Are you having trouble paying what you owe the government?
You are not alone. Paying taxes can be a complex process that can cause a financial burden if unforeseen complications arise in your life. Most of the time, people have the intention of following the process and paying on time, but every once in a while, life can get in the way.
The IRS Tax Relief Program can be a lifesaver when you’re in a bind. It’s available to taxpayers who face economic hardship and may not be able to pay their taxes right away – if ever. Today, we’ll explore the different types of tax relief programs that are available through the IRS.
Tax Law Advocates is a team of federally licensed enrolled agents, tax attorneys, and accountants. We all work towards the common goal of helping you solve issues with both the IRS and state tax authorities. At Tax Law Advocates, we are the leader in tax resolution services. Contact us today!
Tax relief can allow you to break down your back taxes into payments or reduce the amount of tax you pay to the government. In some cases, your entire tax balance could be forgiven. Here is how the tax relief process usually works. You meet with our team of tax experts and we assess your situation to determine what major tax issues you’re facing and which solutions provide the best chances of success.
Common strategies include requesting an offer in compromise, an installment agreement, penalty abatement, innocent spouse tax relief, or claiming currently not collectible status. Once we determine the best strategy, we can negotiate with the IRs until there is a resolution.
Types of Tax Relief Programs
For decades, our team of federally licensed enrolled agents, tax attorneys, and accountants have all worked towards the common goal of helping people just like you resolve their issues with both the IRS and state tax authorities. Our step-by-step consultation that helps us understand each unique situation in order to determine the proper course of action that leads to a resolution.
Let’s take a look at the tax relief programs available to you.
If you cannot pay the amount you owe, you may be eligible for an Offer and Compromise settlement that would lower your current debt. Our team of experts at Tax Law Advocates will analyze your current financial situation and measure your income against current financial standards to show that you are unable to pay back taxes on a monthly basis. If we can show that you don’t have enough disposable income and that you can’t afford monthly payments, we’ll negotiate with the IRS to establish a settlement. The outcome is frequently a 90 to 99 percent reduction of the overall tax debt owed.
When you are unable to make payments on your taxes, the government will take action. Unfortunately, the consequences of this can include seizure of your assets.
When the IRS files liens against you in order to get you to pay what is owed, it can be difficult to borrow money for any number of life’s necessary expenses, such as buying a new car, refinancing your home, or taking on a business loan.
If you have a levy against you, it allows the IRS to seize your property to satisfy their debt. Whether a lien or levy, it can be devastating to you.
No matter your situation, you do not want to suffer the day-to-day consequences that a lien or levy causes.
An installment plan or a payment plan is often possible to help you pay your taxes over time. To determine if you are eligible for a payment plan, you must complete a personal financial statement and (if necessary) a business financial statement.
In order to get the most from an IRS installment agreement, it is in your best interest to get the help of a qualified tax professional like Tax Law Advocates.
We have the knowledge and experience to make the best case possible, especially at this very important and detailed phase of the process.
There are a few requirements to be able to enter an installment agreement.
- You must all tax returns filed
- You must disclose all assets
- You must supply records of your checking, saving and investment accounts to prove you cannot pay what you owe.
- You must prove that you’re unable to get the amount you owe in taxes by other means (getting a loan or cashing out retirement, for example.)
Once everything is properly submitted, your case will be evaluated by the IRS. If you qualify, you will be given the advantage of an installment plan and can begin getting out from under the burden of tax debt.
Currently Not Collectible (CNC) Status
For those who have income limits or other restrictions, CNC status may be an option. This status stops collection activity from the IRS against your account until such time as they can resume collecting under another strategy or when circumstances change so that it may be possible again in the future. The IRS will conduct periodic financial reviews to see if your financial situation has changed enough that you’re able to make full or partial payments. Failing to answer IRS requests for documentation could get you kicked out of the program.
While having this designation won’t get rid of all penalties and interest charges associated with unpaid taxes owed, it can give you a break while you get back on track.
The innocent spouse is one who has filed joint returns but had no knowledge of any fraud, perjury or misrepresentation on the part of the other spouse. The innocent spouse can petition for relief under IRC 6015(b) if they can prove that:
- They did not know about and had no reason to know about their spouses’ wrongdoing at the time they signed the return;
- They would not have agreed to file jointly if they had known about their spouses’ wrongdoing; and
- It is unjust to hold them liable for the tax or any deficiency.
The IRS does not have to prove that the other spouse knew about their wrongdoing for them to receive relief. The burden of proof falls on the taxpayer filing for innocent spouse relief.
Qualifying For Tax Relief
You may be surprised to learn that it is not a crime to owe back taxes to the government. However, it is illegal if you don’t file your tax returns.
In order to qualify for any tax relief, you must have all of your tax returns filed. Tax Law Advocates can get you on your way to tax relief by helping you get into compliance with these requirements with our tax preparation services.
Whatever your unique situation is, the Tax Law Advocates team of federally licensed enrolled agents are ready to help you solve your tax problems. We are determined to provide you with the best service possible. The dedication we have to our clients has held firm for more than two decades.
Contact us so we can discuss the best strategy to resolve your tax issues. Complete the contact form, call us at 915-612-7777 or text “START” to 25364.