Tax Debt Write-Off
What is Tax Debt Write-Off?
When you are facing tax debt, the best-case scenario is receiving a tax debt write-off or, in other words, having your tax debt entirely wiped away. Essentially a tax debt write-off allows you to hit reset and eliminate your debt, which is the most painless way of getting back on your feet. Another option is a partial tax debt write-off, in which the IRD will wipe some of the debt and request payment for the remainder.
Do Tax Debt Write-Offs Actually Happen?
It does sound quite far-fetched to have your tax debt cleared completely, but it’s not impossible. At the end of the day, the IRD is not solely after the money that is in arrears; they also want to encourage a sustainable tax system in NZ where people are likely to comply and pay taxes properly on an on-going basis. This is why, in certain circumstances, tax debt can be written-off. More often, though, you’ll see a partial write-off which is still a significant help when it comes to emerging from underneath the mountain of tax debt.
How TDSNZ Can Help
With a wealth of tax law knowledge and experience working for the IRD, the tax debt specialists at TDSNZ are in a unique position to help you achieve a full or partial tax debt write-off. The IRD has particular rules that they have to follow, so we cannot promise write-offs in every instance, but we want you to know that tax debt write-offs are not out of the question. We communicate with the IRD on your behalf and will always be open and honest with you about your particular case. It’s best to get in touch with us sooner than later to achieve the best possible tax debt resolution.