Being in debt to the IRS can certainly create anxiety. However, tax relief is available to help relieve your tax debt. There are options available to assist you if you have yourself in debt to the IRS. On this page, we will consider IRS tax forgiveness and debt relief facts.
Many people prefer to hire a tax attorney and IRS representative to receive maximum benefits from the IRS debt relief and tax forgiveness programs. These programs are usually set up for taxpayers who need assistance with their back taxes and are looking for tax relief. However, it is still important for people to know these facts.
It is not uncommon for taxpayers to incur huge tax liabilities owing to circumstances beyond their control. A perfect example is when a taxpayer gets ill and spends a large amount of money on medical expenses that he or she could not afford. Another common situation that causes tax liabilities to arise, is when a taxpayer engages in business ventures that lose money.
In such cases, the IRS will be forced to fine the taxpayer for not paying their taxes on time. Such situations naturally result in a large tax liability that becomes hard to pay off. Having options is important. Tax forgiveness is one option to consider when looking for tax relief.
Calling the IRS For Tax Forgiveness
Calling the IRS will require patience, but can yield success in some instances. If your tax debt is manageable and you are in a position to make monthly payments to the IRS, it is possible to set up an installment agreement with them. Remember to put any agreement is in writing. However, keep in mind that interest and penalties can be high. Eventually, you will find the tax relief you are seeking.
What Can You Do About IRS Tax Debt?
Taxes and death are two aspects of life that one has to face. However, each year, many people find themselves owing the Internal Revenue. You will not only be owing the unpaid tax but also penalties for late payment and high interest fees if the tax debt is not paid on time.
Luckily, IRS can work out a deal with defaulters, who show the willingness to pay. Check the existing tax forgiveness options and select one that works for you.
Installment Plans to Find Tax Relief
These plans are the same as mortgage repayments, although this time, you pay the IRS rather than the lender. A tax installment plan is a payment arrangement with the IRS, and the taxpayer needs to meet the following criteria to join the plan.
• You have submitted an IRS tax return
• You have paid most of your income taxes and penalties
• You can pay a regular minimum payment
It is easy to qualify for a tax installment plan. However, as an agency responsible for collecting taxes, the IRS does not want to enter into payment arrangements with absentee taxpayers. The agency will not give you tax forgiveness if you owe them over fifty thousand dollars in arrears. Consult a certified tax specialist to assess your options.
Offer in Compromise For Tax Debt
The IRS often considers a settlement that allows the taxpayer to pay a significantly reduced amount of the IRS tax owed. It is some form of tax forgiveness, and the taxpayer will have to convince the agency of their inability to pay the owed IRS tax and offer to pay the reduced amount in full or in installments.
The IRS will provide you will a special form to request the offer in compromise, detailing information about your spending habits, income, equity, and other investments. It will evaluate your application based on these factors and determine whether you deserve tax forgiveness, and the amount you can afford to pay. If accepted, you will have 48 months to settle the tax debt.
Tax Debt And Wage Garnishments
If you owe the IRS and have not agreed on payment, the agency can compel your employer to withhold your salary through courts. It may also withhold other federal payments, such as IRS tax refunds and social security until you settle the debt.
If your wages are withheld, contact the agency and propose an acceptable offer. The IRS may consider waiving your tax through its tax forgiveness program.
Spouse Programs For Tax Debt
If you file an IRS tax return jointly with your spouse, you become personally responsible for an underpayment, even if separated. Luckily, there are some reliefs for separated or married couples when a spouse conceals an IRS tax liability from their counterpart. You have to show that your partner misled you by taking unpermitted credits or deductions to qualify for tax forgiveness.
You will have 48 months to contact the agency to apply for spouse relief. If you agree with the tax agency, ensure you pay the tax debt in a timely fashion. The IRS does not entertain defaulting, and it will impose penalties and interests on the amount owed.
Tax Lawyers For IRS Tax Forgiveness
Many people are unaware of the many advantages of hiring a professional tax attorney to help with IRS tax forgiveness. Hiring someone who has vast experience in tax law can help you reduce your taxes. Additionally, it can remove the worry of tax fraud.
A tax attorney can help you understand the IRS rules and regulations better and help you take action to ensure that you pay the appropriate tax amount every year. In addition to this, if you are charged with tax evasion or fraud, a tax attorney can also advise you on how to go about appealing the court’s decision and/or resolving a dispute.
Tax Debt And Facing An Audit
Even though it isn’t required, many people who have faced a tax audit or investigation choose to hire a tax lawyer instead of a CPA to represent them during the audit process. “The attorney can guide you through the processes of both an internal audit and an IRS audit, helping you prepare and answer questions that will help you present a positive case against the IRS auditor,” says David A. Freimond, a Seattle-based tax lawyer. “
In some cases, tax evasion is not really a crime, but a civil violation. For this reason, you might want to hire a tax lawyer rather than a CPA or company tax attorney who deals with estate and family business matters.
Taxable Income And Tax Relief
An increase in taxable income can eventually make it difficult for a person to pay their taxes on time. Many people then resort to filing for tax forgiveness the IRS grants. However, the process of filing for tax forgiveness is not easy. In fact, there are certain conditions which must be met before one will be granted tax relief. Here are some of these conditions:
The taxpayer should be suffering from a financial crisis. Being overburdened with tax liabilities can make it almost impossible to pay back what you owe the IRS. This is why the IRS seeks such individuals for tax relief.
Contact A Tax Lawyer
If you feel that you need some tax relief or tax forgiveness but are unsure how to go about it, you can contact your tax lawyer for some assistance. There are tax lawyers who specialize in dealing with IRS debt relief. They will help you determine the course of action to take to solve IRS tax debts.
Tax Relief Program
The IRS tax relief program was introduced in 2021. Previously, it was almost impossible for taxpayers to overcome their tax problems and find tax relief. The new tax laws had made filing taxes much simpler, but that does not mean that the tax debt is easier to manage.
That is why the IRS provides tax relief or tax forgiveness programs to encourage tax payment. Even though many tax debt solutions can be followed, it is still better to deal with an attorney-tax lawyer who can best guide you regarding the IRS tax debt relief program’s legalities.
Negotiating With IRS For Tax Forgiveness
Since the IRS tax debt solution lowers the taxpayer’s liability, the IRS is also open to negotiation. This means that you can also seek a reduction in the tax dues on your own. If you hire a lawyer to represent you and negotiate with the IRS, then you can be certain that you will receive a bigger tax waiver.
Finding A Tax Attorney For Tax Forgiveness
To find a suitable tax debt lawyer, you need not look too far. The American Bar Association has a list of qualified attorneys. You can also check out your local telephone directory and the Internet to get the names of reputable tax debt relief lawyers. In this way, you can ensure that you get to pay less money to the IRS in return for a smaller tax debt liability.
So if you face a serious tax problem and are contemplating bankruptcy, you should now approach a tax debt relief attorney. He will help you weigh your options and make a decision that will benefit you and the IRS.
Tax Attorney Fees
The fees a tax attorney charges are based on several factors. First, what are reasons a tax attorney is needed? What kind of case is it? How experienced is the attorney? These and other factors will determine his or her fees.
However, a client can expect to pay $200 to $400 an hour for their services. Depending on how complicated your case is, this can be well worth the cost to you. It can ultimately end up saving you thousands of dollars in tax debt.
Filing Your Return
Tax attorneys can also help you save time when it comes to filing your annual return. There are two basic formats for returns: the electronic filing program and the paper filing program. If you want to file your return online, it is necessary to download the correct software, which will cost money.
The paper filing does not necessitate downloading anything, as there are many options available that allow you to fill out the forms on your own. In some cases, a tax professional may fill out the forms for you.