How it is Easier to Pay-off the IRS Tax Debts When Compared to Other Type of Debts?

It is true that the Internal Revenue Service gives a great deal of suffering to the lives of people who have unsettled tax dues, but when we compare with student loan debt industry, the IRS is far more reasonable with regards to tax settlements. In fact, the number of options you get to solve your tax issues is lot more than what you get in a student loan sector. You'll find three big things that separate the IRS from the more evil student loan industry.

The first big bonus to the IRS is that they have a limited time to collect pending tax dues. They have only ten years to collect the debt and this can be a huge help to someone who is settling debts. There are some constraints, such as if you leave the country, the ten year clock will pause. The IRS can take the debt issues to the court, if they think that you cause problems to them. But in the case of student loans, you've got no other choice rather than to repay them. There is absolutely no escape out of this and even if you file bankruptcy, student loans are not dischargeable.  

The next thing is, based on your income, expenses and your present financial situation, the IRS will prepare a reasonable plan to pay back the debts you owe to them. Even when all hopes are lost, the Offer in Compromise (OIC) program helps you to see some light by the end of the tunnel. This method helps the struggling taxpayers to resolve all payment concerns without adding any unnecessary burden on them. However with student loan debts, the only real option you've is by asking for partial or full deferment on payment of federal loan.

Tax debts are dis-chargeable in Chapter 7 bankruptcy provided you have filed income tax returns for the previous two years. This can be a blessing in disguise considering the fact that you will get full discharge of allowable debts under Chapter 7. To qualify for this, the taxpayer should not been found guilty for any deliberate act of evading the tax laws and also his/her tax return shouldn’t be identified as fraudulent or frivolous. You can put student loan payments in Chapter 13 plan and you will have to pay off in 5 years. But still you've got to repay the complete amount.

The IRS is one of most powerful debt collector in the United States which means they do whatever things possible to get back pending taxes. But when compared with student loan debts, you will get many options like the ones mentioned above to pay off your IRS tax debts. Student loans don't have any statute of limitations and under most circumstances, you need to pay back the loans entirely as there is no way of escaping it. Though the IRS has horrible reputation, you have various solutions to get out of any tax problem.