Ways To Get IRS Tax Debt Relief￼
After 2021, the US government has imposed more strictness on collecting taxes. The government has planned to increase the revenue by upto 3 trillion in the next decade. To meet this amount, not only wealthy taxpayers but middle class individuals will also be forced to pay more taxes. Though it’s still a proposition, the bill has not passed in the Senate yet. Still, the taxpayers are concerned.
Even now, more and more people cannot pay taxes, which is why they always end up in tax debts. Once they enter the interest cycle, their taxes double day by day, and in the end these tax debtors have to face the worst consequences. The IRS can seize their bank accounts or get hold of their properties and other valuable assets.
Therefore, you need to settle your debts with the IRS timely. You can seek help from tax debt relief companies like Coast One Company in the USA as there are still loopholes in the IRS tax payment system that lets you pay your taxes smoothly. Unfortunately, as many individuals are not aware of the system, the fear of the IRS fails them to make wise decisions. To avoid this situation, we have brought seamless ways which will let you settle your debts with the IRS.
Methods to Get Solace From IRS Tax Debts
If you are under IRS tax debts, then it’s time to be realistic and take some actions to reduce your debt. We have shared the best possible methods which you can consider to lower your taxes and make your life easy.
Installment Plans Approved By IRS
The best and easiest way to get relief in your tax debts is making installments of your current outstanding payments. Usually, the IRS does not approve these installments unless you negotiate with IRS officials and show them that you meet their certain standards. The IRS has the following certain general terms to give you installment approvals.
- You should be able to demonstrate that you have previously submitted your taxes.
- You’ve always paid your taxes on time.
- You have the option of paying a certain sum each month.
- Your debts do not exceed $50,000 USD if you want to apply for a short term payment plan(i.e. You can pay your debts within 180 days)
- Your debts do not exceed $100,000 USD if you want to apply for a long term payment plan. For business owners, they can also apply for a long term payment plan if their debts are under $25,000 USD or less.
Other than these terms, the IRS can also ask you for specific terms depending on your interest conditions. It is advisable not to go alone to the IRS office and ask for help from tax attorneys or some tax debt relief companies. These companies will give you strong points to negotiate or negotiate with the IRS on your behalf. These companies include expert attorneys so they can argue with valid points and let you succeed in getting installment plans from the IRS.
Offer In Compromise
It is another great method to save yourself from paying hefty amounts of interest to the IRS. This method includes paying less as compared to your total debts. You need to convince the IRS that you are not in a state to submit that much taxes.
Therefore, you must be granted a bit of relief in exchange for a smaller amount. If you stand on the following conditions, the IRS might approve your offer in a compromise request.
- Your sources of income are insufficient to pay taxes.
- Your spending does not exceed your sources of revenue.
- You don’t have any assets or equity.
You must also submit a charge of $256 and some initial payment to file a request for an offer in compromise, which is non-refundable regardless of whether your application is accepted or not. Remember that the IRS will never settle your obligations for pennies on the dollar. You must pay a reasonable amount toward your debts. Furthermore, if you have an open bankruptcy case, you won’t be able to get an offer in compromise approved.
Innocent Spouse Programs
This relief program is for people who filed joint tax returns as a couple but are now legally separated. If your spouse, for example, did the following, you won’t have to pay any communal taxes.
- Does not declare his or her earnings
- Falsely reported his or her income to the IRS and claimed credits that were not allowed
You don’t have to pay collective taxes if you can confirm these things and provide your separation records. If you prove your innocence within two years of receiving the IRS notice, the IRS will deduct your taxes from the total amount owed.You may also be eligible for ISP if you can demonstrate that you are divorced from your spouse and have not shared a home in the previous year prior to filing for relief.
Furthermore, if you do not qualify for an ISP, you may be able to obtain equitable tax relief by demonstrating that your spouse lied to the IRS about their income.
However, obtaining Innocent Spouse Relief is a difficult process. If you need help with back taxes you can hire tax debt reduction organizations to help you understand the process and avoid paying high interest rates.
Limitations of Liability
Usually, the IRS has a duration of 10 years to collect the taxes, penalties, or interests from the date of filing. You can use this statute of limitation and argue with IRS officials to make them stop seizing your assets.
Well, it’s best not to wait for this duration because your interest will continue to increase until you pay your taxes fully.
Currently Non Collectible
If you are currently jobless or in poor financial condition, the IRS can easily relieve you from your taxes. All you need to do is to request the IRS with your current financial status. Once approved, you will be given a currently non-collectible (CNC) status.Once you have recovered from your financial crisis, your status will be changed. IRS visits every two years or can also visit any time to check your current status.
Though the methods mentioned above are helpful, you still need help from tax debt relief companies. Once you discuss your case with them, they will provide you free advice on what to do next and how you can proceed with your case with the IRS. You can also hire them as your representatives in front of the IRS.