If you are facing financial hardship, you could be eligible to receive 90-99% tax debt forgiveness.
When seeking a resolution with the IRS, the IRS wants to know one of three things.
- Do you have a financial hardship?
- Are you expecting any future employment/income?
- And do you have any disposable income today?
You might be thinking to yourself that these relief programs are only available to people who are in extreme circumstances, for example – becoming unemployed due to a catastrophic event leading to disability. While this is a true circumstance that will qualify taxpayers for a 99% reduction, the IRS also considers many other variables to determine whether to offer relief.
There are three different types of tax debt relief programs available out there based on a taxpayer’s circumstance. Your circumstance will be determined by your assets, liabilities, disposable income, and current living situation. The types of resolutions available are:
- Installment Agreement
- Currently Non-Collectible
- Offer in Compromise
To see if you qualify for a reduction, take our free tax relief survey.
There are a few different reasons why people find themselves in tax debt, and the IRS knows it too! The IRS often sends letters to taxpayers to get them started on an installment agreement. If you find yourself in this situation, you may be shocked to find the IRS garnishing your wages or levying your bank accounts after failing to open their mailed letters or choosing to ignore them! The more you wait, the worse your problem becomes.
The Fresh Start Initiative is a program that makes it easy for a taxpayer to work with the IRS and pay back tax debt. For example, let’s say that you owe $50,000 in tax debt and your neighbor owes the same amount.
If you and your neighbor are both seeking tax relief, the IRS wants you to prove that you cannot afford to pay your tax debt liability. Now, let’s say you are employed, and you can prove to the IRS that your disposable income is $50/month after your necessities and expenses, whereas your neighbor may be $500.
Your neighbor might still be able to reduce their payment plan to $150/month instead of paying $500/month. In your situation, because your disposable income is much lower, and if your assets are not worth a tremendous amount, then you may qualify for what is known as an Offer in Compromise.
An Offer In Compromise is available to taxpayers who can prove to the IRS that they have a financial hardship and cannot afford to pay any of their liability. To see if you are eligible for an offer in compromise, visit here.
You can apply for tax relief on your own, but the IRS does not make it that easy! Even though they are improving their ability to serve, it may take hours to get on the phone with an IRS Agent. Submitting a case for tax debt relief requires the organizational skills to have all the right documents in place, such as finances, unfiled tax years, and proving your financial hardship. Therefore, most people choose to work with Enrolled Agents, Certified Public Accountants, Tax Attorneys, and Tax Relief firms.
By taking this 1-minute survey, you can find out the type of resolution you qualify for. Start today – get the relief you deserve!