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Tax Debt Relief: A Complete Guide to Settle IRS Tax Debt

Tax Debt Relief: A Complete Guide to Settle IRS Tax Debt

Tax Debt Relief: A Complete Guide to Settle IRS Tax Debt

Taxes are the scariest thing ever to happen in someone’s life. As no one like to pay tax but unpaid tax lead to penalties and interest which ruined the peace of your life.
IRS has introduced a tax relief program for those taxpayers who are not able to pay their taxes. Most people don’t know about this and paying much on the taxes. Do you want relief in your taxes? Yes, you are in the right place. Here is a complete guide to IRS Tax Relief program, after this, you will be eligible to understand about Tax Relief and can be able to save your money from overpaying tax and penalties.

What is Tax Relief?

It is generally known as a reduction in the amount of tax (that a person or company has to be paid) if they are not able to pay all their tax, due to some genuine reason like expenses associated with their property or business.
Tax Relief majorly lowers the tax bills and also reducing the burden of people by forgiving tax liens. But this opportunity is only available when a person or company qualify to meet with certain conditions.

Benefits of Tax Debt Relief Program

These are the benefits you may enjoy by having relief in your taxes.

1.      Avoid wage garnishments from Government

The government can issue wage garnishment if you try to ignore or making false information while filing your tax debt. If you are not able to pay, you can prove your financial hardships to IRS to qualify for the Tax Debt Forgiveness Program and get relief on your taxes.

2.      Payless tax to reduce the burden

If you are eligible to attain Tax Debt Relief then you have to pay less tax than you owed. It will lessen your tax burden and help you to pay it quickly.

3.      Remove Tax Liens

If you are not taking care of your property and businesses while owing IRS money then the government will issue tax liens to your property, business, vehicles, etc. But debt settlement program would remove your lien until you pay your tax debt.

Tax Problems:

Taxes lead to Stress and finish happiness of life when you get a notice from the IRS. Some of the tax problems you may face are:
  • Unpaid Taxes
  • Unfiled Tax Returns
  • Tax lien
  • Tax Levy
  • IRS Wage Garnishment
  • Tax Penalties
  • IRS Notices/Letters
  • Tax Audits

Tax Relief Options/Solutions

1.      IRS Forgiveness Program

i) Offer in Compromise (OIC)
If you can afford to pay equal to or more amount you owe the IRS, then this plan will be suitable for you. It can save a lot of your money from taxes, penalties, and interest. There are strict requirements to qualify for this plan but If you qualify for this plan then you can pay a small amount as full and final payment.
ii) Installment Agreement
Most of the taxpayers are not able to pay all their taxes collectively in the due time issued by the IRS. So, they can make a monthly payment agreement with IRS that fit their budget.

2.      Penalty Abatement

Penalty abatement is a term where penalties are abated by the IRS. IRS forgive penalties to those taxpayers who can show causes of their financial hardships to them and settle taxes for less than you owe. This can only be achieved if the debt is paid. But if you have already availed abatement on penalties you cannot get the interested abatement.

3.      Currently Not Collectable (CNC)

CNC means that taxpayers at present don’t have amount to pay their tax debts or facing extreme hardships. They have no asset to qualify for OIC and Installment agreement plan then they will go for this option.

4.      Innocent Spouse Relief

This option is for those taxpayers who have filed jointly with their spouse or ex-spouse. If you get your spouse’s IRS tax problems and you qualify for this option, you may get spouse tax relief as you are not responsible to the taxes which are caused by your spouse or former spouse.

5.      Bankruptcy

Bankruptcy is only limited to income tax debt. Through Bankruptcy you can only remove your all income tax debt.

Eligibility for Tax Debt Relief Program

The qualifying criteria of debt relief programs vary due to the size of the debt like If you owe less than $10K, you can file online at IRS website but if you owe less than $50k and greater than $10K, you qualify for Installment Agreement. But if you have declared bankruptcy or owe more than $50,000, you can’t file online you can settle it by OIC.

Still Confused???
As people are unsure about the total tax, which they haven’t paid in years. It is an extremely complex process, you cannot apply for specific tax relief option without the help of professional help.

How we can choose the right firm for IRS Tax Relief
 
There are many scammers who declare that they can help you to get tax relief, you have to be aware of while choosing a firm. You must take help from only certified or registered Accounting firms to take help to choose the best debt settlement program according to your eligibility without disclosing your financial data to the IRS.