Every taxpayer tries to comply with the tax law while filing taxes. However, genuine filing compels them to pay hefty amount just to pay taxes. Therefore, while saving money that end up making mistakes and silly errors that highlight their name in the IRS’ systems. This happens only because of lack of knowledge and carelessness. Have you heard of IRS relief programs? There are several programs introduced by the IRS that can help you in getting rid of back taxes and reducing your liabilities as a tax payer. One program that has been developed by the IRS is IRS tax relief settlement in which as a taxpayer you can settle your debts with then IRS by paying a percentage of the taxes you actually owe.
Another option is Offer in Compromise (OIC). In this program as well settlement takes place and you’d be paying less than your unpaid taxes. However, you’d need to make the payment in one shot. This is kind of one time offer to get rid of all your debts at a reduced amount which can be fraction of what you actually owe. You will also get relief, if your case fall under the category called doubt as a liability in which, your tax filing was correct however, there was some doubt. Sometimes, IRS gives you relief if they doubt that you ever be able to clear your debts or not, this scenario is called Doubt as to collectibility
If you’re facing financial hardship and you can prove that in court, IRS will make some provisions for you. This is called Effective tax administration which means taxpayer does not have any issues with the calculated tax and amount he/she owes but due to economic he is unable to pay the taxes. IRS does consider situations where it becomes impossible for you to pay the taxes. This tax relief program is known as Penalty abatement. Where you can file a petition against penalties and late charges and negotiate to pay the actual amount that you owe. Some of these situations are personal such as death in family, divorce, long time illness and job loss. If you were facing hardship beyond control such as flood, fire, earth quake and any other natural disaster, even then you can get penalty abatement. If you want to get penalty abatement, you should not refrain from hiring a tax professional.
Experienced tax attorney will have knowledge about all tax relief programs and how can they be beneficial for you. If you cannot pay debts in one go they will try to convert the amount into payment plan. This is one of the most sought after options for the tax payers as they can get rid of the debts by paying small amount of money every month. If you’re in a sate that you cannot pay a penny currently, your account will be put in “not currently collectible” list. In this case, collection activities will be placed on hold until you can accept OIC or a payment plan.