Some of the latest in phone scams are the claims that you owe thousands of dollars in back taxes. Unfortunately, for some people, owing the IRS is a real problem. Before you open your web browser and search for tax relief services near me, there are some things to know about tax relief services. Taxpayers who are unable to pay a lump sum on their amount owed are the ones who benefit most from relief services. There are four primary programs.
Payment Plans
For businesses or individuals who cannot afford their tax debt immediately, a payment is a doable solution if they can afford the monthly payment. This is convenient for taxpayers, as they can slowly lower their debt at a pace they can manage, while the IRS will be able to get all the money they are owed.
Debt Reduction
If you aren’t able to pay for your entire debt or even make the monthly payments without severe financial hardship, debt reduction may be a solution. Although dependent entirely upon the IRS, it may be possible to have debt canceled entirely or be reduced to a smaller amount. This usually occurs when the taxpayer demonstrates convincing wiliness to cooperate.
Penalty Relief
With this relief option, the IRS enacts an administrative procedure to forgive penalties and fees that may have been charged to taxpayers who didn’t follow the IRS filing rules. This may occur if you have attempted to meet your obligation but financial hardships have gotten in the way.
Tax Representation
Having tax representation is a citizen’s right according to the Taxpayer Bill of Rights. If you feel the IRS has miscalculated your tax assessment or you are facing an audit, you have the freedom to hire a tax representative help you negotiate. However, there are credentials that potential representation would have to need in order to be of assistance.
Knowing about these programs can give you hope if you are facing an IRS tax collection. Speak with your tax preparer or an accountant if you need more information.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin