Sometimes we simply cannot avoid the consequences of ignorance or procrastination when it comes to our taxes. People who find themselves in this predicament may not get the full benefits of tax relief. However, there are ways of managing the situation so that it is not overwhelming. All about that.
Discharge - File for bankruptcy
This is normally the last resort that would give relief to a taxpayer who is unable to reduce liability through any other way. Tax relief is granted when certain kinds of income taxes are dischargeable in bankruptcy.
Payment Plans/Installment Agreements
One may pay all the debt owed in full or structure a log-term payment plan. If one can make an immediate payment, the accumulation of interest and fees are avoided, as well as avoiding any future enforcement or harassment from the Internal Revenue Service.
Adjust the debt - Abatement
This is a tax relief method in which a tax, tax penalty or interest on tax is reduced or changed. Usually it refers to removing an assessed tax liability or if it is adjustment, the tax liability that was assessed is changed.
Expiration - Allow Statute of Limitations to expire
The Internal Revenue Service has a limited number of years to collect delinquent taxes. The date on which the tax is assessed is the date that begins the statutory period, the period during which the debt is to be collected. If the last day of collection in this period passes, there is a possibility that a person in debt is free and clear of the IRS obligation. This statute can be changed or extended in many circumstances, so one needs to consult with a tax professional to discuss the possibilities.
Tax Relief - Compromising With the IRS
If you have received a tax bill or have past due taxes that you've had problems paying, an Offer in Compromise - otherwise known as an OIC - may be a viable option for tax relief. Although the IRS is particular about why you're asking for an OIC, there are three legitimate reasons to file this request for tax relief.
Tax Relief: Your Job Can Raise Your Refund
Un-reimbursed Employee Deductions - The taxes taken out of your paycheck can seem like a huge amount. However, saving your receipts may help you with tax relief, in the form of itemized deductions.
Navigating Tax Relief through an Offer in Compromise
An Offer in Compromise (OIC) is a powerful tool for taxpayers seeking relief from overwhelming tax debts. This agreement with the Internal Revenue Service (IRS) allows individuals to settle their tax liabilities for less than the full amount owed, potentially unlocking significant financial savings. Understanding the intricacies of an OIC and determining eligibility can be the key to reducing tax burdens and achieving fiscal stability.
