Ways to get tax debt relief
62Tax debt relief is usually required for those who have failed to file their tax returned. They have back taxes pending and are now pursued by the Internal Revenue Services (IRS). Most delinquent taxpayers become the target of IRS investigations due to non payment of taxes. Apart from refusal of payment, there are some other reasons which cause these investigations. Unpaid taxes can be a result of misunderstandings of tax laws, not enough money to pay taxes, emergency situation in family etc. But regardless of the reason, the taxes have to be paid. More delay will result in more taxes in the form for interest.
For people who cannot afford of pay taxes, tax debt relief can be useful even though it is not so each to get. The first question which comes to a person owing taxes is whether he should take care of the situation himself or he needs professional help. No situation which involves IRS is simple. Still it is advisable to try to get tax debt relief yourself if your debt is less than $10,000. If the debt is more than that, it is strongly suggested to take help from a tax debt relief professional or agency.
Tax relief comes in various ways. The suitable way for you would depend on a few things like the amount you owe, your current financial situation, the institution to whom you owe and any applicable penalties. There is no single answer for tax relief. Let us look at a few ways how you can get tax debt relief.
1. Payment plans - IRS payment plans can be a great solution if you have a large tax debt. You will probably need a professional to make an arrangement for you to set a payment plan. You can request this by way of Form 9465, Installment Agreement Request. The IRS must agree to your proposed plan as long as you owe less than $10,000 and the plan amounts to a full pay-off within three years. There are different options to set up a payment plan like getting IRS Tax loan, installment agreements and short term payment extensions.
2. Offer in compromise - This can be one of the best ways to get rid of the tax which you owe to IRS. Offer in compromise is a formal agreement between you and IRS in which your current tax debt is reduced to a nominal amount but you agree to pay taxes to the IRS for the next five years. Since it is a formal contract, it needs to be done through a professional tax consultant.
3. Tax penalty abatement - When you don’t pay taxes for a long time, not only the taxes become overdue the penalties and interest amount also keeps on adding up. In tax penalty abatement, you can get the get the penalties reduced or even dismissed. Again you will need help from a professional to get this done.
4. Freeze on wage garnishment - If the taxes are long overdue, there can be a wage garnishment of up to 25% of your salary. If a wage garnishment certificate is issued by the court, your employer will have to garnish this amount from your salary. You can work with your tax consultant who could get a freeze on wage garnishment or get a wage garnishment release.
As you can see, you will need to hire a good tax consultant or professional to get most of the above things done to get tax debt relief. You should do some research before finalizing a tax consultant for yourself since this is a very critical matter. You should research online to find a suitable agency or professional for yourself who can get you tax debt relief.
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Madurai 2 years ago
If I don't have income, I think that this page will not serve purpose.. is it right?