Income Tax Debt Relief Services
Dealing with unpaid taxes can be a stressful and time-consuming experience, and it can be distressing to receive an IRS notice of deficiency. Income tax debt relief services can help you settle your debt for less; hire tax professionals to navigate the IRS tax relief programs available and ensure you reach the best settlement possible.
What Is The IRS Tax Relief Process?
The IRS tax relief process is the process through which a taxpayer resolves a tax debt issue with the IRS. IRS tax relief solutions may include an installment agreement, Offer in Compromise, and in rare cases, tax debt forgiveness.
In order to qualify for tax debt relief, you must appeal to the IRS. Typically, the tax relief process looks something like this:
- Step 1: Identifying the issue
- Step 2: Investigating the cause
- Step 3: Identifying the solution
- Step 4: Building the case
- Step 5: Submitting the case
- Step 6: Tax relief
You may initiate this process on your own or with the help of a tax professional.
Income Tax Relief Programs
As we mentioned, the IRS offers a number of tax relief programs that can make paying off tax debt more manageable, and in rare cases, not necessary at all. Below, we’ll take a look at some of the tax relief options that may be applicable to your situation.
Keep in mind, you must apply for and be approved for these tax relief solutions with the IRS.
If you cannot currently pay your tax debt in full, but have the ability to pay what you owe back over time, you may choose to apply for an IRS installment agreement. An installment agreement allows you to pay off your tax debt in smaller increments over a predetermined period of time.
If an installment agreement is approved, the IRS will immediately put a stop to any wage garnishment, property seizure, or federal tax lien. This will also help reduce any failure-to-pay penalties they are currently enforcing, lessening the overall amount of money you’ll owe over time.
Community Tax offers installment agreement advice within our income tax debt relief services program. We can help you negotiate a monthly payment plan catered to your unique circumstances.
Can I Settle My Debt for Less?
With the help of a tax professional, it is possible to pay less than the total amount you owe. There are various IRS tax relief programs available, including the government’s Offer in Compromise program and declared uncollectible resolutions.
Offer in Compromise
The Offer in Compromise or OIC program is an Internal Revenue Service feature that allows any qualified taxpayer with unpaid tax debt to negotiate for a settlement that is less than the total outstanding balance.
While rare, if approved, taxpayers may find the IRS will forgive debt in the hopes of receiving as much of the total bill as possible. In order for the IRS to approve an offer in compromise, the taxpayer must meet one of the three following conditions:
- Effective Tax Administration
If the taxpayer does not contest their collectability or liability but can demonstrate through certain and specific circumstances that paying their debt would create an unfair financial hardship or financial distress, the IRS may accept the offer in compromise.
- Doubt as to Collectability
This means the taxpayer will never feasibly pay off their tax bill in full. The IRS will examine your assets and current and projected future income to determine if they will potentially collect more from enforcing traditional collection means than they would if they settled for an offer in compromise.
- Doubt as to Liability
This condition requires the debtor to prove there is doubt the assessed tax liability is correct. This could be due to examiner mistakes, omitted information, or new evidence that would change the total tax owed.
Currently Not Collectible
If currently declared not collectible, your tax debt will be put on hold for a set period of time due to your hardship status. While your account is in this status the IRS will generally stop all collection activities, meaning your assets and income won’t be levied.
However, your debt may still accrue interest and other failure to pay penalties and the IRS is still able to file a Notice of Federal Tax Lien, which can affect your credit rating negatively.
Before you can file for a Currently Not Collectible (CNC) status, you’ll need to file any delinquent tax returns the IRS will also need a detailed look at your financial information, including:
- your income status
- current expenses
- and other debts you may have incurred, like student loan or mortgage debt.
After being placed in CNC status, the IRS may annually review your income to determine whether your situation has improved in the meantime. Keep in mind that the IRS can also attempt to collect your original tax liability up to 10 years after the date they were assessed.
Innocent Spouse Relief
Looking for income tax debt relief services as a spouse of a delinquent taxpayer? Many married taxpayers choose to file a joint income tax return due to the benefits this particular filing status allows.
However, when you file jointly, both taxpayers are severally liable for the tax, and any interest or penalties that result from the joint return, even if the couple later divorces. That means you can be held responsible for all the tax due, even if your spouse earned the reported income or improperly claimed credits and deductions.
If your spouse or former spouse failed to report income, improperly reported income, or claimed improper credits or deductions, we can help you apply for Innocent Spouse Relief .
We can help you prove that you are an innocent spouse as defined by the Internal Revenue code, exempting you from the taxes caused by another person.
Does the IRS Offer Complete Income Tax Debt Forgiveness?
Complete debt forgiveness occurs in only the rarest of cases – the IRS will rarely cancel debt. While partial debt forgiveness from the internal revenue service is more common, you must meet a variety of qualifications in order to apply for this distinction.
You must prove that you do not have the means to pay your tax debt, have few assets that the IRS would be able to levy, and don’t make an income above the minimum need for essential living expenses.
There are strict regulations regarding all of the aforementioned options, so it’s in your best interest to file with a professional’s help. If you owe an unmanageable amount of back taxes and need filing back taxes help, talk to a tax preparer at Community Tax and determine the best route for settling your debt for less.
Get Professional Tax Help with the IRS Tax Relief Services
Our income tax debt relief services can help you reduce or even eliminate your tax debts. The tax practitioners at Community Tax are experts in negotiating resolutions and providing income tax debt relief services.
When you’re in need of tax advice, Community Tax can help. Get advice for all of your tax relief needs by calling 1-888-676-4128. Our team of tax experts are ready and waiting to provide you with the income tax debt relief services you need.