The old saying that nothing is certain in life except death and taxes has never been more accurate or frightening. In the current environment, fear of the IRS is creeping in, and nothing will get your heart racing quite as fast as opening the mailbox and finding a letter from the tax agency.
When the IRS comes calling, you might think there is nothing you can do. You may worry that you will have to liquidate your assets, sell your car, or even put your home on the market to afford what the IRS says you owe.
The good news is that you may not have to pay that total amount, and before you write that big check, you should check out the alternatives first.
The IRS understands taxpayers fall behind on their taxes, and they have programs in place that can reduce the amount you owe or make paying the tab a little easier.
Note: As a tax resolution firm, we always recommend that you reach out to a professional who knows how to negotiate with the IRS on your behalf aggressively. If you owe back taxes, our firm can help deal with the IRS and potentially settle your tax debt. Schedule an appointment by clicking on the link at go.oncehub.com/AllanJRolnick. Our tax resolution specialists can navigate the IRS maze so that you should not worry about it.
With that said, here are some of the most common tax relief programs the IRS has to offer - and how you can access them.
#1 Payment Plans
Otherwise known as installment agreements, one of the most common ways taxpayers approach their back taxes is by setting up a payment plan. This type of program is a popular one, and for a good reason - it can significantly reduce the stress you feel as you deal with an unexpected tax bill.
This approach has pros and cons, and it is essential to explore your other options carefully. You will need to pay the entire amount you owe with a payment plan, but you can stretch the repayment out over months or even years. However, keep in mind that the IRS will continue to charge interest on the remaining balance, so this option will require you to pay more than the amount you owe.
Offer in Compromise
Another program the IRS offers is known as the offer in compromise, or OIC. This option allows eligible taxpayers to settle their tax debts for less than the IRS says they owe, and that means you could save money if you qualify for this program.
The offer in compromise is not suitable for everyone. It is crucial to work with a tax relief expert or tax resolution specialist to explore this kind of compromise. If you have significant assets, the IRS may not be willing to settle, but if you are tight on cash, the offer in compromise arrangement could be the way out of the trouble you find yourself.
IRS Hardship Program - Currently Non-Collectable
The IRS hardship program is another option for taxpayers who are financially unable to pay what they owe to the tax agency. If you are genuinely strapped for cash and worrying about your tax debt, you should check out the hardship program, but you should not try to work with the IRS on your own.
The hardship program has some particular requirements, and if you make a mistake when applying, you could find yourself locked out of the process. By working with a tax resolution specialist, you can increase your odds of success and possibly save yourself a lot of money in the process.
What is the best option?
As you can see, the IRS does offer several programs that can reduce the amount you owe - or even forgive your tax debt altogether. If you are eligible for one of these tax relief programs, you could find yourself breathing a lot easier, but the IRS is not likely to give you the information if they do not have to.
As a taxing authority and agency, the IRS is interested in keeping these relief and resolution programs under wrap. Their goal, after all, is to collect as much money as possible, and telling taxpayers that they can pay less is not in their interest.
It is crucial to work with a tax resolution professional whenever you are dealing with an IRS problem for all of those reasons and more. Whether the debt results from years of unfiled taxes, a discrepancy in the amount reported and what the IRS says you owe, or anything else, specific expertise can make a huge difference - and save you a lot of money in the process.
Knowing about the tax relief and favorable resolution options the IRS offers is the first start, and that education can be a huge point in your favor. Now that you know what types of programs are available, it is time to take the next step, so click on the link go.oncehub.com/AllanJRolnick, your tax resolution specialist, today.
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