Taxes can be confusing and complicated, especially if you’re worried about tax debt. IRS penalties can mount up if you missed your tax bill for several years. Luckily, you can take steps to solve your tax problems. The IRS is often willing to work with taxpayers who want to handle back taxes. The American Rescue Plan Act Of 2021 expanded these options even further. Learn about tax relief services to get back on track.
What Tax Relief Is Available For People With Back Taxes?
The IRS offers four main types of tax relief. Most people wind up with tax liability because of honest mistakes, not their own crime or fraud. Victims of tax-related identity theft can also benefit from a tax relief program. Tax programs can improve your FICO credit report, remove tax levies from your paycheck, and help you avoid bankruptcy. Explore the most common types of tax relief to see how you can benefit.
Debt Settlement Through An IRS Payment Plan
If you can’t pay your back taxes all at once, the IRS may accept monthly payments through a payment plan. These installment agreements help you pay your tax bill in small chunks over time. You’re still responsible for interest and fees on your account if you use these plans. IRS tax relief programs include two different kinds of payment plans.
Short Term Monthly Payments
You can apply for short-term monthly payments if you owe less than $100,000 in tax, penalties, and interest charges. You’ll need to pay your account within 120 days or less. There’s no cost to apply for this payment plan. If you’re accepted for this type of installment agreement, you can make monthly payments from your bank account. You can also pay with a check, debit/credit card, or money order.
Long Term Payment Plans
If you need more time to pay your tax bill and owe less money, the IRS also offers a long-term debt settlement option. You can only use this plan if you owe $50,000 or less in total taxes, fees, and interest.
There is a charge to apply for a long-term plan. You’ll need to pay between $30 and $225 for your application, depending on how you want to make your monthly payments.
Resolve IRS Penalties With An Offer In Compromise
An offer in compromise (OIC) is another way to deal with your back taxes. This program lets you make a deal with the IRS. You agree to pay what you can afford. In return, the IRS will clear your account.
The Fresh Start Program expanded the OIC system to make it easier to enter this arrangement. However, the IRS won’t compromise in every situation. You’ll need to prove that your federal tax lien is a major financial hardship. It’s a good idea to work with tax professionals from well-rated tax relief companies if you want to make an OIC. Book a free consultation from a tax relief company like the IRS Tax Relief Network to learn more.
To qualify for OIC tax relief, you need to prove you can’t afford to pay your bill. The IRS will look at your old tax forms, refunds, and property taxes to learn about your financial situation. You’ll also need to share your income, expenses, assets, and equity. The good news is that you’ll enjoy penalty abatement if your offer is approved.
Currently Not Collectible Tax Relief
Tax levies and tax liens can be expensive. If you don’t have the budget to pay your living expenses and your tax bill, you can request “Currently Not Collectible” status. It can take a long time to see any penalty relief from this program. Your account needs to go to collections before you can make this request.
The IRS will ask you to prove your financial situation. Find your old tax return, tax rebate check stubs earned income status, and more. Resources like the consumer affairs decision guide can help you prepare for this process. You can also request free consultations from reliable tax attorneys to learn more about your options.
Currently Not Collectible status doesn’t last forever. The IRS may check on your account every year to see if your finances improve. They can also place a federal tax lien on your assets while your account is Currently Not Collectible.
Hire Tax Attorneys And Other Tax Resolvers Through A Tax Relief Company
You can find federal, state, or property tax relief by working with professional tax resolvers. These companies employ experts like attorneys, accountants, CPAs, and IRS enrolled agents to help solve your back taxes.
Do You Need Tax Professionals?
It’s a smart idea to get experts on your side, especially if you’re dealing with complex problems. Tax debt is a big issue that can ruin your financial options. Identity fraud and identity theft victims should book a consultation to explore their options.
Other complicated tax issues also need a professional touch. If you have unusual assets, need payroll tax help, or are worried about your earned income tax credit, a tax company can help you understand your options.
How Tax Companies Resolve Your Tax Liability, Tax Liens, And Back Tax Debt
Companies like the IRS Tax Relief Network use a proven method to settle your back taxes. We start with a free consultation to learn about your situation. Next, we build a plan to work with the IRS. Whether we try a payment plan, OIC, or another method, we’ll cut as much money as possible from your debt.
If you approve our plan, we go to work on your behalf. Most IRS Tax Relief Network clients never need to talk to the IRS directly. Your problem will be solved before you know it.
Book A Free Consultation With Our IRS Enrolled Agents To Learn More
You may have found Larson Tax Relief, Community Tax, and other tax relief services online. It’s important to do your research. You should only trust your taxes to a reliable company like the IRS Tax Relief Network. We offer free consultations, services that are easy to understand, and a proven track record of success. Contact us today to learn more about your options.
