If you’re looking for IRS tax relief, you’re probably in some dire straits.
Typically, those dire straits come in the form of back tax debt owed to the IRS. Back tax debt comes around when people ignore it, records aren’t properly maintained, or someone’s in over their heads with business deals and income that they don’t know what to do.
However you find yourself in back tax debt, looking for IRS tax relief is easier than you think.
One way to get IRS tax relief is through the IRS Fresh Start Initiative. This program eases the process for people and businesses to get some slack from the IRS.
This initiative limits the IRS’s ability to file tax liens against people, in most circumstances. Now, it takes $10,000 to file one, instead of half that.
The Fresh Start Initiative also makes it easier to get tax relief through a payment plan by requiring taxpayers and businesses to file financial statements with $50,000 of back tax debt instead of $25,000.
And, you can get that tax relief over an extended period of time as you can pay your back tax debt over six years instead of just five.
Another way to get IRS tax relief is through an IRS payment plan.
You can get IRS tax relief by paying your back tax debt through a debit plan, or through a voluntary wage garnishment. The debit plan will run you $52 in fees, while the wage garnishment plan will cost you $120. You’ll also have to give up your future tax refunds as part of the payment plan.
As part of the Fresh Start Initiative, the IRS made it easier for taxpayers to get this form of tax relief by paying their back tax debt over time with a payment plan. Just like with the financial statement requirements, tax debt amounting up to $50,000 can be paid off with a payment plan, as opposed to the former $25,000 maximum amount of just a few years ago.
If April 15 comes too soon and you need extra time to save some funds to pay your tax bill, you can file Form 4868 on tax day and get an automatic six-month extension to file your return. To get a payment plan in place so you can tackle your tax debt of up to $50,000, file a Form 433.
Payment plans require the filing of all delinquent returns, and you’ll have three years to pay off up to $10,000. If your total bill exceeds that, you’ll have six years to pay it off.
You can also find IRS tax relief in the form of penalty abatement.
IRS penalties can run up the score on your back tax debt. It’s compounded daily and remains for the life of the unpaid tax debt. It’s easy to calculate: the short-term rate, plus three percent.
But by filing Form 843 you can get a bit of relief. The IRS will make the call as to whether you’re eligible, but no stone should be unturned when it comes to reducing your total bill.
If you’re down on your luck with IRS tax issues, finding IRS tax relief is easier than you think. Check out our website to learn how a tax professional can help.
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