What Is Tax Debt Relief Help?
The Internal Revenue Service (IRS) and State Tax Authorities both understand that tax payers will from time to time not have the ability to pay the taxes that are due. This happens so frequently that the IRS and State tax boards have created tax debt relief programs to help people in this situation. This is great news, however the drawback is that just like all things taxes, there are dozens of options, complicated qualifications and challenges in determining which tax debt relief plan gives you the best advantage.
This where Professional Tax Debt Relief Help comes in
A tax professional will review your exact tax debt(s) and financial situation, they will determine the tax relief options you will most likely qualify for with the IRS or State tax board. Finally and most importantly they will then work for you to process your request for tax relief and see it through until you have achieved results. Tax Relief Services are using IRS and State Tax Board programs to provide relief to you. Just as you may use an accountant to handle complicated tax returns, people with tax debts use tax professionals to handle their tax relief issues.
Common Tax Debt Relief Programs You May Qualify For
Offer in Compromise (OIC)
An Offer in Compromise is an agreement that allows taxpayers to settle their tax debt for less than the full amount. The IRS Fresh Start tax debt relief program expanded and streamlined the OIC program. The IRS now has more flexibility when analyzing a taxpayer’s ability to pay. This makes the offer program available to a larger group of taxpayers. Please note the IRS Tax Debt Relief Programs can change frequently. Please refer to the IRS website for the latest information on Offer and Compromise programs
Generally, the IRS will accept an offer if it represents the most the agency can expect to collect within a reasonable period of time. The IRS will not accept an offer if it believes that the taxpayer can pay the amount owed in full as a lump sum or through a payment agreement. The IRS looks at several factors, including the taxpayer’s income and assets, to make a decision regarding the taxpayer’s ability to pay. Use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if you may be eligible for an OIC.
The IRS may assess a variety of penalties on your tax account including late filing and late payment fees. Sometimes the penalties dwarf the actual tax debt.
This agreement allows you to pay your full debt in equal, yet smaller and more manageable amounts.
Partial Pay Installment Agreement (PPIA)
A payment agreement whereby the total number of payments made to the IRS is less than the total amount of tax due, when full payment cannot be completed prior to the expiration of the statute of limitations.
Tax Lien Discharge
You relinquish your rights and allow any property with an IRS lien to be sold free and clear of the tax lien.
Tax Lien Subordination
Allows a “junior” creditor to move ahead of the IRS for claim on the property.
Tax Lien Withdrawal
Your tax liability is satisfied and the lien is released.