subject: Can a Recent Income Loss Be Used As Basis For Asking For Tax Debt Relief? [print this page] Let's say a taxpayer has not been able to file his income tax return of last's two years taxable period. Then he lost his job, and IRS just started demanding for back taxes to be paid or face possible imprisonment. Harsh, but this situation may just be a possible. Can this taxpayer avail tax debt relief?
Yes, he can! No pun intended here, but he really can avail of this program. In fact, this is just the very reason why tax debt relief is offered extensively than before. Tax debt relief was expanded, to help taxpayers get alleviation from financial burdens pursuant to recession.
Although non-filing of income tax returns is an offense. However, if withholding taxes were collected, it is a matter of reconciling documents to prove such taxes was paid. Still, IRS needs to get the returns to verify that the right amount indeed was remitted. If it's found to be insufficient, then back taxes need to be paid thereafter.
The timing is just right for this taxpayer, because through tax debt relief he may escape from being penalized. What he can start doing is prepare proofs of withholding tax payments. This is like two years worth of tax return preparations, but it must be done. Then hire a tax lawyer to represent him for legal proceedings with IRS.
When the back taxes' amount is very significant, taxpayer should not deal with this alone. This time it would cost him his freedom not only money, if he does ala Rambo. So it's better to trust a tax relief expert to do the dirty job of availing a tax debt relief. Bailing-out himself from this problem alone will never help.
While an insignificant amount may also need tax relief experts but the process will not be bloody like when its significant. Perhaps a settlement of not paying back taxes at all might be granted if the financial situation is really dark. What is important is for the taxpayer is to take action right away, while tax debt relief is still available. Who knows in a year or two, when the recession is over, this will just be lifted?
Can a Recent Income Loss Be Used As Basis For Asking For Tax Debt Relief?
