Finding yourself in debt to the IRD is a scary situation. Not only do you already owe the IRD money, you are also accumulating interest and penalties quickly, increasing the debt figure and your stress levels. When you get a tax specialist from Tax Debt Sorted NZ on board, the very first thing we do is set up a debt negotiation period with the IRD on your behalf.
What is a Debt Negotiation Period?
Like any legal negotiations, a debt negotiation period is where both parties involved communicate openly about the situation to find an amicable resolution. When your tax lawyer sets this period up with the IRD, immediately all accruing late fees come to a halt; while we are negotiating the terms, the amount you owe will not continue to grow.
During this debt negotiation, we advocate for you, working with the IRD to determine a tax relief option that will make your debt more manageable. IRD tax debt negotiation keeps everyone happy. The end point is often agreement on both sides to a realistic repayment plan.
Sometimes you will get a tax write off, which means all or a portion of your debt will be forgiven. At the end of the day, the IRD wants you earning money and paying taxes regularly. If monthly instalments or IRD debt write offs will make this happen, they are open to it.
Factors Affecting Negotiations
The outcome of the negotiation depends on many factors, including the amount of tax arrears, how long you have been indebted, the circumstances of the debt, your current financial situation and so on. We use all of this information to determine what you can afford to repay and make a case for you to the IRD.
Get Tax Debt Sorted on your Side
The tax specialists at Tax Debt Sorted NZ have experience with the IRD which means we know how they operate. We understand the jargon, the policies and the mindset, which lets us negotiate your debt quickly and efficiently.
Our tax debt negotiators and tax lawyers are not your average tax specialist – we really listen to and evaluate your story in order to bring in the best possible case to the negotiation process. We are on your side and don’t judge you or make you feel guilty. We use our expertise to get you back on your feet financially.
If you are struggling with tax debt in Auckland, Christchurch or Wellington or elsewhere in NZ, give us a call.