Finding the Best Tax Debt Relief Solution

 

When you find yourself owing back taxes, you may be at a loss for how to proceed. Unfortunately, many taxpayers don’t know the tax relief options open to them until they face various tax debts as a result of IRS audits, fines, penalties, levies, or liens, as well as unpaid payroll taxes and IRS wage garnishment.

Regardless of your tax challenge, there are five primary methods to get tax relief when you owe back taxes. You may be able to take advantage of just one or two of these solutions according to your specific circumstances.  

#1 Offer in Compromise (OIC)

An Offer in Compromise is an agreement between the IRS and a taxpayer where the latter pays less than the outstanding taxes they owe. The IRS does not accept all applications for Offers in Compromise - the current success rate is only 25 percent. Still, if OIC is ideal for you, we can help you to settle the debt once and for all to avoid further accrual of penalties and interest on the tax debt.

#2 Penalty Abatement

You can apply for penalty abatement when the IRS tacks an automatic penalty onto your outstanding taxes without considering your situation/reason for nonpayment. A tax relief professional can help you to file ‘reasonable cause’, which is written proof explaining the reason for nonpayment. If successful, you will get the penalties removed (or refunded if paid) and have more time to pay your outstanding taxes.

#3 Installment Agreement

Installment agreements get the best reception from the IRS since the taxpayer undertakes to pay the debt in full. You can choose to pay your outstanding taxes in manageable instalments over some time if you cannot afford to pay at once. You can also seek an extension on an existing installment agreement should your financial situation deteriorate.

However, note that you must apply and meet the requirements before IRS approves your installment agreement. Further, penalties and interest will continue to accrue on the outstanding amount until you have paid in full. 

#4 Currently Non-Collectible (CNC)

If you cannot pay your back taxes because your financial situation has deteriorated (e.g. if you lost your job), you can apply for a Currently Non Collectible status. CNC applications can be approved if you show that your total income is less than the allowable living expenses according to federal standards

If your application is approved, the IRS will grant you a reprieve from usual recovery and collection tactics. After 1-2 years, they will reassess your financial situation to determine whether you can resume payments. Also, you are required to notify the IRS if your financial situation improves. Note that penalties and interest continue to accrue while your account is in CNC status.

#5 Tax Audit Appeal

You can contest a tax audit if you feel that the IRS-recommended audit is inappropriate or incorrect. Disputed IRS audits are often settled when you initiate an appeal. Take advantage of the fact that the IRS prefers to resolve such issues because it is expensive, and they lose time and risk judgement against them. You need a tax professional who is familiar with the audit process to negotiate on your behalf.

#6 Innocent Spouse Relief

One spouse can apply for relief from tax liability or penalties for taxes filed jointly. However, you must prove that you were unaware of the understated income or taxes when you signed the tax return. A professional can help you to assess whether this avenue is right for you.

Conclusion

Regardless of the tax relief solution you choose, it is critical to use a reputable and experienced tax relief company. Check their reviews on independent review sites like the Better Business Bureau or get referrals from trusted people in your networks.

The most important thing to remember is that you’re looking for a solution that minimizes or reduces the penalties and interests on outstanding taxes to the barest minimum. That’s what a tax professional can help you to assess according to your particular circumstances.

 

Benefits of Hiring a Tax Debt Relief Company

Let’s admit it-taxes are complex. An average person without a sound background in finance will struggle to decipher tax jargon. Every year, several taxpayers get on the wrong side of the IRS due to their lack of knowledge about tax codes. 

Whether you are a business or an individual taxpayer who has fallen behind on their taxes, it makes sense to get tax debt help. A tax debt relief professional will look at your specific tax debt situation and determine the best solution to help you pay off your debt without straining your finances. Your tax debt relief company will negotiate with the IRS on your behalf.

Here are some ways in which a tax debt relief company can help you.  

Protecting Assets and Income 

The IRS comes down hard on people who do not file their taxes regularly. It has various tools, including wage garnishment and asset seizures, to recover tax debt at its disposal. If you have fallen behind on your taxes, your tax debt relief company will help you identify options to prevent wage garnishment or asset seizure. 

Helping You Navigate the Tax and Regulatory Framework 

Tax laws are complicated. An average taxpayer cannot make heads or tails of these laws. Your tax debt relief professional will help you avoid legalese. The expert will use simple and clear language when explaining your payment options to ensure there is no room for confusion. 

Representation 

The IRS usually does not take individuals acting on their own seriously. To effectively negotiate with the IRS, you need to have some clout and knowledge in your corner. A tax relief professional specializing in IRS representation will come up with a plan to protect your assets and negotiate the best solution with the IRS. 

 Preventing Tax Liens and Levies  

Your tax debt relief expert will help you understand the difference between a tax lien and a tax levy. The professional will take a close look at the facts and circumstances of your case. Once the expert develops a detailed understanding of your case, they will choose the best option to prevent tax liens. 

Support You Throughout the IRS Process 

IRS processes are a complex maze of rules and procedures. A licensed and experienced tax professional knows how the IRS works. Your tax debt relief professional will use their knowledge to manage your case from start to finish effectively. They will support you every step of the way and use their negotiation skills to get the best possible deal. 

FinishLine Tax Solutions offers top-notch tax debt services. Whatever your situation, our team will help you identify the best payment solution to fit your unique needs. To schedule an appointment, call 855-950-2720.