Tax Relief Programs
Two things are certain in life: Death and taxes. It is true that the United States tax system is one of the most robust and strict systems in the whole world. Evading tax in the United States is virtually impossible. The IRS is among the most feared agencies in the country. But all these facts do not mean that there is no relief for those who actually deserve it. In fact, a number of tax relief programs related to property tax and income tax relief are available. Following is a brief summary of major tax relief programs available to American taxpayers.
Offer in Compromise:
Do you owe the IRS a large sum of money, but your actual circumstances are such that it is impossible for you to pay? Offer in Compromise is designed for similar situations, where IRS allows income tax relief (along with other tax reliefs). By using this option and proving financial hardships, you may be able to negotiate a considerably less amount than actually owed to the IRS.
Installment Plan:
A relatively easier option to get is to have an installment plan instead of paying all your dues in a lump sum. As long as you have a genuine case, the IRS rarely objects to a payment (installment) plan.
Extension Request:
Paying taxes on time is ideal but often very difficult. You may be able to easily get a one-time extension for your tax due for up to 120 days. However, it must be remembered that the IRS usually applies a small percentage of interest per month. Hence, the option should be used only in case of extreme circumstances.
Abatement of Penalties:
Typically, the IRS will impose penalties and interest charges as soon as you fail to clear your amount due by the deadline. However, in some situations, it may be possible to get those penalties removed or reduced. In a few rare cases, you may even be eligible for the tax relief fund, where previously paid penalties (and interest charges) are refunded.
Covid-19 Relief:
The US government has announced a special tax relief program in the wake of coronavirus. A number of individuals, families, and companies are eligible for this program.
As discussed above, a number of tax relief options are available. At the same time, however, it is also important to mention here that these tax reliefs are not very straightforward to get since the tax authorities are always looking to maximize their tax collection. Moreover, gaining tax relief for property taxes can be trickier than for income tax.
You may need to find certain loopholes or weak spots in the tax system to gain maximum out of your tax relief request. This is where professional tax relief services come into play.
A simple “tax relief near me” Google search will provide you with tons of websites, each claiming to guarantee tax relief for you. However, you need to be very careful when choosing tax relief services since your financial well-being is at stake here. You may end up losing even more money if you get into the wrong hands.
Never make a lump sum prepayment in this regard, and always look for a track record of the service provider to ensure that you are in safe hands. Remember that tax authorities’ revenue collection policy may be aggressive, but the right professional help will minimize any negative impact on you.
Every tax preparer is not a tax relief expert. So, when seeking professional help, specifically ask for someone who is an expert in tax relief matters.
If your application is rejected, you can appeal within thirty days using Form 13711
(Request for Appeal of Offer in Compromise).
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