Many taxpayers don't realize this but tax debt relief is available to everyone. The IRS has created many ways for taxpayers to resolve tax debts in ways other than paying in full. In order to get tax debt relief it is important that you make the appropriate tax filing for your situation. Even if you qualify for one of the methods available it must be proven to the IRS. If you don't prove it to the IRS and the amount remains unpaid they will continue to add on additional penalties and interest that could have been avoided if the proper filing was made. Below are the steps to follow to get tax debt relief for your unique tax and monetary condition.
Analyze your present financial standing and what you expect your future financial standing to look like. Your current and anticipated future financial situation are the two main factors the IRS looks at when making decisions as to whether or not they will accept a taxpayer into a particular tax relief plan. Every tax relief plan that the IRS has available was created for individuals in a particular financial situation. So when making the decision for the best tax relief methodology to choose you must pick the method that was created to help people with a financial situation similar to yours.
If you currently cannot pay the taxes in their entirety but you still have some security to your cash flow and you still have some money left over after each months basic expenses required to live, then you should apply for an installment agreement. An installment agreement will allow you pay your tax liability over 36-60 months depending on what type of installment agreement you qualify for. When entered into an installment agreement there will be interest charged on the outstanding balance.
If you currently cannot pay the taxes owed in full but still have some stability to your income but you cannot make the minimum required payments with a normal installment agreement, but you still have some money to make some payments then you may be able to qualify for a part pay installment agreement. With a part pay installment agreement you pay back the taxes owed in monthly increments but at a lesser amount than what is required when using the traditional installment agreement. At times a taxpayers that qualify for this type of agreement can pay less than the amount owed because they the IRS statute of limitations runs out before they paid back the taxes in their entirety.
If you cannot pay the taxes in full right now and you don't expect to ever have enough funds to pay off the taxes owed then you may qualify for an offer in compromise. With an offer in compromise you can negotiate the amount of taxes owed. In order to have your offer accepted you must provide the IRS detailed financial statements about your current financial situation and also give them a good understanding of your expect future financial situation. If they determine that you don't have the cash flow to ever pay the entire amount owed they may allow you to settle through and offer in compromise. The amount you settle for can be paid in full or paid back over time in a comparable way to an IRS installment agreement. The IRS is very strict who the let settle in this manner. If you are considering this it is a good idea to hire a tax relief company to help.
If you cannot pay the taxes in full right now, you don't have enough monetary funds to make any payments towards the taxes owed and you are unsure what your anticipated future situation will look like then you may be a good candidate to get declared uncollectible. When declared uncollectible the IRS puts a temporary hold on collection actions and they will allow you some time before they come back to analyze your financial situation to see if it has improved enough for them to collect from you. Sometimes if a taxpayers situation doesn't improve enough then the statute of limitations may expire on the taxes owed and they will no longer have to pay for the taxes owed.
No matter what your financial situation there are tax relief programs available to everyone. Many people are scared of the IRS when they can't pay their taxes but the worst thing you can do is ignore your problem and not work with the IRS. If you are still hesitant to work with the IRS it is always a good option to consider a tax relief company. A tax relief company will analyze your monetary condition and make a determination as to what tax relief method would best for you and they will prepare all the required paper work and handle all IRS dealings on your behalf.
Find more information and help with various IRS debt relief arrangements. Our authors have put together detailed information on all the different forms of tax filings available to individuals having tax problems.