Are you being harassed by the IRS and state tax authorities about your debt? Need help figuring out what to do? You can ignore the problem even if it is impossible to pay.
Consider calling a tax relief agency to help you. This guide will explain how tax relief companies operate and the services they offer to taxpayers in distress.
What Is A Tax Relief Company?
Companies that offer tax relief help individuals and companies resolve federal and state tax debt. Many companies have a team that includes Enrolled Agents, tax lawyers, and tax experts who can help clients find effective solutions to their tax debt.
Services offered by tax relief companies
There are many services available, depending on what you need.
Consultations
A tax relief company will usually offer a consultation free of charge when you contact them for help. A team member will also review your situation and discuss possible relief options.
Review Of Tax Filing
They will examine your tax records after the initial consultation if you hire them. Based on the findings, the tax professional you are working with will inform you of the next steps in obtaining relief from unpaid tax debt.
Tax Relief Programs
To help reduce unpaid taxes, tax relief companies use programs offered by IRS. These include offers in compromise, installment agreements, and innocent spouse relief. They also provide penalty abatement and status that is not currently collectible. These will be covered in more detail shortly.
Tax Settlement
The tax relief agency will work directly with the IRS to minimize your tax liabilities. You could make an offer in compromise, penalty abatement, or a partial payment installment agreement. You could be able to appeal the penalties or settle the debt due to your inability to pay it.
IRS Appeals
They can appeal the assessment of fees and penalties to you if they believe the fees or penalties are wrong. You could also use certain appeals to buy time, claim that the IRS hasn't followed proper procedures, or appeal the denial or audit.
Different Types Of Tax Relief Programs
Here is a list of common programs that help taxpayers get relief.
Offers In Compromise
An offer-in-compromise is a deal between the IRS and taxpayers to settle unpaid tax debts for less than what's due. This option is available to taxpayers in financial hardship. The application process can be hard, and you may need to hire a tax resolution company to improve your chances of approval.
Innocent Spouse Relief
If the IRS determines that you aren't responsible for any tax debt owed to your spouse, you can receive innocent spouse relief. If you are granted innocent spouse relief, you will be exempt from any responsibility for the unpaid debt.
Installment Agreement
Installment agreements, also known as short-term payment plans, are an option for taxpayers who can't pay all their debts. These agreements allow you to extend the time it takes to pay your balances by paying monthly installments. Although you will accrue interest on the balance, it is better than facing severe financial consequences from IRS.
Penalty Abatement
You may be eligible for penalty abatement "first-time," which reduces some or all of your tax debt if you have never had any debt with the IRS.
What To Do If You Owe Back Tax To IRS?
There is still hope, even if you owe large amounts of back taxes to IRS. You can ignore the collection notices, which could lead to a tax lien, bank levies, and wage garnishments. This is bad news for your finances. Hire a tax relief firm to protect your finances and avoid aggressive collection. Polston Tax provides best tax resolution services at very affordable prices.
