Getting tax relief services during a global pandemic can help. Fortunately, there's help with FinishLine Tax Solutions. If you owe back taxes and can't afford to pay them back, find a tax relief services professional. Dealing with back taxes can be hard, but it's especially hard during a global pandemic. Fortunately, the federal government continues to provide tax relief options for taxpayers seeking relief during the coronavirus. Even outside of a global pandemic, there are tax relief services available to taxpayers who owe more than they can pay. We'll share the various tax relief options that are available to you. Additionally, we'll touch on tax relief options that are available as a result of the COVID-19 pandemic.
What are tax relief services?
First, we want to tell you exactly what tax relief services are. If you owe more in taxes than you can pay, you may be eligible for tax relief services. But, the program you qualify for will depend on how much you owe. In other words, those owning more than $50,000 will be eligible for a different program than those owning $10,000. Fortunately, there are several tax relief programs available. Additionally, in light of the current COVID-19 pandemic, the federal government has offered even more tax relief programs.
How do tax relief services work?
Tax relief services are available to taxpayers when they owe more than they can pay. The IRS has several tax relief services that can help taxpayers in need. Enrolling in a tax relief plan enables you to break down your tax debt into payments. Similarly, there are relief programs that can reduce the amount of tax you have to pay to the government. Tax relief services will not clear out your entire tax bill. But it can save you a lot of money in the long run. Additionally, it can make paying what you owe the government a lot more manageable.
What is tax relief?
Tax relief is when you set up a payment plan or negotiate a settlement with the IRS. However, keep in mind that tax relief isn't about totally erasing your tax obligation. Instead, it makes it easier for you to pay back your tax debt. In some cases, you may be eligible for special tax relief options. For instance, if you've been involved in a natural disaster, you may be eligible for special tax relief programs. Additionally, there are special tax relief programs available in light of COVID-19, which we will discuss later.
What are my tax relief services options?
Depending on your tax situation, there are multiple options for tax relief services. Here are a few programs to consider. We will discuss these more in-depth further below.
- Installment Agreement: This program allows you to pay back your debt in installments. In other words, you can pay down your debt in smaller payments. There are long-term and short-term Installment Agreement programs. Available.
- Offer in Compromise: If your debt is more than you can handle, you may be eligible for an Offer in Compromise. Your eligibility for an Offer in Compromise will depend on a few things. In other words, the IRS will first consider your ability to pay, income, expenses, and assets first.
- Penalty Abatement: When you owe tax debt, penalties can also add up. Fortunately, there are tax relief services that may help. In this case, the IRS forgives the penalties on your tax bill.
What is an Installment Agreement?
Another way to think of an Installment Agreement is a payment plan. In other words, you arrange with the IRS to pay back your tax debt in monthly installments. There are long-term payment plans and there are short-term payment plans.
- A short-term payment plan is for those who owe a maximum of $100,000. This maximum amount includes taxes, penalties, and interest.
- Long-term payment plans are for those who owe a maximum of $50,000. This maximum amount includes taxes, penalties, and interest.
An Installment Agreement can be a helpful tax relief plan for taxpayers. It enables you to negotiate an affordable monthly payment plan with the IRS. However, negotiating your monthly payment is a very important step. In other words, you'll want to work with a tax relief specialist on negotiating. A tax relief specialist can help you ensure you get an affordable monthly payment amount.
Offer in Compromise
An Offer in Compromise program can be a beneficial tax relief program. With an Offer in Compromise, you can often settle your tax debt for much less. In other words, the IRS will reduce some of your overall tax debt. But, it's important to note that not everyone will get approved for an Offer in Compromise. The IRS will require financial proof that you are unable to pay back your tax debt in full. In this case, a tax relief professional can help you negotiate your total settlement amount. For example, you don't want to come up with a number that's too low. In other words, you can run the risk of having the IRS deny your Offer in Compromise agreement amount if it's too low. Therefore, working with a tax relief professional can help you get the best deal.
Another tax relief service is penalty abatement. In this case, you can get the IRS to release the penalties you have on your tax debt. However, it's important to note that a penalty abatement will not totally reduce your tax debt. In other words, you will still owe taxes with a penalty abatement. However, it's a tax relief program that can greatly reduce your overall tax debt.
Tax Relief for COVID-19 Pandemic
In light of the current COVID-19 pandemic, the federal government has announced several tax relief services. First, taxpayers now have until July 15 to file and pay back their taxes. This date was extended from the original tax deadline of April 15. However, it's not advisable to delay paying or filing taxes. Work with a tax relief specialist to pay back any debt you cannot afford to pay at once. In addition, the federal government has offered a federal stimulus check available to the majority of taxpayers. The stimulus check amount starts at $1,200 and decreases based on your total earnings. Furthermore, the IRS is making it possible to borrow up to $100,000 from your IRA. In addition, the federal government will allow you three years to pay this back. Furthermore, you get three years to pay off tax debt without consequences.
Need Tax Relief Services?
During these uncertain times, tax debt relief services can be of the utmost importance. If you have tax debt that you can't pay back, don't hesitate to call us. We can help you with tax relief options and more. Call FinishLine Tax Solutions for a free consultation at 855-950-2720.