IRS Tax Relief Programs: Find a Tax Program For Your Tax Problem

Anyone struggling with debt can relate to the stress and frustration that goes hand-in-hand with owing a lender money.  Dealing with past due credit card payments or other common debts can be nerve-wracking, however nothing quite compares to the collection methods of the Federal government.  If you owe the IRS back taxes, your financial future depends on the steps you take to resolve your tax problems.  Do not be fooled into thinking this is a debt that you can avoid or sweep under the rug.  The IRS may work slowly at times, but rest assured they will one day catch up with you; the sooner you take action to address this problem, the sooner you can move on with your life.  Here are a few tax relief methods that can be used to resolve your IRS problems depending upon your tax and financial situation.

• Offer In Compromise Tax Program

  
  This option allows a taxpayer to actually reduce the amount of taxes owed, making it possible to pay off the liability and resolve the tax issue. Reaching a settlement with the IRS is not as easy as settling debt with traditional lenders, however it is an option if you qualify. To qualify you must be able to show that the amount owed is incorrect, the back taxes owed will never realistically be able to be collected or the collection of the back taxes would create an undue financial hardship for the taxpayer. In most situation the third option is reserved for elderly individuals or those with a disability. Due to the complex nature of the process it is recommended anyone considering an Offer In Compromise work with a tax professional.
  
  

• IRS Payment Plans

  
  Under certain circumstances a taxpayer may be eligible for an IRS payment plan or installment payment plan. There are several types of installment plans available, each making it possible to pay your tax liability in full or part of the amount owed.  By making monthly installment payments you are working toward eliminating your tax debt, however keep in mind penalties and fees continue to accrue. Depending on your financial situation you may qualify for one of the following installment plans; Guaranteed installment agreement, streamlined installment agreement, Financially verified installment agreement or Partial payment installment agreement.  Each is dependent on your personal financial situation, amount of taxes owed and your ability to repay the taxes.
  
  

• Penalty Abatement Tax Program
  

  
  

  In some cases you may be able to reduce the amount of taxes owed with an abatement. This action reduces or eliminates the interest and penalties applied to the back taxes owed. To be eligible you must be able to pay the original balance in full upon approval of a penalty abatement.  You must also prove that you meet conditions that prove you should not be responsible for interest and penalties.  Examples include but are not limited to; divorce, illness, natural disaster, death of close family member and long period of unemployment.
  
  

• Financial Hardship Tax Program
  

  
  

  If you are able to prove that you are experiencing a financial hardship that makes it impossible to repay the IRS in your current situation, you may be declared uncollectible. This would halt collection efforts at the time, however the IRS has the right and will resume collection actions when your financial situation improves.  Be prepared to supply a detailed description of your current financial situation as well as submitting the required IRS forms to be considered for this type of relief.
  
  

• Innocent Spouse Relief Tax Program

  
  Once a joint tax return is filed, both parties are held equally liable for any tax liabilities that are owed. If one party can prove to the IRS that they are not responsible for the tax liability they may be able to be granted innocent spouse relief and the tax burden will be removed.

It is highly recommended that anyone owing back taxes to the IRS consult a tax professional to discuss in detail the options available to resolve tax liabilities.  There are options available and while the process might be frustrating and time consuming, it is a better then the alternative which may include wage garnishments, bank levies, and tax liens.