited Member of the American Association for Debt Resolution (AADR). Contact us for a free consultation. 1-877-999-0486. Take advantage of exploring another option for free. Not only do we connect you with vetted partners for tax relief, we also offer debt relief.

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