Understanding the IRS Hardship Program: A Lifeline for Taxpayers in Distress (H1)

irs fresh start program

Are you overwhelmed by mounting tax debt due to back taxes and feeling like there is no escape? You are far from alone. Many Americans are burdened by similar financial challenges. Fortunately, there is a glimmer of hope: the IRS Hardship Program, also known as the "Currently Not Collectible" status. This blog post aims to provide a comprehensive understanding of the IRS Hardship Program, its eligibility criteria, and how Finishline Tax Solutions can guide you through this and other tax relief options.

What is the IRS Hardship Program?

The IRS Hardship Program is a federal initiative designed to assist taxpayers who are unable to fulfill their tax obligations due to financial hardship. Under this program, the IRS temporarily ceases its collection activities, allowing you some much-needed breathing room.

Benefits of the IRS Hardship Program

  • Temporary Relief: The program halts IRS collection activities for a designated period, giving you time to improve your financial situation.
  • No Liens or Levies: While under this program, your assets are safe from being seized by the IRS.
  • Flexible Terms: The IRS reviews your status periodically, and the program's terms can be adjusted based on changes in your financial condition.

Who Qualifies for the IRS Hardship Program?

Eligibility for the IRS Hardship Program is determined through a meticulous financial analysis. The IRS evaluates numerous factors such as your income, essential living expenses, and the equity in your assets to ascertain whether paying your tax debt would lead to significant financial hardship.

Key Qualification Criteria

  • Limited Income: Your income barely covers or falls short of essential living expenses.
  • No Asset Liquidity: You have limited ability to liquidate assets without causing financial distress.
  • Financial Documentation: Proof of income, expenses, and assets is required for a comprehensive evaluation.

How to Apply for the IRS Hardship Program

Applying for the IRS Hardship Program involves several steps:

  1. Gather Financial Documents: Compile all relevant financial records, such as bank statements, pay stubs, and bills.
  2. Fill Out IRS Forms: Complete the necessary IRS forms, typically Form 433-A for individuals or Form 433-F for businesses.
  3. Submit Application: Mail the completed forms along with any supporting documentation to the IRS.
  4. Wait for Approval: The IRS will review your application and inform you of their decision, which could take several weeks.

The Complexities of the Application Process

While the application process may seem straightforward, it can be fraught with complexities. A single mistake on your application can result in a denial, adding more stress to an already challenging situation. This is where professional assistance becomes invaluable.

Common Mistakes to Avoid

  • Incomplete Documentation: Missing out on any crucial financial documents can lead to an automatic rejection.
  • Incorrect Information: Providing incorrect or misleading information can not only result in denial but also potential legal consequences.
  • Failure to Follow Up: Once the application is submitted, it is crucial to follow up with the IRS regularly to check the status of your application.

Why Choose Finishline Tax Solutions?

Navigating the maze of tax relief options can be daunting. That is where Finishline Tax Solutions comes into play.

Benefits of Hiring Finishline Tax Solutions

  • Expert Guidance: Our team of tax professionals has years of experience in dealing with the IRS and understands the intricacies of tax laws.
  • Custom Solutions: We offer tailored services to meet your unique financial needs and challenges.
  • Nationwide Reputation: We are trusted by clients across the United States for our exceptional services and successful outcomes.

Customer Experience

"Finishline Tax Solutions turned my life around. Their team was not only professional but also incredibly compassionate. They are the real deal!"
— Sarah M., New York

The Importance of Professional Assistance

While it is possible to navigate the IRS Hardship Program on your own, the process is complex and time-consuming. Professional assistance can provide you with the expertise and peace of mind you need.

Why Professional Help Matters

  • Efficiency: A tax professional can expedite the application process, saving you time and effort.
  • Higher Success Rate: With expert guidance, your chances of approval are significantly higher.
  • Long-term Strategy: A tax professional can help you develop a long-term strategy for managing your tax obligations, beyond just immediate relief.

Takeaways

  • The IRS Hardship Program offers a temporary respite from the burden of tax debt.
  • Qualification is based on a thorough financial analysis conducted by the IRS.
  • Professional assistance from Finishline Tax Solutions can simplify the application process and significantly enhance your chances of approval.

By gaining a thorough understanding of the IRS Hardship Program and other tax relief options, you can take proactive steps towards financial stability. With Finishline Tax Solutions as your ally, you are never alone on this challenging journey. Contact us today to discover how we can help you cross the finish line to financial freedom.

Navigating Tax Debt: Why Hiring a Tax Debt Attorney is Crucial for Finding Relief

Are you struggling with tax debt and feeling overwhelmed by the complexities of the tax system? You're not alone. Many individuals and businesses find themselves in this situation and may not know where to turn for help. That's where a tax debt attorney comes in. Hiring an experienced attorney who specializes in tax debt relief can be crucial in navigating the complicated world of tax law and finding relief from your debt.

In this article, we'll explore why it's important to hire a tax debt attorney, how they can help you find relief, and what to look for when selecting an attorney to represent you. Whether you're dealing with IRS notices, wage garnishments, or liens on your property, a tax debt attorney can provide the guidance and expertise you need to get your finances back on track. So, let's dive in and explore why hiring a tax debt attorney is crucial for finding relief.

Understanding tax debt and the consequences of not addressing it

Tax debt can be a significant burden for individuals and businesses alike. It can arise from a variety of sources, including failure to file tax returns, underreporting income, or claiming incorrect deductions. If left unaddressed, tax debt can quickly spiral out of control, leading to serious consequences such as wage garnishments, property liens, and even legal action. It's essential to understand the scope of your tax debt and the potential consequences of not addressing it. The first step in resolving tax debt is to determine how much you owe. This can be a daunting task, especially if you've fallen behind on multiple years of tax returns. However, it's essential to take a comprehensive approach and gather all necessary documentation to accurately assess your tax liability. Once you have a clear understanding of your debt, you can begin to explore your options for relief.

What is a tax debt attorney and how can they help?

A tax debt attorney is a legal professional who specializes in helping individuals and businesses resolve tax debt issues. They have in-depth knowledge of tax law and can provide guidance and representation throughout the debt relief process. A tax debt attorney can help you navigate the complicated world of tax law, communicate with the IRS on your behalf, and develop a customized plan to address your specific tax debt issues. One of the primary benefits of hiring a tax debt attorney is their ability to provide legal representation in the event of legal action by the IRS or other tax agencies. They can negotiate with the IRS to reduce your tax liability, remove penalties and interest, and develop an affordable payment plan. Additionally, a tax debt attorney can help you navigate complex tax codes, identify potential deductions, and minimize your tax liability.

The benefits of hiring a tax debt attorney

Hiring a tax debt attorney offers numerous benefits for individuals and businesses struggling with tax debt. Here are a few of the most significant advantages:

Legal representation

Tax debt can quickly escalate to legal action by the IRS or other tax agencies. Hiring a tax debt attorney offers the peace of mind of knowing that you have legal representation if legal action becomes necessary.

Expertise and guidance

Tax debt attorneys have in-depth knowledge of tax law and can provide guidance and advice throughout the debt relief process. They can help you understand your options for relief and develop a customized plan to address your specific tax debt issues.

Communication with the IRS

Dealing with the IRS can be intimidating and overwhelming. A tax debt attorney can communicate with the IRS on your behalf and ensure that your rights are protected throughout the process.

Reduced tax liability

One of the primary goals of a tax debt attorney is to reduce your tax liability. They can negotiate with the IRS to reduce penalties and interest and develop an affordable payment plan that meets your needs.

Minimized risk

Working with a tax debt attorney minimizes the risk of making mistakes that could lead to further tax debt issues. They can help you navigate complex tax codes and identify potential deductions, minimizing your tax liability and reducing the risk of future tax debt.

How to find the right tax debt attorney for your needs

Finding the right tax debt attorney is essential to ensuring that you receive the guidance and representation you need to address your tax debt issues. Here are a few tips for finding the right attorney for your needs:

Look for experience

Tax debt issues can be complex and require in-depth knowledge of tax law. Look for an attorney with experience in tax debt relief and a track record of success in helping clients resolve tax debt issues.

Check credentials

Make sure that the attorney you choose is licensed to practice law in your state and has the necessary credentials and certifications to represent you in tax debt relief cases.

Read reviews

Check online reviews and testimonials from previous clients to get a sense of the attorney's reputation and success rate in resolving tax debt issues.

Schedule a consultation

Schedule a consultation with potential attorneys to discuss your tax debt issues and get a sense of their approach and expertise.

The process of working with a tax debt attorney

Working with a tax debt attorney typically involves several steps, including:

Assessment

The attorney will assess your tax debt issues and determine the best course of action for resolving them.

Communication with the IRS

The attorney will communicate with the IRS on your behalf and negotiate a resolution to your tax debt issues.

Customized plan

The attorney will develop a customized plan to address your specific tax debt issues, including negotiating a reduced tax liability and developing an affordable payment plan.

Legal representation

If legal action becomes necessary, the attorney will provide legal representation and ensure that your rights are protected throughout the process.

Common tax debt relief options and how a tax debt attorney can help you navigate them

There are several common tax debt relief options that a tax debt attorney can help you navigate, including:

Offer in compromise

An offer in compromise is a settlement agreement with the IRS to pay less than the full amount of tax debt owed. A tax debt attorney can negotiate with the IRS on your behalf to develop an offer in compromise that meets your needs.

Installment agreement

An installment agreement allows you to pay off your tax debt in monthly installments over an extended period. A tax debt attorney can negotiate an installment agreement that is affordable and meets your needs.

Currently not collectible

If you are unable to pay your tax debt due to financial hardship, a tax debt attorney can negotiate with the IRS to temporarily suspend collection efforts.

Bankruptcy

In some cases, bankruptcy may be an option for resolving tax debt issues. A tax debt attorney can provide guidance and representation throughout the bankruptcy process.

What to expect during the tax debt relief process

The tax debt relief process can be lengthy and complex, but working with a tax debt attorney can help streamline the process and ensure a successful outcome. Here's what to expect during the tax debt relief process:

Assessment

The attorney will assess your tax debt issues and determine the best course of action for resolving them.

Communication with the IRS

The attorney will communicate with the IRS on your behalf and negotiate a resolution to your tax debt issues.

Customized plan

The attorney will develop a customized plan to address your specific tax debt issues, including negotiating a reduced tax liability and developing an affordable payment plan.

Implementation

Once a plan has been developed, the attorney will work with you to implement it, ensuring that all necessary paperwork is filed and deadlines are met.

Ongoing support

A tax debt attorney can provide ongoing support throughout the tax debt relief process, ensuring that your rights are protected and that you are on track to achieving a successful outcome.

Tips for avoiding tax debt in the future

While working with a tax debt attorney can help resolve existing tax debt issues, it's essential to take steps to avoid tax debt in the future. Here are a few tips for avoiding tax debt:

Stay organized

Keeping accurate records of your income and expenses can help you stay on top of your tax obligations and avoid tax debt.

File on time

Filing your tax returns on time can help you avoid penalties and interest that can quickly escalate your tax debt.

Seek professional help

Working with a tax professional, such as an accountant or tax preparer, can help ensure that you are meeting your tax obligations and avoiding tax debt.

Conclusion: Why hiring a tax debt attorney is crucial for finding relief and taking control of your financial future.

Tax debt can be a significant burden for individuals and businesses, but working with a tax debt attorney can provide the guidance and expertise you need to find relief and take control of your financial future. From negotiating a reduced tax liability to developing an affordable payment plan, a tax debt attorney can help you navigate the complicated world of tax law and achieve a successful outcome. So if you're struggling with tax debt, don't wait – contact a tax debt attorney today to start finding relief.

At Finishline Tax Solutions, our team of debt relief attorneys have helps thousands of individuals find relief and take control of their financial future. Contact us today for a consultation

Benefits of Working with a Tax Debt Attorney

Filing Back Taxes

Trying to resolve a tax issue with the IRS can require a level of skill that you may not have. Owing tax to the federal tax administrator is not a joke, as you can potentially face penalties for any outstanding tax liabilities you have.

The Internal Revenue Code has many complex rules that can be hard to follow when trying to resolve a tax issue. Our tax debt attorney at FinishLine Tax Solutions can assist you in settling what you owe the government. Some of the common benefits of working with our lawyers include the following:

Tax Code Knowledge

The tax laws on state and federal levels are always changing. Rather than living in despair, our lawyers can research and apply the laws that affect your tax problem.

Protection from Intimidation

Some IRS agents may be unprofessional and might even use intimidating tactics on you. Our tax dent lawyers can act as a representative for your case to protect you against abuse.

Peace Of Mind

The bureaucracy that comes from dealing with a government agency can be overwhelming. Instead of needing to go at it alone, we can help you get your affairs in order.

Can I Settle IRS Tax Debt Myself or Work With a Tax Debt Attorney?

If you owe the IRS taxes, there are multiple ways you can settle your tax obligations to the federal agency. One of these ways is to settle your debts directly with the agency. We recommend getting assistance from a lawyer familiar with the payment processes to negotiate a suitable payment plan for you.

When Should I Hire a Tax Debt Attorney?

While you can solve most problems without a lawyer, it is advisable to get the services of a tax debt attorney if you have a complex tax situation. Owing a significant sum to the IRS or facing legal charges will require you to get the services of an attorney. Some of the other common reasons to hire a tax attorney can include the following:

  • You have a large estate and want it to be passed to your loved ones without the IRS taking a large portion of it as taxes.
  • Disputing a tax billing by the IRS and avoiding one in the future.
  • Making a big business decision or investment.
  • If you have past unfilled taxes and errors amounting to an overwhelming debt.

How to Settle the IRS Tax Debt?

Owing the IRS is not a good idea as the government will eventually catch on and slap you with an enormous bill plus interests. Fortunately, the IRS often deals with those who can show they were not trying to cheat the government. The IRS offers the following payment plans to settle your debts:

Offer in Compromise

This is one of the most popular methods of settling tax debts as you can pay the IRS a reduction than what you owe in taxes. To qualify for the payment plan, you have to prove to the IRS that you are not in a position to pay the full debt amount. If the agency accepts the compromise agreement, you will have two years to settle your debts in full or in installments.

Filing For Bankruptcy

Banking can help you eliminate all your tax debt without paying them, but it can hurt your credit score. To be eligible for a financial lifeline, your finances must be examined through the bankruptcy codes of Chapters 7 and 13.  

Currently Not Collectable

This is a temporary state that the IRS will allow if you can prove that you are not in a position to pay your taxes. You show that your previous tax payment made you suffer significant hardship to be eligible.

Installment Plan

Similar to a home mortgage payment plan, this method allows you to pay the IRS every month what you owe in your dent. The IRS will develop a formula to generate a monthly figure you must pay.

Contact a Tax Debt Attorney Today

We believe you can achieve as much value on your tax debt problem though working on our firm’s model. Our attorneys will review all available payment plans and strategize what works better for you. Contact us today for a case evaluation and tax legal advice.

What You Need to Know Before you Hire a Tax Debt Relief Expert

tax debt relief programs

Hiring a tax debt relief expert is the best way to deal with the IRS and identify a suitable installment payment program. Since many companies offer debt relief services, it may be tough to pick the right expert.

Researching beforehand and understanding the role of tax relief companies or professionals can guide you in the selection process. It also prevents losing your money to scams and incurring significant debt.

Are you wondering about the things you should know before hiring an expert to help you deal with back taxes? Read on for factors to consider before selecting a tax resolution professional.

If the Expert Has a License

One key factor to consider before hiring a tax debt relief expert is if they have a license. A suitable professional should be an IRS Enrolled Agent. This certification means they have the authority to represent taxpayers to the IRS.

While Enrolled Agents have the highest certification to deal with tax debt, you can consult other licensed professionals. For instance, you may work with CPAs and tax attorneys to assess the delinquent taxes you owe. Such professionals can also help you negotiate a fair repayment plan.

The Experience the Tax Debt Relief Expert Has

A tax professional with extensive experience in dealing with the IRS is more likely to help you navigate debt. Before hiring a particular expert, determine the years they represented taxpayers. After that, evaluate if they handled similar cases in the past.

Working with a tax expert with more experience can give you peace of mind. Besides, the professional may help you avoid significant penalties by assessing your case quickly and applying for a suitable relief program.

The Cost of Their Services

Tax debt relief experts charge clients varying amounts based on the nature of the case and the needed work hours.

Before picking a specific professional, evaluate your options by requesting consultations. The specialists can provide a cost estimate by assessing the time and resources required for the case.

Knowing how much a tax debt relief expert will charge for their tax debt relief services can help you weigh your options. Additionally, you will avoid exorbitant rates that may further affect your financial situation.

The Success Rate of Their Cases

Hiring a tax debt relief expert does not guarantee desirable results. Still, a suitable professional should have more wins than losses.

Opting for a high success rate specialist can give you confidence since they will exhaust all legal methods when negotiating with the IRS. Such an expert will also assess your case critically to ensure they only apply for the proper debt relief programs.

The Availability of the Tax Professional

Tax resolution may involve regular communication with the IRS. You may also need to attend negotiations and other sessions like IRS financial audits.

Before hiring a tax expert, determine their availability for such meetings. An expert with an organized work schedule will effectively handle your case to prevent postponing. They will also help you avoid penalties and fines by ensuring you respond to notice letters before the deadlines.

The Services the Tax Debt Expert Offers

When dealing with tax debt, you may need other services like filing back taxes and audit representation. Before hiring a resolution expert, determine if they offer all the required services.

This way, you can avoid consulting several companies and wasting resources. Working with one specialist will also streamline debt resolution and lower stress.

Hire a Debt Relief Expert From FinishLine Tax Solutions

Considering the discussed factors before hiring a resolution expert can ensure you get quality services. At FinishLine Tax Solutions, we have a team of enrolled agents, attorneys, and CPAs to help you deal with the IRS. All our specialists have a license and understand tax laws comprehensively. Contact FinishLine Tax Solutions today to learn more about our services and charges.

Dealing With Tax Debt: How to Set Things Right With the IRS

Dealing With Tax Debt: How to Set Things Right With the IRS

Remitting all the taxes you owe can be challenging, especially when facing financial problems. If you owe the IRS, it is vital to act promptly to avoid penalties and significant debt. This step can also prevent tax liens and stop the IRS from using harsh debt collection measures like seizing your assets.

Are you wondering about the best ways to deal with tax debt and protect your finances? Read on for tips on setting things right with the IRS and the benefits of working with a professional if you have delinquent taxes.

1. Ask for a Deadline Extension

Sometimes, you may fail to remit taxes due to delays. For example, you might be waiting for an investment to mature and use the funds to pay what you owe.

If you will likely get the funds to clear tax debt soon, it is advisable to ask for a deadline extension. While the IRS will not charge any fees for the process, they will impose a 0.5% monthly penalty on balance.

Requesting a short deadline extension will help you avoid paying fees associated with other tax relief programs. Besides, it gives you more time to get your finances in order and repay the total amount.

2. Apply for Installment Payment

If you cannot pay the taxes you owe in full, you should apply for debt relief. The IRS provides an installment agreement program to help taxpayers pay the amount they owe over an extended period.

Still, you must meet the eligibility criteria, including filing back taxes. Besides, your debt should be less than $50,000 but more than $10,00, including fines and penalties.

When the IRS accepts your application, they will require you to send a given amount each month for an agreed period. For example, if you choose a short-term installment plan, you will clear the debt within 120 days. On the other hand, the IRS will require you to pay delinquent taxes within 72 months with a long-term plan.

Enrolling in an IRS installment agreement program will help you avoid accruing penalties and fines. Further, you get more time to organize your finances and pay the debt without worrying about collection measures.

3. Do Not Ignore the Matter

While you may not be in a financial position to pay taxes, ignoring the issue will only worsen it. File your returns on time to avoid penalties associated with failing to submit your forms. Further, determine the most suitable repayment program and send your application within the deadline provided by the IRS.

If the IRS sends a notice or contacts you regarding tax debt, you should respond promptly. This measure will help you set things right and avoid consequences like:

  • Property seizure
  • Ruined creditworthiness
  • Imprisonment
  • Bank levies
  • Wage garnishment

4. Contact a Tax Resolution Expert

Dealing with tax debt may be confusing without professional help. Set things right with the IRS by consulting a resolution expert near you. These will assess your situation and determine the best way to deal with accrued debt. Besides, they can identify the most suitable tax debt relief program and help you apply.

Another way a tax resolution professional may assist is by filing back taxes and determining the total amount you owe. They will then develop a tax relief plan and meet with IRS officials on your behalf.

If the IRS seized assets and imposed a bank or property lien, you cannot use the funds to finance debt. A tax resolution professional will help you negotiate a lien release. Further, they will ensure you only apply for a debt relief program that will not cause more financial challenges.

Contact FinishLine Tax Solutions to Set Things Right With IRS

Setting things right with the IRS can protect your reputation and lessen financial problems. At FinishLine Tax solutions, we will help you deal with debt using an ideal repayment plan. Our professionals can also determine the debt relief plan you qualify for and present the required forms. Contact us now to lower the effects of unpaid taxes.

Owe the IRS $10K+?: See if you qualify for IRS Tax Forgiveness Program

Owe The IRS 10k See If You Qualify For IRS Tax Forgiveness Program

Your debt may increase rapidly due to penalties and fines when you owe delinquent taxes. The IRS can also take measures like imposing tax liens on your property, requesting a financial audit, or freezing your assets to recover the amount due.

Applying to a tax forgiveness program allows you to repay your debt over a specified duration. Here, we discuss some options you can use to repay your debt if you owe $10,000 or more and their eligibility criteria.

A Short Term Installment Agreement

One option you can use to clear a $10k+ IRS debt is a short-term installment plan. This agreement allows you to pay the debt within 180 days or less. For you to qualify for a short-term installment plan, your debt must be less than $100,000, including penalties, interests, and fines.

A Long-Term Installment Agreement

A long-term installment agreement is suitable if your total debt is less than $50,000. When you qualify for this IRS Fresh start program, you must repay what you owe within 72 months. In most cases, the installments you remit each month will depend on your debt amount and financial capability.

Offer in Compromise

An offer in compromise (OIC) is an IRS tax debt relief program that allows you to repay a lower amount. To qualify for this plan, you must file past returns and deposit the estimated tax requirement for the current year. If you are a business owner, the IRS will also require you to make all federal tax deposits.

Once you qualify for an offer in compromise, the IRS will determine the amount you can pay based on your financial situation. They will then require you to make specific monthly deposits to clear your debt.

Another IRS tax resolution option under the offer in compromise program is lump sum cash. This plan involves making a 20% deposit of the offer amount when sending your OIC application. If the IRS accepts your request, you will clear the remaining balance in five or fewer installments.

Currently Not Collectible (CNC)

Financial hardships can make it tough to clear your tax debt. Luckily, the IRS provides a currently not collectible plan to stop collection measures until your situation changes.

Before you qualify for this plan, you must prove that paying the debt will cause significant financial hardships. The IRS will then conduct period reviews to assess your situation and require you to start installment payment if your status improves.

Penalty Abatement

Penalty abatement is an IRS tax debt relief program involving a penalty reduction or removal. When applying for this plan, you must provide a reasonable cause for failing to meet your tax obligations. Some aspects that will qualify you for a penalty abatement are:

  • A natural disaster that destroyed vital personal documents
  • Severe illness or death of your immediate family
  • Inability to get records needed for tax preparation

How to Apply to the IRS Fresh Start Program

The forms needed when applying to a Fresh Start program will depend on the selected repayment plan. Consult a tax resolution expert to determine the most suitable option depending on your debt and ability to pay. After that, gather the needed documents and submit them alongside your IRS tax debt relief application.

You may need to deposit a certain fee when sending a Fresh Start application. A tax resolution expert will help you determine the charges for each program. They can also recommend applying online or via mail based on your preferences.

Determine If You Qualify for a Tax Forgiveness Program

Navigating IRS tax resolution can be challenging without help. At Finishline Tax Solutions, we have a team of CPAs and attorneys who can help you determine eligibility for the Fresh start program. They will then file your taxes and ensure you apply for an appropriate repayment plan. Call us today to schedule a consultation.

Payroll Tax Debt Relief

Tax Resolution

The IRS requires employers to deduct a part of employees' wages as payroll taxes and contribute an equal amount. Failing to remit all the withheld money within the given deadline can land you and your company's finance department in trouble. 

In most cases, the IRS will impose accruing penalties and tax lien. If declared guilty, the party liable for failing to remit collected amounts may also serve jail time or pay hefty fines. 

It is crucial to clear the payroll tax you owe to avoid such issues. Here, we discuss how you can use various relief programs to repay the IRS and prevent business closure.

Dealing With Payroll Tax Debt

Once the IRS realizes that your business owes payroll taxes, they will assign your case to a revenue officer. This expert will then contact you by sending a notice requesting compliance with tax filing. In the document, they will indicate the reason for reaching out and the amount that you owe. They will also state the fines imposed and the likely consequences of failing to repay. 

When you receive such a communication, it is essential to ensure that the details indicated are correct. Confirm that the amount due is the right one by comparing the document against your tax forms.

After that, respond to the revenue officer to acknowledge receipt of the notice. This measure will indicate cooperation and the willingness to clear your debt. If you cannot repay the amount due in full, contact a tax resolution expert to help you set up a payroll debt relief plan.

Negotiating Payroll Tax Debt Relief With the IRS

The IRS allows employers and business owners to negotiate payroll tax debt. In most cases, the agreed repayment method differs depending on the nature of the liability. It may also vary based on the party liable for not remitting the taxes.

One relief option the IRS provides is an installment payment agreement. This mainly involves clearing the total amount owed, including penalties, within a given period.  During this time, the IRS will still impose penalties on due taxes and any late payment.

You must file all taxes for previous years and pay a processing fee to qualify for installment agreements. Besides, you should pick an appropriate plan depending on the amount owed and your ability to pay. Some of the options to consider are streamlined installment agreement and in-business trust fund.

If your business is still running, the IRS will only allow you to repay using an in-business trust fund. With this program, you can clear debts equal to or less than $25,000. Still, you must repay the total amount within 24 months or the provided collection statute expiration date (CSED).

On the other hand, if the IRS closed down your business due to debt, you can enter a streamlined installment agreement. This program will help you clear debt equal to or less than $25,000 within six years. Once your business qualifies for this plan, the IRS will not file a tax lien.

Benefits of Hiring an Expert for Payroll Tax Debt Resolution

When owing the IRS, it is crucial to consult a tax attorney before seeking debt relief. This can help you determine the best way to resolve the issue while considering your company's goal. They will also guide you in selecting a relief program that will not lead to significant financial straining.

Another benefit of consulting an expert is they can identify when your business is at risk of closure. This way, you can take precautions to avoid it and negotiate for favorable repayment terms.

Contact Tax Industry for Debt Relief

Working with a tax resolution expert allows your company to avoid the consequences of payroll tax debt. At Tax Industry, we have a team of experienced lawyers and CPAs to help you deal with the IRS. With their skills, you can negotiate for installment payments to prevent business closure and lawsuits. Contact us today to enroll for payroll tax debt relief.

Everything You Need to Know About the IRS One Time Forgiveness Program

IRS One Time Forgiveness Program - Everything You Need to Know

When you owe the Internal Revenue Service (IRS), you may wonder whether there is a way to avoid accumulating penalties and fines. Besides that, you may want to invest but fear that your tax lien will damage your financial credibility.

Luckily, the IRS offers a One Time Forgiveness program to help people deal with tax liability. Using this initiative, you can evade the negative consequences of owing taxes. You may also get enough time to organize your finances and repay the debt without causing significant financial problems.

Read on to discover several things you need to know about the One Time Forgiveness program. We will also explain how you can determine the most suitable tax relief program based on your needs and financial status.

How Many Options Does the One Time Forgiveness Program Have?

The IRS offers several options under the IRS One Time Forgiveness program. These include Innocent Spouse Relief, Installment Agreements, and Currently Not Collectible. Innocent Spouse Relief allows you to avoid paying penalties, taxes, and interests if your current or former spouse provided wrong information when filing back taxes.

For instance, if they did not disclose some of their income sources, which led to a penalty, you may apply for relief. This initiative is applicable if the IRS can only collect the amount due from the spouse. Besides that, you can only qualify if:

  • The penalties are from self-employment taxes
  • You can prove you did not know about the inaccuracy
  • You and your spouse have not transferred money in a fraudulent scheme

Sometimes, your financial situation may make it very challenging to pay the taxes you owe. In such a case, you may apply for a Currently Not Collectible status. In case you qualify, the IRS will stop penalizing your debt and refrain from collection activities.

An Installment Agreement is a tax forgiveness program that allows you to repay your debts with a schedule. If you cannot remit the entire amount due to various issues and owe a debt of less than $50,000, you may benefit from the initiative.

Offer in Compromise (OIC) Tax Relief Option

OIC is a One Time Forgiveness relief program that is rarely offered compared to the other options. This initiative is an ideal choice if you can afford to repay some of your debt in a lump sum. Once you qualify, the IRS will forgive a significant portion of the total taxes and penalties due.

They will then provide a payment schedule allowing you to clear the remaining amount in installments. The payment period is usually a maximum of 72 months, whereby the IRS will require you to remit a specific figure without fail or delay for the entire period.

How Does One Time Forgiveness Work?

The One Time Forgiveness program you qualify for will mainly depend on your financial situation. However, determining the most suitable option may be challenging without professional help. It is advisable to consult with a tax resolution expert before applying for any relief program. By taking this step, you enhance the chances of qualifying and ensure you provide the IRS with correct information.

Once you apply for IRS One Time Forgiveness program, the IRS will assess your situation and evaluate eligibility. If they accept the application, they will provide a detailed repayment schedule.

Depending on the program you chose, you may send the amended debt in installments or lump sum. The IRS will also require you to remit all your taxes within the stipulated time moving forward. Other than that, they may perform periodic assessments on your financial status as needed.

Contact Tax Industry to Apply for Debt Relief

Each option in the IRS One Time Forgiveness program has several qualifications you must meet to be eligible. Unfortunately, gathering all the details you need to apply for this initiative may be frustrating if you do not have extensive knowledge about taxation.

At Tax Industry, we offer professional tax resolution services to help you deal with debt. Our experts can assess your situation to help you apply for the most suitable One Time Forgiveness option. Reach out to us today for reliable tax debt relief services. Due to the complex US tax systems, you may still have some questions about liability and relief programs. At Tax Industry, we have a team of experts specialized in resolution services.  With their help, you can debunk common tax myths and understand how to avoid getting into trouble with the IRS. They can also guide you in applying for relief programs to clear your debt and prevent consequences like wage garnishment. Reach out to us today to consult a tax expert.

Frequently Asked Questions About One Time Forgiveness Program

 

1. Does the IRS Have a Tax Forgiveness Program?

When owing the IRS, you are likely to wonder if it offers a tax forgiveness program. The short answer is yes, but it is important to note that having a debt is not a guarantee that you qualify for forgiveness. Before requesting tax relief, you should understand the options available. This way, you can determine which one you qualify for and know how to apply. The tax forgiveness programs offered by the IRS are an offer in compromise (OIC), innocent spouse relief, currently not collectible (CNC), and installment agreements. Each of these categories has specific requirements for eligibility. Consulting a tax professional is the best way to check if you qualify and increase the chances of the IRS considering your application.

2. When Can You Use IRS One Time Forgiveness?

If you cannot pay tax penalties due to circumstances beyond your control, you might qualify for IRS one-time forgiveness. One type of this debt relief program is a reasonable cause, available to those unable to meet their obligations due to health issues or an act of God like floods or fires. First-time penalty abatement is another one-time forgiveness program that allows the IRS to waive all fines and penalties you owe. The qualification requirements are:

  • No tax debts for the last three years
  • Filing all returns in time
  • Making prior arrangements to pay outstanding taxes

The final type of one-time forgiveness is a statutory exception. This relief program only applies if the IRS sends you an incorrect invoice after a tax debt caused by advice provided by their officials.

3. How Much Does the IRS Usually Settle For?

The value the IRS settles for will depend on the amount of debt. It also varies according to the type of tax relief program you use for repayment. For instance, if you select and qualify for an offer in compromise, you first need to pay a lump sum equal to 20% of your debt.

On the other hand, after an installment agreement, the IRS will ask how much you can afford to pay each month.  They may also request you to remit a specific amount monthly by dividing

4 . How Do I Ask for Forgiveness From the IRS?

When planning to settle your tax debt, you can call the IRS to talk to their personnel. Another option is to mail them a tax relief program application alongside the needed supporting documents. Since you must prove eligibility when requesting IRS one time tax forgiveness, it is always advisable to get professional help. With the guidance of a liability expert, you can file all past returns and submit the proper documents. Besides, it will be easier to negotiate favorable repayment terms.

5. Does IRS Forgive Debt After 10 Years?

The IRS can forgive debts that exceed ten years under certain circumstances. However, it is important to note that you may not qualify if you keep failing to pay your debt for subsequent years. This forgiveness duration can also be longer if you sign agreements and waivers that allow the IRS to extend it.

 

Top 5 Best IRS Tax Relief Programs You Need to Know About for 2021

Top 5 Best IRS Tax Relief Programs You Need to Know About for 2021 - FLTS

Have you finished preparing your tax returns and found that you still owe some taxes that you didn’t know about? No need to panic.

It isn’t uncommon to find that you have some outstanding taxes when you prepare your tax returns. Luckily, the IRS offers several tax relief options to assist taxpayers to meet their obligations in a way that doesn’t cripple their financial health. Instead of ignoring your tax bill, take advantage of these legal tax relief programs to gain some reprieve and pay with a plan that suits your financial ability. 

Installment Agreements

Installment Agreements are the most common tax relief method for taxpayers who cannot clear their debt in full. It is available to taxpayers whose total tax liability (tax, interest and penalty) does not exceed $50,000. 

The IRS can allow you to repay the outstanding taxes in small installments for a maximum of 72 months. Note, however, that any interests and penalties will continue to accumulate on the outstanding debt, therefore you should try to shorten the repayment period

Innocent Spouse Relief

Through Innocent Spouse Relief, the IRS allows innocent spouses to avoid tax, interest and penalties that arise from a current or former spouse’s tax delinquency (underreporting, fraud, or nonpayment). 

Innocent Spouse Relief can only be requested when filing individual or self-employment tax returns. However, there are tax liabilities that are ineligible for cancellation under this program, such as business taxes, trust fund recovery penalties, Individual Shared Responsibility payments, and Household Employment taxes.

Offer in Compromise (OIC)

The Offer in Compromise is a tax relief option where a taxpayer pays less than the amount that they owe. Usually, the IRS will accept an Offer In Compromise when they assess the applicant’s tax liability and their present and future (potential) income earning capacity.  

To qualify for OIC, you should make the application to the IRS explaining their circumstances and give them your best offer to settle the debt. The IRS only accepts about 25 of all applications, which is why it is critical to use a qualified tax relief professional when making your application. 

If you succeed, you should pay your offer amount in five instalments or less. You may be able to appeal the decision if your OIC application is rejected. 

Advance Child Tax Credit (ACTC)

This is a tax relief program that the IRS offers to families. Many families will receive Advance Child Tax Credit payments up to 50 percent of the estimated ACTC amount (according to their 2019/2020 tax returns). 

Once the IRS processes your 2020 returns, you will receive 50 percent of this credit and from July to December 2021. The remaining half will be paid once your file your 2021 returns. You can learn more about this tax relief program by clicking here.

ACTC payments from the IRS will be paid by direct deposits to make the money easily accessible to the beneficiaries. You should ensure that you provide your correct banking information. Otherwise, the IRS will send checks in the mail beginning July 15 and every 15th of the month after that. 

The Coronavirus Economic Impact Payments

The IRS is also sending out the third round of Economic Impact Payment to the eligible individuals. Some people have already received their payments, but if you haven’t, it doesn’t mean you won’t get it. 

Additionally, the IRS is offering a 2020 Recovery Rebate Credit for those who didn’t get their first or second Economic Impact Payment or those who got less than the full amount. Those who are eligible to receive the payment but don’t usually fill tax returns can use the Non-Filer Sign-Up tool to register. 

Get Help for All Your Tax Concerns

Do you need help filing your 2020 tax returns? Contact our professionals at Finishline Tax Solutions for tailored solutions according to your needs. 

Have an outstanding tax liability? Contact us and let’s help to determine the tax relief program that works best for your needs. 

Finding the Best Tax Debt Relief Solution

Finding the Best Tax Debt Relief Solution - FinishLine Tax Solutions

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 debt 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

IRS 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 debt specialist can help you to assess according to your particular circumstances.