IRS Tax Debt Relief

Tax Relief: Even the IRS realizes there are some circumstances where an individual shouldn’t be responsible for some or all taxes they owe. Times are tough, people are falling behind and if you are one of them… you are not alone. These are some of the methods of tax relief available if you have a large IRS tax debt and you can’t qualify for the IRS reasonable payment plan.

Penalty abatement
This is a common method for settling taxes for less than is owed, a way people that gets our nations IRS to remove penalties and interest that could have been added on your tax debt (for various reasons). In fact, almost 1/3 of the penalties and interest assessed by our nations IRS are then removed later.

Partial payment installment agreement
A lot like what known as a “normal installment agreement”, because you pay IRS taxes that you owe over a course of time. But it’s different because still are paying much less than what you owe because of statue of collection expires at the end of each tax period, part of your IRS tax debt goes away which you are then now not liable for.

Offer in Compromise
When you hear about people talking about settling their IRS tax debt for less then they owe alot of times its with Offer in Compromise (or OIC). Please keep in mind, a offer-in-compromise isn’t for everybody. qualified people or businesses with a unpaid IRS tax debt helping to negotiate a favorable settlement that ends up being less than what the total owed would have been. This is viewed upon as clearing what the IRS views as a bad debt. The objective of the Offer in Compromise or OIC is to reach a compromise with the IRS that it’s for the best for both you as the taxpayer and our government or IRS.

Innocent spouse tax relief
The Innocent Spouse program is a very common type of tax relief that is meant to help relieve you of your IRS tax debts, penalties and interest encored from a joint IRS tax return filing either with your current spouse or ex-partner for the specific year they’re are in need of tax relief. When people put in for a joint IRS tax return, both spouses are taking on equal responsibility for all the IRS tax debt, interest and penalties included for that tax period. The IRS has created the innocent spouse tax relief program because there are many times when it is not right to hold an innocent spouse responsible for any tax debt encored while filing the joint IRS tax forms.

IRS tax bankruptcy
I used to be that with Chapter 7 provided taxpayers with full discharge of tax debts and with chapter 13 allowed for a payment plan to repay some debts, and in some cases discharged the rest. Under the new harsher bankruptcy laws, both chapter 7 and 13 bankruptcies are now treated the same when it comes to IRS tax debt. Not all tax debts are eligible of being discharged in bankruptcy.  Bankruptcy should always be left as a last resort to a IRS tax debt problem.

Tax Relief Consultation
We know how difficult and confusing this whole process/ordeal can be especially in this economy so if you still have questions please don’t hesitate to ask one of our tax professionals for help today. We want to help.