IRS Debt Relief Advantage and How to Qualify

IRS debt relief can usually be done through an “offer in compromise” or other tax resolution avenues. This is defined as an agreement reached between taxpayers and the IRS which allows taxpayers to settle their debts for less than what is entirely owed.

Every person who owes tax debt can be pre-qualified for the IRS debt relief programs. However, the IRS typically rejects most offers. Here’s are a few quick ways of finding out if you qualify for IRS debt relief.

Forgiven Under Special Financial Crisis

Under some circumstances, a taxpayer can have their debt partially forgiven by the IRS. Note that when the IRS decides to forgive tax debt, the current financial state of the taxpayer is critically considered. Meaning the IRS can’t collect more than what a taxpayer can afford to pay. In the event that a collection action by the IRS will put a tax debtor in the financial crisis, the IRS won’t be able to collect the back taxes.

How Does the IRS Debt Relief Initiative Work?

When you have qualified for the OIC with the IRS, you will be allowed to pay the new total tax debt in either an installment or a lump-sum payment format. The details here will vary based on your monthly income, the kind of solution package you choose and your total tax debt. The process is usually confusing if you are doing it alone. It is recommended that you work with tax attorneys so they can apply the right tax debt relief strategies to your case.

Advantages of the IRS Debt Relief Initiative

There are a few benefits that affected taxpayers can enjoy if they qualify for the tax relief initiative. Some benefits that can be expected when taxpayers’ relief tax debts include:

#1 Avoid Wage Garnishments

Usually, the government can garnish your wages until you pay all your tax debt. However, this is not the case for those who are participating in the IRS debt relief program. Under the program, your wage is safe from garnishments.

#2 Reduce Tax Burden

This is one of the most significant benefits of the program because it allows you to pay less than what you owed. This is usually the ultimate goal for the IRS tax debt relief program.

#3 Avoid Liens

Usually, taxpayers who owe the IRS money and are not taking action receive IRS liens to their property and also on credit reports. The IRS can take possession of these assets until your tax debts are fully paid.

Recommendation from Tax Experts

It typically takes one year to have your case approved by the IRS. In the event that you are approved, you will have the responsibility to pay the original tax debt owed plus an assessment of interests and penalties. Keep in mind that not all taxpayers can qualify for the program. To increase your approval chances, the most important thing to do is to make sure you have a tax attorney or tax debt relief experts working with you so they can navigate you through the tricky application process. By doing this, you will be more likely to be accepted to the program and have a higher tax reduction.

Working with a tax debt relief expert is the best way to reduce tax money to the IRS.


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