subject: Tax Debt Relief And The Options Available [print this page] Many people not only are indebted with credit cards and other comparable debt, but in addition are in debt for taxes. Although these individuals might be open to seeking debt elimination programs they are not so ready to seek tax debt relief. This might have to do with the impression of fear that many imagine the IRS associated with it. However, many tax agencies, including the IRS, are willing to resolve outstanding tax issues when the taxpayer is not in a place to pay their entire tax bill.
One only has to bear in mind that the IRS has a system in place that can establish the taxpayers ability to pay because they receive information on your income through W-2's, 1099's and other means. So they better than anybody knows that your income has decreasd or stopped completely. Therefore, when you look for tax debt relief the IRS knows before hand that you are in dire straights.
These are some common tax debt relief programs that you can take benefit of:
Installment agreement - This is a straightforward repayment plan that you and the IRS consent too. This is a great plan if you have the financial capital and your tax liability is not that high
Partial payment installment agreement - This entails making a monthly payment to the IRS for a definite period of time It is different than a straightforward installment plan in that with this plan you pay to a specified date that even though your whole tax debt is not paid off. This is available when the IRS does not believe you are able to pay the entire amount.
Penalty abatement - The IRS will waive and forgive penalties and their compounding as a result of not paying if you can show a reasonable cause for doing so. Reasonable cause includes, death, serious illness, injury, and situations out your control or simple things like lack of funds due to unemployment.
Innocent espouse - If you are able to show that your tax liability came from your spouse or ex-spouse whithout your knowledge, you can get tax debt lowered or even removed. If you filed a joint return you must establish that your were not aware of the tax liability at time of signing
Just as with any other debt there are tax debt relief alternatives existing to you and you should take full advantage of them. Expert assistance is suggested since the tax code and laws are volumes and complex You do not want to procrastinate because that will result in a higher tax bill and the IRS may take harsher action against you
