IRS Tax Relief Basics

Sometimes, through no fault of their own, people find themselves in debt to the IRS. If you owe money to the IRS, there a lot of choices and options that are available to help you make the payments. Don’t panic, thinking that you can’t handle this dilemma, you do have options.

The financial statement that is to be completed in full. You should be aware that the IRS is not overly concerned with your personal situation. Their job is to look this statement over very carefully to see how it best can help the government recoup their money in the way that works best for them.

The IRS will offer these tax relief options:

Hardship – this means that you are essentially incapable of paying the money back because of your current financial situation. These types of cases normally give you a three year time frame to not make any payments.

Pay Arrangement Agreements – Cases can often be resolved with payment arrangements, based on the amount you owe and the time frame in which you can pay it off. These amounts are sometimes based on the regions in which you live.

Offers – In some cases, the IRS will take an offer for less than the original amount, but only in cases where the either believe that the amount owed might possibly be questionable and you may not be entirely responsible (liable) for the entire amount or that there is doubt they’d ever be able to actually collect the money by going after you for it. For instance, if you own very little and there is no way to place liens are get cash, they may agree to an offer in hopes of collecting anything at all. IRS examiners are not infallible and they sometimes make mistakes in determining your liability or misinterpret information. This can be favorable for you when it comes to making offers.

Exception circumstances, such as bankruptcy. If your tax liability was assessed over 3 years ago and/or in the IRS computer system for more than 240 days and you file Chapter 7 bankruptcy, your debt can be discharged in your bankruptcy.

In order to take care of this matter in the best way possible, it is truly in your best interest to hire someone to handle this negotiation on your behalf. Only if your case is a very simple one, would it be recommended to handle contacting the IRS yourself.

Companies exist with handling the paperwork by using power of attorney on your behalf. These companies are generally operated by those who have worked for the IRS in the past and are familiar with all the ins and outs of the process. It is very much in your best interest to let them handle things for you.

Remember – you still have time to do your taxes online. Read our 10 Turbo Tax Discounts for savings!

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