IRS Tax Relief Programs

IRS Tax Relief

If you are looking for IRS tax relief information, maybe this will help you. The IRS has several tax relief programs for people who owe back taxes.

There is an Installment Agreement available to people who don’t have the money to pay their tax debt all at once. The program lets people make monthly payments until the whole debt is paid off. Another one that they have is an Offer in Compromise. This lets taxpayers settle their tax debt for less than the amount that they need to pay. The OIC helps taxpayers in limited circumstances.

In some circumstances, the IRS may do penalty abatement to those who did not pay their taxes because of a special hardship. If the person meets the criteria, the IRS may forgive the penalties.  The interest abatement is even more limited and is hardly ever provided.

You can apply for an OIC, Installment Agreement, or interest or penalty abatement without getting the help of a third party. If you would like someone to represent you, only a select few can help.

So if you are in need of tax relief, you should look into what programs you qualify and check with the IRS to see if they can help resolve your problems.

What is the Federal Fresh Start Program?

The IRS created The Fresh Start program in early 2011 to help aid struggling taxpayers. They expanded the program in early 2012 to provide even more relief for people who are mired in tax debt. Here are the relief programs offered under the original and the new Federal Fresh Start Program.

Penalty Breaks

Taxpayers who were unemployed for at least a month in 2011 or before April 17, 2012 are exempt from failure-to-pay-penalties as long as they pay their taxes before the federal deadline. Additionally, taxpayers who qualify for this program can get a six-month extension before their taxes are due. The 2012 due date for the extension is October 15. This program is also available to anyone who is self-employed and experienced more than a 25% reduction in income.

Payment Agreements

If you cannot pay your entire tax bill before the federal deadline, you may qualify for an installment agreement that allows you to set-up a payment plan with the IRS. The only conditions are that you can own no more than $50,000 in taxes and you have to allow the IRS to withdraw money from your bank account every month. The penalties are for doing this are lower now, although you will accrue interest. Small businesses are also eligible for an installment agreement if they owe less than $50,000 dollars or they can lower their debt to under the $50,000 threshold.

Offer in Compromise (OIC)

You may actually be able to pay back less tax than you owe under the Fresh Start Program. The IRS determines OIC eligibility based on your income and personal assets. If the IRS feels you can pay your debt in full or with an installment agreement, you will not be eligible for the tax reduction.

Tax Liens

If you do not pay your taxes, the IRS can put a lien on all the property you own. Starting in 2011, the IRS raised the dollar amount of taxes you owe before the file a lien. They also streamlined the lien withdraw process internally so that if you do encounter this problem, you can get the lien withdrawn quicker after you settle your debt. Additionally, if the IRS does put a lien on your property, you can have it removed it you enter into a payment agreement.

Believe it or not, the IRS is not out to get you. If you are having trouble paying your taxes, visit irs.gov. The IRS website is home to volumes of advice on how to deal with your tax problems including the forms you need and even a series of eight YouTube videos on how the IRS handles collection efforts. Do not wait until it is too late, visit the IRS website today and see what kind of help you qualify for.

About the Author: Julio Pasco is a personal consultant who helps his clients with budgeting and day to day tasks. He spends a lot of time looking for discount and coupons for area attractions so that his clients can learn to save while still enjoying life.

Knowing the tax debt solution secrets that your attorney may not disclose

As an increasingly large number of taxpayers in the US are defaulting on their tax payments, they found out that owing money to Uncle Sam can become a significant problem in the long run. For all those people who fall in the low income bracket, tax debt can be easily avoided but if they do, it should be dealt with quickly and smartly. The problem of unpaid tax debt can soon spiral out of control if not addressed properly through the debt solutions that are available for the debtors. While you may get help from a tax attorney during the tax debt negotiation process, you can also take some DIY steps to avoid being charged unnecessary fees and charges. However, there are some secrets that your tax attorney may not want you to know. Read on to know the tax debt relief secrets that can open your eyes and prevent you from paying the tax lawyer to do work that you can do yourself.

The data entry clerks work on the debtor’s delinquent tax case

When a person is drowning in a sea of IRS tax debt and is also receiving harassing debt collection calls, he becomes desperate about paying back the money by getting help of a tax attorney. They think that negotiating delinquent taxes is beyond their ability but the actual fact is that this work is done by the data entry clerks and not by their tax lawyers. That only a tax attorney can resolve tax issues is a wrong notion that most tax debtors harbor. No one will inform you that majority of the paperwork is prepared by the data entry clerks and the so-called ‘tax lawyers’ simply type the data into the IRS form.

The fees charged are based on how much you can pay and how urgent is your case

You may not be aware of this but the fees that your tax attorney charges you are entirely based on the amount that you can pay and the extent of urgency of your tax delinquency case. Your case may be termed as ‘urgent’ if you’re presently facing tax garnishment of your paycheck or have got a verbal threat from an IRS agent. So, only when you’re under the tax levy, your tax attorney will charge you sky-high fees and even demand upfront payment. So, if you want to avoid them, try out the tax debt solutions like OIC or Offer in Compromise on your own.

A tax attorney hardly spends an hour working on your case

When you’re looking for debt relief options to exterminate your IRS tax debt, you should take wise decisions so that wrong steps don’t dig you further into the debt hole when you’re already defaulting. Most debtors can never talk to the actual attorney because this may take double time than what they spend for your case. If you give a glance at the Offer in Compromise paperwork, you’ll understand. The seemingly-complex forms only contain data about your car payments, electricity bills and address, which is the exact information that you provided to the tax debt firm. Do you need a tax lawyer for the data-entry work? Bet you wouldn’t, that too in lieu of heavy charges!

Therefore, when you missed your IRS tax payments and have amassed a huge amount to be paid at once, negotiate with the IRS representatives on your own. Look for worthy tax debt solutions and take the steps on your own to avoid being subject to outrageously high fees from the tax attorneys.