Tax relief translates to something different when it comes to tax troubles. Within a specific context, the term “relief” is expressed as a specific program aimed to assist taxpayers.
These taxpayers may include those who are unable to pay their taxes or who have past-due or delinquent tax bills in handling, settling, or even reducing their tax burden or back taxes.
In this informative blog, we’ll discuss some crucial tax relief options that will ease the burden of debt collection and the payoff for taxpayers.
Options #1 — Installment Plans Or IRS Payment
If you need some extra time to pay your tax debt, see if you are eligible for an IRS payment plan or installment agreement. With a payment plan, you can spread out the repayment of your past-due tax bill over time, along with any accumulated interest and fees.
The IRS provides both long-term and short-term installment options so that you can get tax debt relief without much hassles.
Option #2 — A Compromise Offer
Among the ways to receive tax relief is through an “offer in compromise.” When you do this, you may get the IRS to settle your back taxes for whatever amount you owe. The IRS indicates that if paying your tax debt will put you in financial challenges or if you are unwilling to pay it at all, this may be a solution.
Yet, securing the IRS’s approval for a compromise offer is far more challenging than for a payment plan. Less than half of the requests are approved by the IRS. Even before making a compromise offer, you need to think about other possibilities.
The IRS factors, such as your ability to pay your income and expenses and the value of your assets, contribute to offering you tax relief settlement through an offer in compromise.
Option #3 — Hiring A Tax Relief Firm or Advisor
Companies that provide tax assistance usually claim that they’ll help struggling taxpayers. Some of them can be really beneficial if you’re uncertain of how to proceed or need assistance completing forms.
However, be cautious of offers that seem too good to be true, such as those that guarantee you will receive your money back or have your debt completely forgiven.
Taxpayers who owe money on their taxes attempt to resolve their issues directly with the IRS. If you decide to collaborate with a tax-relief provider, you must keep in mind the following instances;
- The IRS denies most applications for offers in compromise.
- You are in charge of paying all taxes, interest, and penalties owed to the IRS regardless of whether a tax relief company rejects or delays processing your application.
- The tax relief company might ask for an upfront payment from you, which could be a certain amount of the debt taxes you owe.
Final Words
The above-mentioned major options will help you eliminate massive debt taxes that are unbearable to pay. So, be mindful while deciding on the right way to relieve your debt taxes and free yourself from financial burdens, instability, and difficulties.