Common Tax Relief Programs the IRS Offers
Common Tax Relief
Programs the IRS Offers
The old saying that nothing is certain in life except
death and taxes has never been truer, or more frightening. In the current
environment, fear of the IRS is creeping in, and nothing will get your heart
racing quite as fast as opening the mailbox and finding a letter from the tax
agency.
When the IRS comes calling, you might think that there
is nothing you can do. You may worry that you will have to liquidate your
assets, sell your car or even put your home on the market to afford what the
IRS says you owe.
The good news is that you may not have to pay that
total amount, and before you write that big check you should check out the
alternatives first.
The IRS actually understands taxpayers fall behind on
their taxes, and they have programs in place that can reduce the amount you owe
or at least make paying the tab a little easier.
Note: As a tax resolution firm, we always recommend that you reach out to a professional who knows how to aggressively negotiate with the IRS on your behalf. If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your tax debt. Our tax resolution specialists at Fair Tax Solutions can navigate the IRS maze so you have nothing to worry about. Call us today at (470) 305-1233, or visit us online at www.fairtaxsolutions.com.
With that said, here are some of the most common tax
relief programs the IRS has to offer - and how you can access them.
Payment Plans
Otherwise known as installment agreements, one of the
most common ways taxpayers approach the repayment of their back taxes is by
setting up a payment plan. This type of program is a popular one, and for good
reason - it can greatly reduce the stress you feel as you deal with an
unexpected tax bill.
There are pros and cons to this approach, and it is
important to explore your other options very carefully. With a payment plan you
will need to pay the entire amount you owe, but you can stretch the repayment
out over months or even years. Keep in mind, however, that the IRS will
continue to charge interest on the remaining balance, so this option will require
you to pay more than the amount you owe.
Offer in Compromise
Another program the IRS offers is known as the offer in
compromise, or OIC. This option allows eligible taxpayers to settle their tax
debts for less than the IRS says they owe, and that means you could save money
if you qualify for this program.
The offer in compromise is not right for everyone, and
it is important to work with a tax relief expert or tax resolution specialist
if you are exploring this kind of compromise. If you have significant assets,
the IRS may not be willing to settle, but if you are strapped for cash the
offer in compromise arrangement could be the way out of the trouble you find
yourself in.
IRS Hardship Program - Currently Non Collectable
The IRS hardship program is another option for
taxpayers who are financially unable to pay what they owe to the tax agency. If
you are truly strapped for cash and worrying about your tax debt, you should
definitely check out the hardship program, but you should not try to work with
the IRS on your own.
The hardship program has some very specific
requirements, and if you make a mistake when applying you could find yourself
locked out of the process. By working with a tax resolution specialist you can
increase your odds of success and possibly save yourself a lot of money in the
process.
What is the best option?
As you can see, the IRS does offer a number of programs
that can reduce the amount you owe - or even forgive your tax debt altogether.
If you are eligible for one of these tax relief programs, you could find
yourself breathing a lot easier, but the IRS is not likely to give you the
information if they do not have to.
As a taxing authority and agency, the IRS has an
interest in keeping these relief and resolution programs under wrap. Their
goal, after all, is to collect as much money as possible and telling taxpayers
that they can pay less is simply not in their interest.
For all of those reasons and more, it is important to
work with a tax resolution professional whenever you are dealing with an IRS
problem. Whether the debt is the result of years of unfiled taxes, a
discrepancy in the amount reported and what the IRS says you owe or anything
else, specific expertise can make a huge difference - and save you a lot of
money in the process.
Knowing about the tax relief and favorable resolution
options the IRS offers is the first start, and that education can be a huge
point in your favor. Now that you know what types of programs are available, it
is time to take the next step, so pick up the phone and call us, your tax
resolution specialist, today at (470) 305-1233!
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