Get IRS tax relief using IRS payment plans and new tax relief initiatives
The IRS offers several payment plans and IRS relief initiatives for taxpayers who are unable to pay their tax debts in full. If you owe taxes and cannot pay the entire amount upfront, it's important to take action as soon as possible to minimize penalties and interest.
Here are some options for getting IRS tax relief:
- Installment Agreement: This is a payment plan that allows you to pay your tax debt in monthly installments over a period of time, up to 72 months. To apply for an installment agreement, you can use the IRS Online Payment Agreement tool or submit Form 9465, Installment Agreement Request.
- Short-Term Payment Plan: If you can pay your tax debt in full within 120 days, you can apply for a short-term payment plan online. There is no setup fee for a short-term payment plan.
- Long-Term Payment Plan: If you need more than 120 days to pay your tax debt, you can apply for a long-term payment plan, also known as an installment agreement. There is a setup fee for a long-term payment plan, which varies depending on whether you apply online or by mail and whether you choose direct debit or another payment method.
- Offer in Compromise: This is a settlement agreement that allows you to settle your tax debt for less than the full amount you owe. To qualify for an offer in compromise, you must demonstrate that you are unable to pay the full amount of your tax debt and that the amount you are offering represents the most the IRS can expect to collect within a reasonable period of time. To apply for an offer in compromise, you must submit Form 656, Offer in Compromise, and Form 433-A (OIC), Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-B (OIC), Collection Information Statement for Businesses.
- Temporary Delay: If you are facing a financial hardship that makes it impossible for you to pay your tax debt, the IRS may temporarily delay collection efforts until your financial situation improves. During this time, your tax debt will continue to accrue penalties and interest, and the IRS may file a tax lien against your property.
- Penalty Abatement: The IRS may reduce or eliminate penalties for taxpayers who have a reasonable cause for not paying their taxes on time or for not filing a tax return. To request penalty abatement, you can call the IRS or submit Form 843, Claim for Refund and Request for Abatement.
It's important to note that interest on your tax debt will continue to accrue until the debt is paid in full, regardless of the payment plan or tax relief initiative you choose. Additionally, while these options can provide temporary relief, they may not be suitable for all taxpayers or all tax situations. It's always advisable to consult with a tax professional or a tax attorney to understand your options and determine the best course of action for your specific situation.
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tax debt forgiveness
Tax debt forgiveness is a broad term that refers to any situation where a taxpayer is relieved from some or all of their tax liability.
The IRS doesn't forgive tax debt in a sense that they just write it off and forget about it, but there are several programs and options available that can help reduce or eliminate your tax debt in certain circumstances.
Let’s face it. When you owe the IRS and can’t pay, it’s tempting to ignore the issue. Usually, this boils down to fear of the unknown.
If you contact the IRS, will it get you in even more trouble?
The reality is, you should only be afraid if you ignore the issue. If you ignore the tax bill you owe, the IRS can eventually force you to pay using several tools – like federal tax liens, levies, and wage garnishments. And that’s on top of penalties and interest that will pile up.
The good news: The IRS offers options for IRS tax relief when you can’t pay the taxes you owe – from simple extensions of time to monthly payment plans – and even programs for people in financial hardship situations.
Get some IRS tax relief help from the experts.
Our tax professionals can help you investigate which payment option or other alternative is best for you and request it from the IRS.
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8 Consequences Of Ignoring Your IRS Tax Bill
1) The IRS may charge you some interest for not filing or paying on time, this would also be additional money owed.
2) Legal action takes place which could result in a court appearance and/or wage garnishment.
3) A tax lien may be placed on an individual's property, which means they can take a car, a house, or anything valuable from you until what you owe in taxes is paid in full.
4) You may face a possible levy, which means that they will take a percentage of your paycheck every month until what you owe has been repaid.
5) The delay in payment can result in penalties that accumulate until what is owed has doubled or more.
6) All past due taxes are applied at a higher tax rate than applies to current periods.
7) It may take some time before they remove your lien because there are restrictions for removing them depending on other factors such as how much unpaid tax debt you have.
8) If you are found to be evading your Federal tax return on purpose and it is taken to court, then the worst-case scenario would be jail time.
Frequently Asked IRS Tax Relief Questions
What Is IRS Tax Relief?
Tax relief is a reduction in the amount of tax that a person or company owes. It can come in the form of a reduction in the amount of tax that is owed, or it can come in the form of an extension of the time period allowed to pay the tax.
There are several forms of tax relief that are available, including:
- Reducing or eliminating taxes on income earned from investments
- Allowing businesses to write off certain expenses against their taxable income
- Reducing or eliminating estate taxes on money and property passed down to heirs after death
- Allowing individuals to delay payments of income taxes until they file their returns
How To Get Tax Relief From The IRS?
There are a few ways to get tax relief from the IRS. You can claim a deduction for certain expenses, you can reduce your taxable income with credits, or you can exclude income from taxation. each method depends on your individual circumstances.
For example, you may be able to deduct certain medical expenses if they exceed 10% of your adjusted gross income. Or, you could receive a credit for paying child care expenses. There are also a number of tax exemptions available, such as the Earned Income Tax Credit or the Child Tax Credit. Be sure to explore all of your options and speak with a qualified tax specialist to find the right solution for you.
What Is The The IRS Tax Relief Program?
The IRS Tax Relief Program is a program that allows individual taxpayers to get relief from certain penalties and interest charges that have been assessed by the IRS.
The program is open to any taxpayer who qualifies, and there are a number of different ways that taxpayers can qualify for relief. Some common reasons why taxpayers might qualify for relief include being unable to pay the tax debt in full, having had a recent life change that has affected their ability to pay the debt, or being currently enrolled in an IRS payment plan.
Eligible people can apply for relief under the Tax Relief Program, it's important to speak with an experienced tax attorney who can help you determine your eligibility and submit an application on your behalf.
Do IRS Tax Relief Companies Work?
Yes, tax relief attorneys work to help people resolve their tax debt with the IRS.
The goal of a tax relief attorney is to negotiate a settlement with the IRS on behalf of the client, which will reduce or eliminate the amount of taxes that are owed. In some cases, an attorney may be able to get the entire balance forgiven. However, each case is unique and depends on the individual's specific circumstances.
If you are struggling with tax liabilities, it is important to seek professional help as soon as possible. An experienced tax relief attorney can review your situation and advise you on the best course of action for resolving your debt and avoiding any penalties or interest charges.
How Do Tax Debt Relief Companies Work?
Tax debt relief companies work by negotiating with the IRS on your behalf to get your tax debt reduced or eliminated. They can also help you set up a payment plan or an Offer in Compromise (OIC) if you are unable to pay your full tax bill.
Do I Qualify For Tax Debt Relief?
There is no one-size-fits-all answer to this question, as the qualifications for tax debt relief will vary depending on your specific situation. However, some of the factors that may be taken into account include your income, your assets, and the total amount of debt you owe.
If you are considering applying for tax debt relief, it is important to speak with an experienced attorney who can help you determine whether you meet the qualifications and can provide guidance on the best course of action for your specific situation.
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