Offer in Compromise
Imagine only paying a fraction of your tax debt to satisfy your tax obligation. An Offer in Compromise allows you the opportunity to settle your tax bill with the IRS while paying less than what you actually owe. This program can assist eligible individuals reduce their outstanding tax liability. The true intention of an Offer in Compromise is aimed at providing tax relief to those experiencing financial hardships and cannot afford to pay their tax debt. The IRS will consider your specific facts and circumstances such as ability to pay, income, expenses and asset equity. An Offer in Compromise can be the ideal solution for resolving your tax problem as it can significantly reduce your tax bill.
IRS Fresh Start Program
If you are financially drowning and struggling to get by, there is hope for you. The IRS Fresh Start tax program can aid taxpayers who owe substantially more than they can realistically afford to pay. Individuals that are eligible can significantly reduce their federal tax debt. In some circumstances, you may be able to reduce 90% or more of your tax obligation.
The Fresh Start program is considered the best opportunity to reduce tax debt for some individuals. It was developed for taxpayers having financial challenges diminish their tax liability therefore allowing them to set up a payment plan and getting back on track. It may be beneficial to learn about the program’s requirements and the application process to determine if you qualify. The Fresh Start program may potentially shave off months or even years of payments to the IRS, freeing up money for you to take care of financial needs that you wouldn’t normally have.
Are you currently in a good financial situation where you might be able to repay your previous year’s taxes over a length of time? Although you do not need to pay your entire balance, you may be able to negotiate a reasonable deal with the IRS to make monthly payments over an agreed time frame. An Installment Agreement is as the name implies a payment plan. It provides the opportunity for a taxpayer to pay an agreed-upon payment each month. These payments will be applied directly to the overall tax debt and continue until the individual satisfies their debt in full.
Once the Installment Agreement has been established, the IRS will halt all aggressive collection efforts against you, which possibly may include levying your paycheck or your bank accounts. As long as you continue to honor your installment agreement and filing of tax returns, the IRS will cease punitive damages. The Installment Agreement allows you to demonstrate to the IRS that you are willing to be accountable and pay your tax obligation.
Life is hectic and challenging to say the least. Staying on top of financial matters may be overlooked at times. However, filing your tax returns or even paying your taxes on time can be overwhelming. Despite your best effort to stay current with your tax debt, situations arise that may prevent you to pay your tax bill on time resulting in penalties.
The IRS has the power to assess a wide variety of penalties on taxpayers who fail to file or properly pay their taxes. These penalties can quickly accumulate up to be hundreds or thousands of dollars, thereby making it difficult for taxpayers to pay off their tax debt. However, you might be able to get those penalties removed to help you manage your debt. You may qualify for penalty relief, otherwise known as IRS penalty abatement. You must be able to provide documentation to support your inability to meet your tax obligations arising from unfortunate circumstances beyond your control.
Currently Not Collectible
Unfortunately, while you have every intention of being a law-abiding citizen, you may experience a financial hardship and discover that you cannot afford to pay your tax debt. If your objective is to pay off your past due taxes but cannot afford to accomplish that at the present time, you have an option to request Currently Not Collectible status from the IRS.
As a result, it may also be foreseeable that IRS collections be suspended too. To qualify, you must be able to demonstrate that you have little to no assets. Most importantly, you must prove that paying your tax debt would create a privation.
Innocent Spouse Relief
Did your spouse or former spouse improperly report or omit items on your joint tax return? The IRS can sometimes hold you accountable for a tax debt that is actually the responsibility of your spouse or ex-spouse.
If the actions of your spouse caused the tax problem without your knowledge, you can request a tax resolution called Innocent Spouse Relief to have the tax debt and penalties removed.