Common Solutions the IRS Offers
The old saying that, “nothing is certain in life except death and taxes” has never been more true or frightening. These days, fear of the IRS is creeping in and nothing will get your heart racing quite as fast as opening the mailbox and finding a notice from the IRS.
When they come knocking, you might think there is nothing you can do. You may fear that you will have to liquidate your assets, sell your car, or even put your home up for sale to afford what the IRS claims you owe.
The great news is that you may not have to pay the full amount, and before you write that big check you should explore alternatives.
The IRS understands that people fall behind on taxes, and they have programs in place that can reduce the amount you owe, sometimes significantly.
Note: Sancus Tax Resolution recommends that you reach out to a professional who knows how to aggressively negotiate with the IRS on your behalf. If you owe back taxes, our firm can help negotiate with the IRS and potentially settle your taxes. Don’t wait, contact us now. Our tax resolution specialists can navigate the IRS maze so that you can have peace of mind. We play chess, but they play checkers.
With that said, here are some of the most common tax relief solutions the IRS has to offer – and how you can access them.
#1 Payment Plans
Also known as installment agreements, one of the most common ways taxpayers approach the repayment of their back taxes is by setting up a payment plan. This type of program a popular, and for good reason – it can greatly reduce the stress you feel as you deal with an unexpected tax bill.
There are pros and cons to this approach, and it is important to explore your other options very carefully. With a payment plan, you will need to pay all that you owe, but you can stretch the repayment out over months or even years. However, the IRS will charge interest on the remaining balance until paid, so by using this option you will pay more than what you currently owe.
Offer in Compromise
Another program the IRS offers is known as the offer in compromise, or OIC. This option allows eligible taxpayers to settle their tax obligations for less than the IRS says they owe, and that means you could save money if you qualify for this program. Click this link to read more about this option.
IRS Hardship Program – Currently Non-Collectable
The IRS hardship program is another option for taxpayers who are simply financially unable to pay what they owe. If you are truly strapped for cash and worrying about your tax situation, you should definitely check out the hardship program, but you should not try to work with the IRS on your own – You wouldn’t go to court without an attorney.
The hardship program has stringent requirements, and if you make a mistake you could find yourself locked out of the process. By working with a tax resolution specialist, you can increase your odds of success and possibly save yourself a lot of money in the process.
What is the best option?
As you can see, the IRS does offer a number of programs that can reduce the amount you owe – or even forgive your balance altogether. If you are eligible for one of these tax relief programs, you could find yourself breathing a lot easier and even get your life back, but the IRS is not likely to tell you about them.
The IRS has an interest in keeping these relief and resolution programs under wrap. Their goal, after all, is to collect as much money as they can, and telling taxpayers that are ways they can pay less is just not in their interest.
For all of those reasons and more, it is important to work with a tax resolution professional whenever you are dealing with an IRS problem. Whether the liability is the result of years of unfiled taxes, a discrepancy in the amount reported and what the IRS says you owe or anything else, specific expertise can make a huge difference – and save you a lot of money in the process.
Knowing about the available resolution options is the first start, and that education can be a huge point in your favor. Now that you know what types of programs are available, it is time to take the next step, so grab your phone and contact us, your tax resolution specialist, today at 323-443-3411 for a free confidential consultation.