People’s tax returns from the IRS may be a nightmare. If you do not pay your taxes on time, the IRS may levy fines or take your property or other assets. If you owe the IRS a lot of money, you are not alone in this game. According to federal research, almost 21% of netizens do not have enough money to properly pay their taxes.
If you stand among such citizens then worry not. Though the IRS charges penalties, they also provide relief to needy citizens. If you owe large taxes then you can get a relief of paying your taxes in installments, rather than paying all at once. This relief makes you free from the burden of taxes and lets you manage your business easily.
In addition, if you think that there are reliefs that wipe out the taxes completely then you are mistaken. You can contact Coast One Tax Group for valid or legal advice on your back taxes. Moreover, we have explained here briefly as well about the possible tax relief and how you can avail them.
What is Tax Relief For Taxpayers?
Tax relief is a relief in the amount of money you owe to the IRS in the form of taxes. This relief does not always imply that you have no monetary responsibility to the IRS. Conversely, this relief involves getting payment plans for your heft taxes or cutting a little bit of the tax from the whole amount. This relief lets you carry the burden of taxes easily.
In order to get the relief, you need to provide evidence that you are eligible for certain relief. Then you can negotiate with IRS officials in order to get the relief.
How Does Tax Relief Work?
Tax relief can be granted to legally eligible individuals who are not in the situation to pay off all of their taxes. They can negotiate with the IRS and get the following reliefs.
1. Payment Plans
Making installments of your existing overdue payments is the best and simplest option to seek relief from your tax issues. Typically, the IRS will not authorize these installments unless you negotiate with IRS authorities and demonstrate that you fulfill their specific requirements. To grant you installment approvals, the IRS has the following general words.
- You must be able to show that you have already filed your taxes.
- You’ve always been on time with your tax payments.
- You can choose to pay a certain amount each month.
- If you wish to apply for a short-term payment plan, your debts cannot exceed $50,000 USD (i.e. You can pay your debts within 180 days)
- If you wish to apply for a long-term payment plan, your debts cannot exceed $100,000 USD. Business owners can also qualify for a long-term payment plan provided their debts are less than $25,000 USD.
2. Offer in Compromise
This strategy entails paying less than your entire debts. You must persuade the IRS that you are not in a position to pay that much tax.
As a result, you must be offered some relief in return for a reduced sum. If you agree to the following terms, the IRS may accept your offer in a compromise request.
- Your sources of income are insufficient to cover your tax obligations.
- Your expenditure does not surpass your revenue sources.
- You have no assets or equity.
To make a request for an offer in compromise, you must also deposit a $256 charge and some initial payment, which is non-refundable regardless of whether your application is granted or not.
3. Relief For Innocent Spouse
This programme is designed for those who previously filed joint tax returns as a couple but are now legally divorced. If, for example, your spouse performed the following, you will not be required to pay any communal taxes.
- He or she does not report his or her wages or reports improperly.
- Falsely misrepresented his or her income to the IRS and claimed unallowable credits
If you can substantiate these facts and show your separation paperwork, you will not be required to pay collective taxes.
4. Currently Non-Collectible Status
If you are currently unemployed or in financial distress, the IRS can simply exempt you from paying your taxes. All you have to do is provide the IRS with your current financial situation. Once authorized, you will be assigned the status of presently non-collectible (CNC). Your status will be altered once you have recovered from your financial problem. The IRS comes to your house every two years, but they may visit at any time to check your current status.
5. Penalty Relief
Penalty relief or interest abatement is the relief on your penalties. In the event that you are late with your taxes for the first time, or if you have been paying on time for the prior three years but are suddenly unable to do so due to a valid cause, the IRS may be able to forgive your back taxes. You must demonstrate that you were unable to pay your taxes on time due to a natural disaster or sickness. The IRS will investigate your circumstances, and once it is determined that you are not guilty, your past taxes will be eliminated.
How to Get Back Tax Help?
If you want back tax help then you can contact the tax relief companies. These relief firms are private organizations that assist you in settling your bills with the IRS. These firms typically employ tax attorneys or seasoned tax lawyers who are well-versed in all legal jargon.
Moreover, these firms provide you with a complimentary consultation on what to do and how to approach the IRS for debt relief. These groups can also assist you in negotiating with the IRS. Their attorneys can advocate for you and negotiate with IRS authorities using credible arguments and proof on your behalf.
SUBSCRIBE FOR MORE! HERE'S WHY:
1. You get 7 free books
2. You get the best money & productivity articles
3. You get the latest updates - all in one email per week