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Tax Relief Programs | Get Rid Of Tax Debt | Florida

Updated: Nov 11


The tax professionals at Flat Fee Tax Relief list four tax relief options that could help you get your tax debt under control.

Finding the correct IRS tax relief program is complicated. If you get behind on paying the IRS, things can get onerous and complicated very quickly. If you owe back taxes, we provide four tax relief options that could help you find some tax relief. 1. IRS payment plans (Installment Agreement) If you need more time to pay your tax bill, the IRS has a tax relief program in the form of a payment plan. The IRS offers two types of installment plans (learn more about IRS payment plans here). 1. Short-term payment plan (120 days or less)

a. $0 to $100,000 in combined tax, penalties and interest apply online or by phone, mail or in-person.

b. Pay by automatic withdrawals from your checking account or by check, money order or debit/credit card. 2. Long-term payment plan (120 days or more) - $50,000 in combined tax, penalties and interest.

a. If you pay through automatic withdrawals: $31 to apply online; $107 to apply by phone, mail or in-person. (Fees waived for low-income applicants.)

b. If you pay with another method: $149 to apply online; $225 to apply by phone, mail or in-person. (Fees reduced to $43 for low-income applicants, and may be reimbursed in certain circumstances.)

There are a few items to be aware of before agreeing to tax relief via an IRS payment plan:

a. A payment plan doesn’t get rid of interest and penalties for late payment. Those accrue until your balance is zero.

b. If you owe more than $25,000, you have to make your payments via automatic withdrawals from a bank account. If you don't, the IRS will file a federal tax lien and won't tell you about it.

c. If you make your payments with a debit or credit card, you'll have to pay a processing fee (the charge for debit cards runs about $2-$4 per payment; the charge for credit cards is about 2% of the payment).

d. "Low-income applicant" generally means your adjusted gross income is at or below 250% of the federal poverty level. You can see if you qualify on IRS Form 13844.

2. Offer in Compromise

A wonderful tax relief program is what’s called an Offer in Compromise (#OfferinCompromise). This tax relief program allows you to settle your tax bill with the IRS for dramatically less than you owe. According to the IRS, it may be a real tax relief option for you if it can be proven that collection of the tax debt is very much in doubt. Also, if it can be shown that collection of the tax bill creates a financial hardship.

The IRS wants to accomplish two (2) goals. One is to collect money (even if it's as little as $100. Another goal is to close a file. The IRS has an endless supply of tax debts to collect. It is imperative that the IRS close a file and move on the next one.

It is harder to get the IRS to sign off on an Offer in Compromise (#IRSsettlement) than on a payment plan. An Installment Agreement can be entered into in a matter of minutes. An Offer in Compromise usually takes 6 to 10 months to complete. There are parameters that need to be met. The IRS accepts fewer than half the requests. Per IRS statistics the IRS has been accepting approximately 42% of the 80,000 Offer in Compromise submissions the agency receives yearly. A large amount of the OIC rejections are due to taxpayers submitting their own settlement offers (DIY). APPLYING FOR AN OFFER IN COMPROMISE

The materials and instructions for submitting an Offer in Compromise are in IRS Form 656-B. Here are a few things to know:

1. There’s a $205 fee, and it's nonrefundable (low-income taxpayers can get a waiver).

2. You’ll also need to make the first monthly installment payment if paying the settlement over time. It’s nonrefundable as well.

3. You have to be current on all your tax returns. If you haven’t filed a tax return in a while, you may not qualify. The IRS usually requires the last six (6) tax returns to be filed. 

4. The IRS can file or keep tax liens in place until it accepts your offer and you’ve fulfilled your end of the deal.

5. You don’t qualify if you are in an open bankruptcy proceeding.

6. You can hire a qualified tax professional to help you do the paperwork, but it’s not required.

Once you file your application, the IRS suspends collection activities.


Your initial payment has to be either 20% of what you’re offering to pay (if you're paying in five or fewer installments) or your first monthly installment (if you're paying in six or more monthly installments).

Be aware that some of the information about your offer in compromise could be made public. The IRS’ public inspection files on offers in compromise include the taxpayer's name, city, state, ZIP code, liability amount and offer terms.

Any federal tax liens the IRS has filed against you don't go away until you’ve fulfilled your end of the deal.

3. Currently Not Collectible Status - IRS Hardship

If you can't pay your taxes and your living expenses, within reason, you can ask the IRS to put your account in what’s called "Currently Not Collectible" status. You need to request this delay in collection, and the IRS may ask you to complete a Collection Information Statement to prove that your finances are as bad as you say they are. You'll need to supply information about your monthly income and expenses on that form.

Our tax professionals use the Currently not Collectible option when our client owes less than $10,000 (the minimum for an Offer in Compromise), has an asset such a house or we can use it to stall the IRS and run-out the Statute of Limitations.

Here are some things to know about IRS Hardship:

a. It's temporary. Currently not Collectible statuse will usually go 12 to 18 months before the agency reviews it.

b. Being deemed "Currently Not Collectible" doesn't make your tax debt go away. It does mean you do not have to pay.

c. The IRS can still file a tax lien against you.

4. Should I Hire a Tax Relief Company? The IRS may or may not tell you what tax relief programs are available. They certainly will not tell you how to be successful at settling your tax debt. What the agency will do is tell you what forms are needed. Then you are on your own.

The tax professionals at Flat Fee Tax Relief has provided valuable IRS tax debt help at a very affordable fee for more than a decade. Our Tax Attorneys have a 96% Offer in Compromise rate of success.

Our tax pros are strategically located in Clearwater, Florida, and San Diego, California which allows us to be available to both our clients and the IRS from 8 A.M. Eastern to 6 P.M. Pacific time. That is a huge advantage when stopping an IRS levy. Our consultations are free and will take 20 to 30 minutes of your time.



IRS Tax Relief Programs

 Flat Fee Tax Relief - 1-866-747-7435

Clearwater, FL - San Diego, CA

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Very Affordable Tax Debt Help

IRS Tax Relief Programs