Ways to Obtain Tax Relief
- April 28, 2019
- Posted by: asal
- Category: Tax Relief
Obtaining tax relief could be very daunting, if you are clueless about how and where to find it. Tax debts can make anyone full of stress, pain and agony. If you are going through the same situation, you might ignore the chance of obtaining tax relief because of your current mental statement.
Therefore, you should keep your eyes and mind alert while seeking tax relief. Moreover, you should not ignore any correspondence or call from IRS. It will give them an impression that you are running from your responsibility of paying back taxes. So, rather than ignoring IRS, answer correspondences and their calls to inform them you are working out with the back taxes and ask if you can get more time.
These days you have several ways to find what tax debt relief options you can avail. Firstly, you can browse through internet for this information. There are thousands of websites that provide information on taxes. However, most of these sites are not authentic. Therefore, experts always suggest that a tax professional should be approached in an event of tax debt issues. It will not only make you aware of the ways to obtain tax relief but also helps you professionally to deal with the IRS.
You can choose from variety of tax professionals depending on your requirements and their experience and qualification. Best options could be tax lawyer, tax attorney or CPA. One thing that every tax professional would suggest you is: the sooner you are going to settle your taxes the less interest and penalties, you would need to pay.
Filing Taxes and Back Taxes
Before staring off with your venture of tax filing, you will come across several things that seem to be impossible. However, every problem has a solution. Therefore, you should start from the basics. If you have not filed your return, file it now no matter you are two months late or three years late. Filing your taxes will allow you to solve IRS back taxes quickly and your penalties and interest will get reduced. In case, you are not filing taxes for several years, not only tax dues would keep on piling but you would need to face serious IRS problems as well.
Failing in filing taxes means, you are more likely to face brutal collection techniques of the IRS such as wage garnishment, seize on bank account etc. If IRS file a criminal case against you, consequences could be more serious where you can be detained by the authorities until you clear the back taxes. In these severe conditions only expert tax professional can save you from the IRS. He/she would assist you in saving money as well as time by informing you what can be done immediately to resolve the back taxes issues.
Tax Relief – What Options You are With
Every taxpayer looks out for ways to reduce his/her taxes. Even IRS has introduced several provisions that allow taxpayers to save money. However, most of the taxpayers are not aware of the IRS relief programs. If you’re facing tax issues and IRS is sending you letters to recover the money you owe, you should do something about them quickly otherwise you might not like the consequences. If you fail to make the payment in time IRS is authorized to garnish your paychecks. Moreover, they can put a lien on your home, car and other valuable assets.
There are only a few people who don’t pay their taxes in time despite having funds to make payment else everyone who has not paid taxes in time is facing some problems such as a death in the family, job loss or long time illness. Even IRS considers these facts and gives a chance to negotiate. This is the time when you need to hire a tax expert who can negotiate with the IRS on your behalf and reduce your debts and helps you in getting tax relief. A tax attorney will try several things to reduce your debt.
What is Offer in Compromise or OIC?
One such option is Offer in Compromise (OIC) which is considered as one of the best options to solve tax debt issue. OIC is offered by the IRS but tax expert needs to negotiate with the tax authority to get OIC. IRS will consider how much tax debtor can pay in one shot. Before that, tax expert would try to prove that the filing was correct and the taxpayer doesn’t owe a thing. Another option that can help you to get rid of tax debts is an agreement for installments.
This is the same as that of paying on a monthly basis. If IRS found you ineligible for an offer in compromise, they might consider you for an installment agreement. It depends on the negotiation skills of your tax attorney, how much amount he/she can reduce from your debts and transform them into easy installments.
If you were not able to pay your taxes in time or filed your taxes with errors. IRS will send you a letter to recover money. In case, you don’t respond in time or do not respond at all. they can garnish your paychecks and your property and valuable assets will be on the lien.
is another way that can make you free from debts. However, the calculations will be made by the IRS. Penalties and charges will be levied as per IRS. Therefore, it’s better to hire a tax attorney who will negotiate with the IRS and remove the wage garnishment. In this process, the attorney will try to reduce your payable amount and convert into installments, if you don’t qualify for an Offer in Compromise.
Since tax law keeps on updating, new ways of getting tax relief come into the picture. So, you should know about these changes. If it is not possible for you to hire a tax attorney because it is their job to keep up with the changes in tax law.