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Tax Debt Help | IRS Tax Relief | Florida

Updated: Aug 4


Coast to Coast - IRS Help

Tax Debt Help - IRS Tax Relief - Know the Basics

Tax Debt Help - IRS Tax Relief, just like the options imply, comprises of any incentive or tax settlement program that is aimed at reducing the amount of tax debt that an individual pays. 

In most cases, tax relief (#taxdebthelp) is intended to help relieve financial strain because of a particular event or occurrence. Why Would the IRS Offer Relief Programs? 

The IRS always has two goals regarding the collection of a tax debt. Of course, the first and most obvious would be to collect money. The amount collected isn't always the most important factor. The second goal is to close a file. The IRS always needs to close files as there is a never ending case load. Every year there are millions of new tax debt files needing resolution. The IRS can be tough debt collectors. Their enforcement tools are enormous. With that written, would it be surprising to find out that the IRS does forgive tax debt? Although this may be a bit of a puzzle to you, the IRS does have a very logical reason for doing this? Although the IRS receives a share of the national budget to carry out their collection activities, they still do not have sufficient resources. The IRS has a need to close a collection file.

Enforcing the IRS laws by collecting the required revenue and performing audits is really not child’s play. 

In addition, the IRS has a time span of 3 years to examine your tax liability after you have filed a tax return. And this is really not sufficient time for IRS agents that already have so much on their hands.  

Therefore, the IRS prefers to channel most of its resources into hounding "the big fish." Wealthy taxpayers who try to evade their tax debts are the main enforcement targets. In order to give them more time to focus on this, the agency relies on their Automated Collection System (ACS). What is ACS? It's the IRS computer. It matches data such as names and Social Security numbers with income tax returns.

The IRS tax relief programs work in two ways, they either reduce the amount of tax debt owed or work on a payment plan that allows debtors more time to pay up or a combination of both.  

Filing for an tax settlement Offer in Compromise is a very complicated process and usually requires knowledge of the tax code as well as impeccable financial reports. And while you can do this on your own, most people enlist the services of an experienced top-notch tax relief company to take care of it. 

For the past several years, the IRS has been approving approximately 42% of all Offer in Compromise submissions. Every year the agency will receive approximately 80,000 requests to settle their tax bill. The number one reason for IRS rejection is taxpayers attempting to "Do It Yourself (DIY).

What Fresh Start Programs Are Available?

1. Offer in Compromise

An Offer in Compromise (#OfferinCompromise) is a settlement agreement made with the IRS to allow you to pay less than your actual tax bill. Basically, the IRS deducts a particular amount from your tax bill and then you pay what’s left of it. 

According to the IRS, an offer in compromise “may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.” However, for the IRS to accept your application for this scheme, they consider factors such as: 

a. Your income

b. Your allowable expenses

c. Your assets 

d. Ability to pay

e. Statute of limitations 

Before applying, it is essential to confirm whether or not you are qualified and eligible to settle with the IRS. This can be found on the IRS Offer in Compromise page. 

You can call the tax professionals at Flat Fee Tax Relief to find out if a tax settlement Offer in Compromise is something you should seriously consider. our consultation will take 20 to 30 minutes of your time. 2. IRS Repayment Plan

The IRS may also allow you to reduce your full sum into smaller amounts that you can pay back periodically. In order to qualify for the long-term payment plan (paying over 120 days or longer), your debt has to be below $50,000 in taxes, interests, and penalties all combined. 

For the short-term payment plan (paying 120 days or less), your tax bill can be up to $100,000. While these payment plans may be a saving grace if you don’t have sufficient funds to pay up your tax bill completely, they also attract a cost. 

Going by the plan you decide on, you may need to pay a setup fee of up to $149 in addition to internet and penalties until you clear up your debt.  3. Penalty Abatement

IRs penalty relief is called a Penalty Abatement. The IRS can cancel and waive penalties that you’ve been charged on your tax bill when you tick certain boxes. A taxpayer must have what the IRS calls a "reasonable cause." A reasonable cause can be many things. The taxpayer writes a one page "reasonable cause" letter stating the problem that caused the tax bill. You get only one chance so it better be done right the first time.

It is almost like a form of reward for situations like paying or arranging payment for any taxes owed or not having any penalties for the previous three tax years. If you qualify, you would still owe a tax debt but with the penalties. 

The noteworthy difference is that your total ax bill would be lower when the penalties are deducted from the present balance. 

The Bottom Line

A tax debt is one obligation that paralyzes a whole lot of Americans. The fact remains that getting out of it is not exactly easy.  However, real tax relief serves to make the burden more bearable and provides motivation to clear it all up.  This article is written by the tax pros at Flat Fee Tax Relief who have been providing valuable IRS tax relief at a very affordable fee for more than a decade.

Our teams are strategically located in Clearwater, Florida, and San Diego, California which allows our clients and the IRS to contact our Tax Attorneys from 8 A.M. Eastern to 6 P.M. Pacific time. The extended times come in handy when stopping an IRS levy in one day. Call today for your free no obligation consultation.



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