All hope is not lost if you are behind on your taxes. While penalties and interest can be very expensive, making your total tax debt feel hopeless at times, this is rarely the case. The IRS wants you to be able to pay your tax bill and will do nearly anything to make it happen. The IRS is known for playing hardball. Their standard mode of operation usually entails a version of the following scenario:
1.) Assess tax debt.
2.) Send a letter notifying the taxpayer of the tax debt with a demand for payment in full within 30 days.
3.) If no payment or communication is received by the deadline, a notice of action is sent out. (i.e. Notice of Intent to Levy, Notice of Wage Garnishment, etc.)
4.) Action is taken. This action can vary from garnishing your wages to taking your home depending on your personal circumstances.
Believe it or not, the IRS would prefer to not have to take action. It would be less expensive for them to have you pay your taxes willingly as opposed to them forcing you to do it. So the IRS has tax relief programs in place to make it easier for you (and them.)
IRS Tax Relief Programs Available
You may qualify for one tax relief program or a combination of tax relief programs. IRS Tax Relief Now has experienced and reputable Enrolled Agents available to help you determine what you qualify for and how to make the most of it.
Installment Agreements: Essentially any installment agreement is a payment plan. If you owe a large lump sum, the IRS may be willing to break it up into even monthly payments for you until it is paid off. The bigger monthly payment the better as interest will continue to accrue until the balance is paid in full.
Offer in Compromise: Buyer beware: many tax firms will be happy to offer this as a tax resolution option but the Offer in Compromise is not designed for the average taxpayer. Most taxpayers will not qualify for it. This doesn’t stop the tax firms from charging you thousands of dollars to “give it a try.” Make an assessment of your own situation before allowing someone to apply for an Offer in Compromise on your behalf. The Offer in Compromise is in place to assist taxpayers who have little to no chance to pay off their tax debt in their lifetime. A good example of a taxpayer who will qualify for this is a retired, elderly person who barely makes ends meet on a fixed income but owes the IRS a significant amount of money.
Penalty Abatement: Penalties are assessed by the IRS as sort of a punishment for not following the rules. If you tried to follow the rules and couldn’t because of circumstances out of your control, (heck, even if a tax professional gave you advice that you followed thinking you were doing the right thing!), the IRS is not so unreasonable to penalize you for trying and not being successful. There are several circumstances in which a taxpayer is charged penalties and shouldn’t have. If this can be proven (ask an Enrolled Agent for help), the IRS will remove the penalties to effectively lower your tax debt.
Non Collectible Status: If times are tough for a taxpayer and they are working hard but are barely able to put food on the table, the IRS will give you some breathing room to get back on your feet before demanding payment on your tax debt. If you qualify, the IRS will cease any and all collection actions until your situation gets better. However, interest will still accrue so it’s important to only keep your tax debt on the back burner for a short period of time.
Understanding What You Qualify For
It is recommended that when a taxpayer is considering tax relief and/or tax resolution, that they hire a reputable tax professional. IRS Tax Relief Now has friendly and knowledgeable Enrolled Agents that will help you sort through the circumstances of your situation, be sure that the tax debt being assessed is fair and then determine the best way to get into compliance with the IRS with the least impact on your lifestyle.
We offer a free consultation and we’re available 24 hours a day, seven days a week. We encourage you to check up on our reputation. You’ll find that we have a perfect rating with the Better Business Bureau and we’ve never had a single complaint. We’re happy to help you get started in resolving your tax issue. After all, life is stressful enough without the IRS breathing down your neck. Let us help. Contact us today and sleep better tonight!
