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How to Get Rid of Tax Debt?
Student loans are one type of debt that is notoriously difficult to wipe off your books. In this same vein, tax debts are another area that is shrouded in mystery.
The Fast Way Of Getting Rid Of Tax Debts
Filed Returns – You must have returns on file with the IRS for the years in dispute. If you filed your tax returns late, can you still get rid of the tax debt? Yes, but only after two years have passed since you filed the return with the IRS.
Getting Rid of Tax Debts
Your tax debt cannot be related to fraud, to wit, you must owe back taxes because you failed to pay them, not because you played funny on your tax return. Your tax debt cannot be due to a criminal act. If you stuffed money away in a Swiss bank account and the IRS found it, the bankruptcy court is not going to discharge the debt.
How to reduce the mountain of debt?
Not currently collectible: a program where the IRS voluntarily agrees not to collect on the tax debt for a year or so. Some people throw out receipts, invoice copies, and bills for products they buy or services they pay for. Bills and other documents are needed to back up any deductions or additions you may make on your tax return.
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