If you owe the IRS money, you may feel as if you’re in a hopeless position. The interest and fees the IRS adds to back taxes often amounts to a huge sum of money that may seem impossible to pay.
Don’t give up. If you owe the IRS money, you may qualify for debt relief. While this option is not for everyone and the application process is complex, debt relief provides a reprieve that can help you salvage your confidence, improve your finances, and get your life back. Discover four ways IRS debt relief can help you.
Avoid Wage Garnishments
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If you disregard your tax obligations, the IRS can garnish your wages. However, if you’re participating in a debt relief program, the agency won’t take this step. Going the debt relief route can save you the embarrassment and financial distress that accompanies wage garnishment.
Reduce Your Tax Burden
Possibly the greatest benefit of debt relief is that it may reduce the amount of money you owe the IRS. Get professional help to try to make your tax debt more manageable. If you qualify for debt relief, you may be able to pay a reduced lump sum, called an Offer in Compromise. This option gives you the chance to pay a smaller amount of money as your full and final amount.
You may also qualify for a long-term payment plan. This type of plan can allow you to pay off your tax debt at a reduced dollar amount over several months or years depending on the amount you owe.
Provide Stress Relief
Owing the IRS money is a huge stressor that can affect almost every aspect of your life, but qualifying for debt relief can help. If you’re able to reduce what you owe the IRS, the amount of stress you’re under can decrease. The plan the IRS will give you to follow can help with anxiety as well.
The payment plan you will use to pay off your tax debt can help you make short- and long-term financial goals. This flexibility can give you a sense of control that can help with stress and anxiety.
Improve Physical Health
Mental health and physical health are intertwined and improving one can improve the other. Since you could likely enjoy decreased levels of stress after qualifying for a debt relief program, you may find that your physical health improves.
Stress can cause heart problems, digestive issues, sleep disorders, fatigue, and a host of other health problems. When they reduce stressors, people often find that many of their physical ailments diminish as well.
Qualifying for debt relief from the IRS won’t solve your money problems, but it can lift some of the burdens that go along with them. While you still must pay the IRS what you owe, you may find you’re able to pay a reduced amount, enabling you to reduce your debt more quickly. Qualifying for debt relief can also allow you to avoid wage garnishment and the distress that accompanies it. These combined benefits can reduce your stress levels, possibly leading to improved mental and physical health.
James Dean Editor-in-Chief of MONEY.CA and Money Magazine found this article from Tax Crisis Institute to be helpful, informative and relative to tax problems and issues with the IRS. https://www.taxcrisisinstitute.com/blog/wage-levy-vs-wage-garnishment-difference/