If you owe back taxes, you can get tax relief help that will help you with your tax bills and get you back on track. Many people owe lots of money in back taxes and feel overwhelmed by the prospect of dealing with the IRS. Although it can be scary, there’s definitely help out there for those in need. These six facts will help any skeptic understand that they can, and should, get tax relief.
Can You Really Get Tax Relief Help? 6 Facts for Skeptics
1. You Can Set Up a Payment Plan
One of the most common ways to deal with the IRS is to set up a payment plan. Many people think that they need to pay their back taxes in one lump sum. This is simply not true! If you negotiate with the IRS or have a trusted company intervene on your behalf to do the negotiations, you can set up a payment plan that’s comfortable for everyone. What’s more, you can even stretch out the payment plan for as long as you need to.
There are plenty of factors that come into play when you’re setting up a payment plan, so it’s best to work with a team that understands all of the intricacies of tax law and has experience working with the IRS if you are unsure of how to proceed. Fortunately, getting a plan in place will allow you to rest easy knowing that you are on good terms with the IRS again.
2. You Can Have Your Tax Penalties Forgiven
If you owe back taxes, there’s a good chance that you’re accumulating lots of tax penalties. Sometimes, these penalties can even total to more than your back taxes themselves! Fortunately, there’s a good way to deal with this problem; having your tax penalties forgiven. Although it doesn’t happen all of the time, and you certainly shouldn’t count on it, you might be able to have your penalties wiped clean in certain cases. To do this, you have to meet a specific set of criteria and ensure that you’re on some kind of payment plan with the IRS.
Criteria differ from state to state, so it’s a good idea to talk to a professional who deals with back taxes in order to get a full idea of exactly what your options are. You can try to navigate the situation yourself, but generally speaking, you will be much better off dealing with a company that knows specifically what to do. Having your tax penalties forgiven is a great way to wipe the slate clean and feel much better about your tax debt. It can enable you to feel confident that you can, and will, pay your back taxes.
3. You Can Apply for Currently Not Collectible Status
Although rare, you can sometimes apply for currently not collectible status. This status is generally reserved for those who have a specific reason why they can’t pay their back taxes and is generally related to how much income you have. The IRS reviews your income and determines that they are not able to collect any taxes from you, at which point you are put on a currently not collectible list, and your taxes are put on hold until you are able to reasonably pay them.
This status is temporary, and it’s difficult to get. Also, the IRS can and does look at your income regularly to make sure that you still apply for it. Since there are so many intricacies affiliated with this status, it can be difficult to understand exactly what to do. It’s vital that you talk to a professional team that deals with back taxes if you are applying for this status or think that you could qualify for currently not collectible. Being put into this status does not erase your tax debt; it merely freezes it, much like deferring your student loans.
4. You Can Compromise With the IRS
The IRS can negotiate with people, and it’s sometimes possible to settle with the IRS for a lower amount of debt. You will certainly want to bring in a professional team of back tax experts if you’re thinking about going down this road. In order to orchestrate a good compromise, the IRS needs to understand what your income situation looks like and also must be apprised of your expenses. Often, they will try to get the maximum amount out of you, which is why you need to go with the professionals when you can.
This type of situation is known as an “offer in compromise” and can help you to alleviate substantial past tax debt. If you’re staring down a mountain of debt with no real way to pay it off, consider looking into your options regarding “offer in compromise”. You might be surprised with what you can come up with.
5. You Can Work With a Tax Relief Company
One of the best ways to feel better about your back taxes is to work with a tax relief company to resolve the issue. Tax relief companies deal with back taxes all of the time and are very versed in exactly what all of your options are. They can help you make smart decisions and work with the IRS to get the best relief that you can, as easily as possible. If you have a lot of back-tax debt and are worried about your standing with the IRS, the first call you should make is to a tax relief company that can review your options with you.
When you’re selecting a tax relief company, it’s a good idea to look at their credentials and see what sort of experience they have working with the IRS. The best companies are ones that have an intimate experience with the IRS and a good understanding of the inner workings of it. Those companies can not only help you to get your back tax debt under control but also give you the peace of mind that you’re making the absolute best choice based upon their expert advice.
6. You Can Streamline Your Debt
If you have a lot of back tax debt from several different years, you can streamline it. In 2011, the IRS instituted a Fresh Start program that allowed people with a lot of tax debt to consolidate it and streamline the debt to pay it all on a special installment package. There are specific things that you need to do to qualify for this arrangement, like ensuring that you have filed all of your past returns and are not currently in another arrangement. A tax relief professional can help you navigate the system and make smart choices about your options for streamlining.
If you owe back taxes and need tax relief help, we can give you expert advice and work with you to find a solution that works for both you and the IRS. Our company has 35 years of experience working with the IRS, and we’re founded by a former IRS employee, so we can provide insight that not too many other companies can! Contact Geaux Tax Resolution today to learn more about your options for dealing with the IRS and back taxes.