Tax relief is a category that encompasses many options. Here we go through and explain the various options for tax relief. Offer In Compromise tends to be the best solution for most cases that qualify, but there are other options that still help if you do not qualify.
See our video explanation of tax relief options if you prefer to watch it. Keep reading for the written explanation.
In the vast majority of tax debt cases, Offer In Compromise is the best solution if you qualify. The trick is not as many people qualify as tax relief companies make you think.
Here are the options for the tax relief:
The best option for most tax debts. Qualifying is based on the following:
Effectively a payment plan for $0/month. The IRS then can ask for financial data again at a later date. If income stays the same, Currently Not Collectible status is generally renewed.
How to get Currently Not Collectible Status:
The upside is the debt might expire before you are required to make any payment. The downside is if you make more income and the debts are not expired, the IRS might be asking for payment at a later date.
Setting up a payment plan with the IRS will release any garnishments. It does not save any money unless a penalty abatement is approved as well, which we will cover later here.
Payment plan options:
Most payment plan cases should have a penalty abatement requested.
Payment in full is another way to get tax relief in the sense it will stop any garnishments and stop the IRS collection process. If you have more cash than the tax debt, often the best move is to pay it off and request a penalty abatement. Most people reading this are probably not in that category.
Whether doing a payoff or payment plan, you might qualify for penalty abatement. Most taxpayers qualify for a first-time penalty abatement, and we will have a link to our page on that below. Getting penalty abatement on other years requires a reasonable cause. Basically, you need to have a good reason that the taxes were not paid and/or filed on time.
If you think you could benefit from the help of a tax attorney, schedule a consultation with one of our expert tax attorneys here or call us at (888) 515-4829.
We order the information, check it all out, file what needs to be filed and proceed on the best resolution. If we cannot help you we’ll tell you. No false promises for settlements. We only submit settlements that can be accepted.
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