subject: Saving Money through IRS Tax Debt Relief [print this page] What the IRS doesn't like to talk about are the many ways you can settle tax debts. For example, you can request an audit reconsideration of a closed audit. It's possible to reopen an audit which created a tax debt you can't afford to pay when certain situations existed at the time of the audit. One of those situations is you did not attend the audit because you didn't know about it.
Qualifying for IRS Settlement - Not everyone will qualify to settle their IRS tax debt. The IRS is going to weigh your finances very carefully. They need to know your gross income amount. Next they will look at the amount of money in your bank account, and the value of every single asset you own. If any of these amounts are the same or exceed your total IRS tax debt, you will not be approved for an IRS settlement.
If you owe taxes, it is best to quickly determine the best method for settling and settle as ASAP. Everyone has heard the horror stories of people losing homes, losing assets, getting wages garnished etc. The IRS has more powerful collection mechanisms than any other collection agency in the United States. The good news is that they will give you lots of notice and opportunities to settle and they are willing to work with you. Not taking action is the worst thing you can do, the sooner action is taken the better.
As you can appreciate, it definitely is viable to seek IRS debt relief when you understand your options. Understand that it's always important to file your taxes, even when you discover you cannot pay them than it will be not to file. If you happen to follow the above advice, then IRS debt relief is within your grasp.
Penalty abatement provides you the opportunity to appeal your case to the IRS. The IRS furnishes penalties for almost everything these days including filing late tax returns, paying late, etc. There are many types of penalties existing which are illogical. The preliminary intent of these penalties was to teach taxpayers who didn't follow the law a lesson and to keep amenable citizens from altercating. Withal, penalties exist at present because they've transformed a big profit generator for the government. A lot of citizens could compensate their tax debts if it weren't for penalties that increase their tax bill in clipped time. There is relief for a lot of taxpayers from IRS penalties, however. Taxpayers who have reasonable cause are allowed by law to file for Penalty Abatement.
The technique that many individuals who must pay back IRS back taxes wish to think about is an Offer in Compromise. By having an offer in compromise you wind up having to pay much less towards the IRS than what you really must pay back. Those people who wish to negotiate their own debt have to consider this method. The only real problem would be that the IRS doesn't take offers from everyone. Rather, offers in compromise are merely recognized approximately ten to fifteen percent of the time. A tax expert will assist you to determine if you be eligible for this approach.
The positive thing regarding this alternative is that you simply will pay your tax dues at a significantly scaled-down sum that you could find the money for every month. An additional method is the Currently Not Collectible. Should you be truly inside a horrible turmoil and in several ways not possible to pay for your tax debts, you'll be able to settle just for this alternative.
These tricky formalities are not easy for every body to follow and it is always better to hire a certified tax professional to handle your case at the IRS and achieve your purpose.
There are many third-party agencies that are willing to do the work for you. Once you seek for debt relief, meeting with the IRS from time to time is necessary. If you want to settle your tax dues with IRS quickly, you will need the services such as third parties. These professionals have studied the tax laws for years, and so they have better understanding on the best possible solution that will work for your particular situation.
