Tax debt is a huge issue for many people in this country and unfortunately, it often results in significant financial problems for taxpayers. There is good news, though, and it comes in the form of the many resolution options available to those struggling with debt. As one of the main causes of tax debt is the penalties and fees associated with not paying or filing taxes on time, it stands to reason that one of the best methods of resolving the debt would address those added charges.

Tax abatement service, offered by companies like Community Tax, can help remove IRS penalties that were added to an original balance and lower the taxes you owe to the government.

What is Tax Abatement?

In the event that an individual taxpayer or business receives a tax bill that is too high, or overpays on a tax bill, they have the right to request a tax abatement. A tax abatement is a reduction or exemption (case dependent) of the level of taxation an individual or company is responsible for as granted by a government entity. Although towns and cities typically have the authority to grant tax abatements, there are state and federal government programs as well.

These entities typically include:

  • The federal government
  • State treasury offices
  • Municipalities
  • City governments

The most common type of tax abatement is property tax abatement. This type of tax abatement is offered to individual buyers or businesses as an incentive to encourage economic development and expand existing operations within the city. These tax abatements function as either temporary or permanent breaks on property taxes.

Whether you’re looking for a smart solution to your property tax problems or you’re in search of IRS penalty relief, seeking tax abatement help may be the best next step for you.

How do I know if I’m Eligible for a Tax Abatement?

Eligibility for a tax abatement depends on several different elements ranging from the type of incentive being offered to the government entity’s intended target recipients.

For property tax abatements, some properties are listed for sale with the tax abatements already attached to them—others may require buyers to go through the application and approval process for eligibility. Note that depending on the terms and conditions of your chosen program, you may be required to renew and revisit your eligibility on a regular basis.

How Do I Negotiate for a Tax Abatement Service?

Negotiating for a tax abatement service can be a tricky venture. It involves convincing the IRS or State that the penalties were improperly assessed or that the missed payment or filing deadlines occurred because of circumstances out of the individual’s control. This could involve illness and injury, being out of the country and unable to pay or other similar reasons. Proving these factors played a role in a tax debt’s growth needs to be based on solid records and evidence to show the IRS that it’s true.

Issues with Tax Abatements

A tax abatement is an excellent and reasonably attractive option for those who are eligible to save money on their taxes, though it’s important to note that there are a few precautions to consider before agreeing to a tax abatement.

  1. Finite timeline

Though permanent tax abatements do exist, the vast majority of tax abatement programs enforce finite timelines which eventually lead to expiration. One the abatement is expired, the taxpayer will need to be prepared to pay a higher tax rate and modify their budget accordingly.

  1. Possible rescindment

Those interested in applying for a tax abatement should know that the authority granting the abatement has the authority to rescind it. For example, if the owner of a property neglects to keep up with regular property tax payments and becomes delinquent, the governing entity has the power to revoke the tax abatement. To avoid this possibility at all costs, abatement-approved owners are encouraged to make their payments in full and on-time.

How Can Community Tax Help Me with My Tax Abatement?

This is where a company like Community Tax comes into play. These experts can perform a financial analysis and look at supporting records to determine the likelihood that a tax abatement service could play a role in reducing tax debt. The practitioners on a tax abatement case would be able to explain why an individual should not have been charged the penalties or fees in the first place and then have them removed.

At this point, many taxpayers may just be able to repay the debt they owe and be considered current with the tax agency and have no more debt concerns. If there’s still a problem paying the balance after a tax abatement service, Community Tax professionals can find a suitable resolution plan for the taxpayer’s needs to get them out of debt. Call today to speak to a Community Tax analyst about your tax abatement needs. Call now 1-844-358-2574.