3 Ways to Avail IRS Tax Debt Relief

Yes, taxes may feel like a burden that you cannot get rid of, but you have to pay them by hook or by crook or face strict collection actions by the IRS. To ease the burden of struggling taxpayers, the IRS offers debt forgiveness programs with certain conditions. These IRS debt relief programs do not completely remove your tax obligations from your account but help reduce your burden. In a financial strain, even the reduction of the tax debt can do a lot of wonders. Here are the 3 ways you can avail IRS tax debt relief and reduce your tax burden. 

1. Offer in Compromise 

When you offer to pay a part of the taxes you owe and the IRS agrees, it is called an Offer in Compromise. Keep in mind, an offer in compromise is not available for everyone. It is only for those in financial hardship. To check eligibility for individual taxpayers, the IRS provides a pre-qualifier tool. The basic eligibility criteria entail requirements like you:

• have filed all your previous returns 

• have no prior history of bankruptcy 

• have a valid extension for the due year

The IRS will check your ability to pay, income, expenses, and asset value and then approve a request for Offer in Compromise. 

2. Installment Agreements 

A taxpayer, who is unable to pay the taxes in lump sum by the deadline, can pay the tax debt in installments. IRS form 9465 is used for requesting an installment agreement, but to be eligible for installments:

• You should have filed all the previous returns

• You have to prove that you are unable to pay the taxes within the deadline by showing the savings and brokerage accounts.

• You have to prove that you are unable to take loans and other refinancing options.

• You lack the equity to pay off your tax debts.

The IRS offers long and short term payment plans and various mediums to pay the due depending on the tax bill. 

3. Currently Not Collectible Status

There are times when a taxpayer is not able to pay taxes due to financial instability and other reasons. In such situations, the taxpayers can apply for the ‘Currently not collectible status’. Under this request, the IRS extends the time limit of the tax repayment by placing the taxpayer’s account under ‘currently not collectible’ status. The IRS agrees to this debt relief request only when paying taxes is causing financial hardship to the taxpayer and doing so would make them unable to fulfill even basic needs. The taxpayers need to prove their likely financial strain by providing relevant documentary proof. To check whether you are eligible for this IRS debt relief option and to draw up a convincing case, consult a leading tax attorney. 

Summary 

Paying taxes is not only a civic responsibility but also a legal requirement. If you are experiencing difficulty in meeting your tax obligations, you must consider IRS debt relief options. Dallas residents looking to check their eligibility or seeking legal advice and help on Offer in compromise, penalty abatement, and any other debt relief options, can consult a leading tax attorney in Dallas. An experienced debt attorney will help in solving your tax debt problems by advising you on the best ways to get your tax debt burden off your head.

What Are the Benefits of An IRS Installment Agreement?

If you have a tax debt, an IRS installment agreement can help you pay it off over an extended time frame. An installment agreement with the IRS offers several benefits, including accelerated payment of taxes owed monthly, and reduced interest rates and penalties. Such an arrangement can help you get tax debt under control and save money in the process. In this blog, we will discuss the basics of an installment agreement and its benefits.

The Basics of an IRS Installment Agreement

There are a lot of taxpayers with large tax bills, which they can't afford to pay all at once. With every delay in the payment of due taxes, the penalty and the interests accumulate eventually creating a mounting tax debt. The IRS offers several debt relief options for taxpayers to pay their taxes over time, including an IRS installment agreement.

In this arrangement, you agree with the IRS to pay the entire due tax bill over an extended time, usually 12 months or longer. You can pay the whole tax bill in one lump sum at the end of the agreement, or pay the IRS monthly, quarterly, or annually.

There are several advantages to choosing an IRS installment agreement over paying the due taxes all at once:

1. You can use an installment agreement if you have a large tax bill and can't afford to pay it all at once.

2. You can spread the cost of your tax bill over a more extended period, reducing your immediate expenditures on taxes and having enough money to pay your entire tax bill over months.

3. You can save on penalties and interests on late filing and payment

4. It will reduce your stress levels if you know that you have more time for paying your due tax bill consistently.

Conclusion

As you can see, IRS installment agreements provide many benefits, such as reduced tax liability, simplified filing, and more. The only thing to remember with payment agreements is to ensure that you keep all the documents necessary to prove that you've paid previous taxes in full, including copies of all your payments and correspondence with the IRS. If you are from Dallas and are interested in applying for an IRS installment agreement in Dallas, this IRS debt relief option is the perfect armor to save you from your future troubles. There are dedicated IRS helplines for tax help in Dallas, in case you need one. The best way to enter into a payment agreement with the IRS is to hire a reputable Dallas IRS lawyer. They will help you learn more about the options within the agreement and determine whether it's the best alternative for you. An exceptionally equipped Dallas IRS lawyer will also relieve you from going through the pain of all the paperwork and twisted legal terms.  Consult with a leading IRS lawyer in Dallas to increase your chances of acceptance into an IRS tax installment agreement today.

3 IRS Debt Relief Plans You Should Know

Having tax debt in the United States is problematic. The IRS leaves no stone unturned in collecting taxes, which can be fearsome, however, this rigidity is just one side of the story, the IRS also provides debt relief provisions (primarily under the Fresh Start Initiative/FSI) to encourage maximum tax deposits. These debt relief plans are approved only after taxpayers meet a stringent set of eligibility criteria, which is why it is advisable to consult a tax attorney in Dallas that can help you get the much-needed concession. But before that, it is crucial to understand the different debt relief plans available. That said, continue reading as we discuss various IRS debt relief plans that you should know.

1. Installment Agreement

An IRS tax installment agreement is a time-based concession that allows taxpayers to pay their dues over a period instead of a lump sum amount. The duration of a payment agreement varies depending on the tax due, it is arguably the most common FSI provision. Requesting an installment agreement requires the taxpayer(s) to comply with the eligibility criteria specified by the IRS, which can be overwhelming to understand. This is where it is beneficial to hire a debt attorney.

2. Offer in Compromise (OIC)

An OIC is a monetary concession, under the FSI, offered by the IRS to the taxpayers allowing them to settle the outstanding amount for less than what is owed. But, don’t be fooled, the IRS does not just let anyone walk off without paying the total amount, the IRS approves requests for OIC only in cases where the taxpayer is in no position to repay the full amount and agrees for a lower monthly payment offer. This requires proof of economic distress and ability to meet other stringent eligibility criteria, requiring an in-depth understanding of the same. This is where a Dallas tax attorney steps in to create a strong application starting from compiling intricate documents to drafting a request for OIC so that your chances of acceptance are more favorable.

3. Currently Non-Collectible Status

The Currently Non-collectible Status is a declaration of stay or hold put on your tax recovery case by the IRS. It is approved in conditions where the IRS judges that you cannot pay your tax dues and living expenses at the same time. This doesn’t affect the purpose of the IRS at all as they have a decade to collect the outstanding amount from the filing date as per the Statute of Limitations and they continue to conduct annual reviews to see whether your situation has changed. Requesting for a non-collectable status involves several intricacies, which is why it is advisable to contact tax attorneys in Dallas Tx to chart the best possible way.

Final Word

Seeking IRS debt forgiveness is all about presenting your case with the right documents at the earliest, however, given the intricacies involved, it is beneficial to hire a tax attorney who has knowledge of all debt relief plans including IRS penalty abatement. A good IRS attorney will not only suggest the best possible plan for you but also help formulate the application request for simplifying the tax repaying process.

3 IRS Tax Problems You Should be Thorough With

With an upfront ‘no nonsense policy’, the IRS has no room for leniency in taxation. While the solution is simple: Pay your taxes timely, there are various reasons for being behind taxes and the consequences can be hefty. From issuing notices to seizing properties, the IRS has all the authority to recover the due amount by all means. This ultimately leads to huge IRS tax problems requiring prompt action and strategic planning. If you have outstanding taxes, then this blog is for you. Read along as we discuss three IRS tax problems you should know about and take appropriate measures to avoid any counter-actions by the IRS.

1. IRS Levy

Issuing a levy by the IRS is not at all good news for you, it simply means that the IRS had previously issued a tax lien and there has been no significant progress since then. While a lien secures the IRS’s rights in your assets, the levy allows them to seize your property and withdraw money from your bank account to recover the amount. Such IRS tax problems are where a tax debt lawyer can be your day saver by helping you deal with the IRS. 

2. Audit Letter by the IRS

The IRS issues an audit letter for various reasons ranging from a basic confirmation or informing about any modifications in your tax returns to a warning about the due taxes. When you receive an audit letter from the IRS, don’t panic and simply analyze the objective of the letter. If it is concerning outstanding balances, act quickly and do the following:

• Respond to the letter timely to avoid additional penalties

• Clear dues if possible

• Provide correct information for verification purposes

Dealing with an audit letter can be complex, which is why you should consult a lawyer for such tax problems.

3. Issues in Joint Tax Returns

The IRS allows married couples to file a joint tax return and offer ‘Earned Income Tax Credits’, however, any complications such as missing the deadlines by any of the spouses or non-compliance with the terms can lead you to trouble. When it comes to joint tax returns, both spouses are held accountable for any liability, requiring people to opt for Innocent Spouse Tax Relief. If you find yourself in a similar situation, reach out to an IRS law attorney to request Innocent Spouse Tax Relief.

Consult a Local Lawyer

Dealing with the IRS requires a quick and right approach. Any miscalculation can result in loss of assets, high penalties and ineligibility for the ‘Fresh Start Initiative’. This is why you should consult a local lawyer for your tax problems. For instance, if you are a resident of Dallas, consult a Dallas tax law firm that offers expert IRS problem resolution for tax levies. They will help with the forms and procedure so that you won’t have to run to the IRS locations in Dallas, Texas or anywhere yourself. Kick start your search for tax help in Dallas, by searching ‘tax attorneys in Dallas Tx’ or ‘Dallas tax attorney’ and consult a leading Dallas tax lawyer with years of experience.