You can gain IRS tax relief programs through four main ways. Most of the programs will allow you to pay a portion of what you owe. That means you cannot escape your obligation in paying taxes. However, these programs will help in minimizing your expenses, and thereby, avoiding bankruptcy. But if you file for bankruptcy, your IRS debts will be considered as the senior to your other debts. If tax debt relief is what you need then the IRS has programs that will help you to relieve the debt avoid going through the legal process of bankruptcy.
What are your options?
To assist you in paying your debt, IRS can offer you an installment agreement. It’s not unique to this government agency, though. Several lenders are willing to work with their debtors to recover their funds quicker. If you have simply need more time to pay and are not necessarily looking for a reduction, this is the clear choice for you.
Offer in Compromise(OIC)
This option allows you to pay less than you actually owe. In this case, you will make a lump sum payment. Or, you can opt for an Installment agreement on the new balance. However, before you can opt for it, the government will first consider your income, fixed expenses, age, and assets.
Penalty abatement is considered as tax relief. In this option you can reduce your total liability by reducing or removing the penalties. Compared to the three other options mentioned above, the penalty abatement is somehow the most difficult to obtain because it is only given to people who are in a compromised situation because of an external factor. The most common type of tax abatement is the emergency relief. One great example is if you were a victim of a natural disaster that resulted in you losing your assets. The only taxpayers who can qualify for this option are those who were not responsible for their financial situation.
If you are not sure what tax relief programs to consider, you should consult a tax attorney to help you figure out the best option based on your specific situation. Please experts at Enterprise Consultants Group a call for a free confidential consultation at 800-950-2237.