How to Get Relief From Tax Debt

There can be several reasons behind your inability to file your tax returns. Fortunately, the Internal Revenue Service recognizes that a person may be going through the trauma of losing a job or suffering from a serious medical condition, and on occasions are willing to help you out. This can comprise of re-modifying your tax payments or offering a total debt relief, where you will be entitled to pay nothing. However, opting for this route requires patience, as the procedure can take up to a year.

Instructions

  • 1

    While the IRS agents are under strict orders to ensure that everyone pays taxes, they can be willing helpers as well if you can provide proof of your current financial condition. However, before doing that it is important that you take help from a tax professional or any other agent, who specializes in this field, as there will be certain fine prints in your tax returns that you may not be aware of. Moreover, if the IRS decides to help you out, you want to exactly know what position is more suitable for you.

  • 2

    Typically there are five ways to implement a tax debt policy. This will include agreeing to pay in monthly instalments to the IRS or a partial payment system where you intend to pay out on a long term basis. However, the most popular may be an offer in compromise, where you settle on an agreed amount, and pay it on a monthly or a lump sum basis. However, this amount may be relatively lower than the overall balance you may owe.

  • 3

    In other special cases, the amount may be waived off, where the IRS recognizes that your financial position will not improve any time sooner. They can then voluntarily spare you the amount. However, if your situation is likely to improve after a year or so, you will again be asked to pay taxes.

    There are IRS tax debt relief companies which offer help and entertain your request on broad areas such as tax liens, wage garnishments and levies.

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