While most of us manage to pay our taxes to the federal government on time without any hassle, sometimes, there can be a delay due to various financial problems. Failing to pay these dues can add to one’s overall debt. Thankfully, the IRS offers several measures to help such taxpayers. This article lists some of the popular IRS tax relief programs that one can avail of to end their tax problems.
Installment Agreements (IA)
This IRS tax relief program is for individuals who cannot repay their tax debt all at once. Installment Agreements allow people to make smaller monthly payments until the entire debt is paid. The IRS has increased the threshold for qualifying for this program to $50,000 from $25,000 and the maximum repayment term from five years to six years. Ta avail of the facility, one can submit an Installment Agreement Request (Form 9465) with their income tax return.
Offer in Compromise (OIC)
OIC, or Offer in Compromise, helps taxpayers settle their tax debt permanently by allowing them to pay less than what they owe. However, this IRS tax relief option is limited only to those going through extraordinary circumstances or financial hardships. Although the OIC program was expanded to cover a larger group of taxpayers going through financial trouble, it is entirely under the IRS’s discretion to permanently settle tax debts.
Currently Not Collectible (CNC)
Taxpayers can opt for this IRS tax relief option if their monthly gross income is barely enough to meet their expenses, let alone paying taxes. Once an individual gets the CNC status, tax collection will stop, meaning it is currently not collectible. However, the IRS will continue to monitor their financial condition to see if they can repay in the future. One can hold the CNC status for even up to ten years, but they will continue to receive an annual bill as per the law.
Penalty Abatement
If one cannot meet their annual tax deadline for any uncontrollable reason, the IRS offers Penalty Abatement. There are three kinds of penalty waiver options under this scheme: Reasonable Cause, First Time Penalty Abatement (FTA), and Statutory Exception. To claim this IRS tax relief, the taxpayer has to inform the IRS which penalty they want to be waived and a justifiable reason. However, note that the waiver does not apply to the interest.
Filing taxes and applying for debt forgiveness can be both tedious and tricky. A single discrepancy or irregularity can result in failure to get tax relief from the IRS. So, one can contact the following tax relief companies for help:
Anthem Tax Services
Started by licensed tax professionals, Anthem Tax Services has over 30 years of experience in tax law and tax preparation. The company offers its consultation in all 50 states and provides help related to IA, OIC, Penalty Abatement, etc.
Fortress Tax Relief
This tax relief company caters to businesses and individuals who owe over $10,000 in tax debt. Fortress Tax has an hourly fee structure and offers Innocent Spouse Tax Relief, OIC, IA, Penalty Abatement, and business tax relief services.
Community Tax
It is one of the few tax relief companies that cater to those with a tax debt of $5,000. An IRS-approved tax relief company, Community Tax offers consultancy for OIC, IA, Streamline Installment Agreement, Partial Pay Installment Agreement (PPIA), Penalty Abatement, and much more.
