IRS Problem Solutions
IRS Penalty Abatement: This form of tax relief either reduces or changes the tax, penalty or interest amounts to a lesser amount due. Abatement typically refers to actually eliminating an assessed tax liability. The term adjustment more commonly refers to reducing or altering the assessed tax liability. The IRS may also be willing to review the penalties which created a tax liability, if they feel there was not willful neglect on the part of the taxpayer.
IRS Offer in Compromise: The most desired tax relief program is the IRS Offer in Compromise because it compromises (or settles) a delinquent tax liability for a % of what is owed. The discount on accepted offers is significant and oftentimes provides the taxpayer with a much needed financial fresh start. Other commonly used terms for this IRS tax solution are IRS tax settlement, settle your IRS debt for less, and IRS debt settlement. There are complex regulations and guidelines for filing and qualifying for an Offer in Compromise. For this reason, it is prudent to seek the assistance of experienced tax reduction advisors to insure you give yourself the best possible chance of settling your IRS tax debt for less.
Installment Agreement: An IRS installment agreement is a monthly payment plan which allows you to pay off your past due tax liability “over time”. Once you are approved for an installment agreement the IRS will no longer continue to pursue you with their collection efforts. However, receiving this form of tax relief requires that you remain current with all future tax filings and all future payment obligations. Taxpayers that cannot qualify for the Offer in Compromise typically establish these long term IRS payment plans as a way to remit their past due tax liability within some sort of affordable monthly guideline based on their financial budget.
Unfiled Tax Returns: If you have delinquent, unfiled tax returns then it is important to address this problem immediately. Completing your unfiled tax returns will minimize penalties and interest, as well as help avoid aggressive IRS collection actions like a tax levy, seizure of other assets or an IRS lien. Most taxpayers who have not filed their tax returns have acted in this fashion because they feel they are unable to pay the tax liability that will be created by submitting their tax returns. However, it is almost always in your best interest to file back tax returns. The IRS can assess a late filing penalty of up to 25% and the accrued interest will begin immediately, increasing your tax liability rapidly.
Currently Not Collectible (“CNC”): The status called Currently Not Collectible is most often used for a delinquent taxpayer that cannot qualify for an Offer in Compromise and simply cannot afford to pay a monthly amount under an Installment Agreement. If a taxpayer is given CNC status, the IRS will not pursue collection action. However, if the taxpayer's financial situation improves the IRS will then remove the file from Currently Not Collectible status and attempt to begin collection of the past due tax liability.
While, the IRS does offer a wide array of different relief programs and solutions for taxpayers that are delinquent and are in need of special consideration, its ultimate goal is to collect on delinquent tax liabilities. The tools in the IRS collections arsenal are very powerful. The complexities of the different relief programs can be daunting for the average taxpayer to understand and successfully receive some sort of tax relief assistance. For this reason we encourage you to seek help for your IRS tax problem by using expert IRS tax advisors.
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