The Ultimate Tax Help Guide: Comprehensive Resource for Tax Debt Questions

 

Dealing with tax debt can be complicated since the IRS has different policies for each situation. As a result, you may need more information regarding dealing with tax debt and avoiding collection measures. Here, we help you understand various tax debt topics by answering some frequently asked questions (FAQs).

IRS Debt Forgiveness

Paying tax debt in a single transaction can be challenging and affect your financial situation. If you are looking for an effective way to avoid penalties accumulation and financial strain, consider IRS debt forgiveness. Some common questions on the topic are:

Does the IRS Really Forgive Tax Debt?

The IRS can forgive tax debt under certain circumstances. For example, if you cannot pay the penalties and amount you owe due to severe financial challenges, the IRS may waive the debt.

However, they will only write the debt off if it exceeds ten years from when they conducted an assessment.

How Do I Get My Tax Debt Forgiven?

The IRS rarely forgives the total debt amount unless they enact the 10-year rule. Applying for a tax forgiveness program is the best way to get the IRS to write off some debt.

A plan such as an Offer in Compromise will allow you to repay an amount lower than the total debt. It also stops the IRS from seizing your assets or freezing your accounts

Does IRS Forgive Tax Debt After 10 Years?

Yes. The IRS can forgive tax debt that exceeds ten years if you cannot pay. This duration may extend since they will count from the last date of your tax assessment. Besides, some agreements, such as an installment payment, may include signing a waiver that allows the IRS to extend the duration.

Who Qualifies for One-Time Forgiveness?

Taxpayers who do not have recent debt or tax filing mistakes can qualify for the one-time forgiveness program. The IRS will check if you correctly filed your returns when you apply for this plan. They will also confirm if they charged penalties and fines for the previous filing period.

If you meet such requirements, the IRS will use other eligibility criteria to determine if you qualify for one-time forgiveness. Some aspects that may make you eligible are:

  • Failing to meet your tax responsibility due to factors beyond your control
  • Making tax mistakes due to advice offered by IRS officials
  • Filing and paying returns correctly for the last three years

How Likely Is the IRS to Accept an Offer in Compromise?

The IRS rarely accepts Offer in Compromise applications. You will only qualify for this program if there is a dispute regarding the tax debt based on the law. You may also be eligible if there is no doubt of liability, but the IRS is not sure they may recover the total amount you owe.

The last aspect that may qualify you for an OIC is if requiring you to repay the entire debt will lead to further economic hardship.

What Is the IRS Hardship Program?

The IRS hardship program is a plan to help taxpayers facing extreme financial problems. You will be eligible if you cannot meet basic living expenses after paying your tax debt.

If you qualify for this plan, the IRS will require you to remit a given amount each month and stop collection measures

Does the IRS Have an Amnesty Program?

Yes. The IRS has amnesty programs to forgive non-willful taxpayers. If you qualify for such a plan, the IRS may reduce or remove all penalties imposed on your tax debt. Still, you must repay all delinquent taxes related to the domestic or foreign income you did not report.

What is IRS Fresh Start Program?

The IRS Fresh Start program refers to several options offered by the IRS to enable taxpayers to clear their debts conveniently. These include:

  • An Offer in Compromise
  • An installment agreement
  • Penalty abatement
  • Currently not collectible

Each plan under the IRS Fresh start program has its eligibility requirements. Hence, you should always learn more about them and consult an expert to identify the most suitable option.

Dealing With the IRS

If you owe the IRS, you may have to email them and provide various documents. You may also need to meet with the officials to assess your tax documents and determine eligibility for relief programs. Here are some inquiries you may have on dealing with the IRS.

What Should You Do if You Owe the IRS a Lot of Money?

 If you owe the IRS a lot of money, you should set up a payment agreement. Such will help you repay the debt slowly based on your financial situation. It also protects your properties and prevents debt accumulation.

Another way to deal with significant IRS debt is by requesting a short deadline extension. This step will be suitable if you can pay but must wait for a transaction to mature.

Can I Negotiate With the IRS on Back Taxes?

Yes. You can negotiate with the IRS for favorable payment terms on your back taxes. However, you should reach out to them before the deadline provided in a notice letter.

 Further, prepare all the documents and information you need for the meeting. It is also vital to understand the benefits and requirements of each debt relief program.

Can I Negotiate With the IRS Without a Lawyer?

You may negotiate payment terms with the IRS without a lawyer. However, consulting an attorney can help you settle for the most suitable tax relief option. Besides, it ensures you present all the information the IRS may need for specific programs.

Are Tax Attorneys Worth It?

Yes. Tax attorneys understand all IRS policies and state laws. Besides, they know the criteria the IRS uses to determine if an applicant is eligible for a specific tax relief plan. With their assistance, you may qualify for better repayment deals and save money.

IRS Audit Representation

An IRS audit involves reviewing your tax documents to determine if you provided the correct information. This process is often stressful for many, especially if you are unsure about the issues that triggered it.

Do You Need Representation for IRS Audit?

It is not compulsory to get legal representation during an IRS audit. However, consulting a lawyer or CPA agent can simplify the process and improve outcomes in various ways.

For example, the tax professional will organize the needed document before the audit date. Further, they will handle all communications with the IRS so you can focus on your life or business.

What Happens if I Miss the Mail Audit Response Deadline?

If you do not respond to an audit notice in time, you have 90 days to request the IRS for a reconsideration. Failure to do this will lead to penalties and other tax debt collection measures.

Always respond to the letter mailed by the IRS on time. Further, consult a tax professional to ensure your response contains the needed details.

What Happens if I Ignore an Audit?

Ignoring a tax audit has many adverse effects. For example, the IRS will impose significant penalties and interest on the amount you owe. You may also lose the opportunity to negotiate and appeal payment terms.

What Will Trigger an IRS Audit?

One aspect that may trigger an IRS audit is significant income disparities. The IRS may also request this process if your tax forms have some inconsistencies. More issues that may lead to an IRS audit are:

  • Home office deductions
  • Filing a Schedule C
  • Incomplete tax returns
  • Failure to report all your income

What Should You Not Do in an Audit?

Making some mistakes with the IRS can lead to legal actions and penalties. Avoid submitting false documents or lying to the auditor.

Further, do not make unnecessary remarks since they may land you in trouble and cause the IRS representative to expand the audit. Other mistakes to avoid during an audit are submitting original documents and making rude remarks or responses.

IRS Penalties on Tax Debts

The IRS imposes penalties and fines on the amount you owe. Some common questions regarding this topic are:

What Is the IRS Underpayment Penalty?

The IRS charges an underpayment penalty of 0.5% on underpaid taxes. They will impose this charge each month or part of the month you do not clear the debt. Still, the penalty cannot exceed 25% of the delinquent taxes.

How Do I Get the IRS to Remove Penalties and Interest?

Applying for penalty abatement is the best way to get the IRS to remove interests. You might qualify for this tax debt relief program if you paid all the taxes you owe or set up a payment plan.

The IRS may also approve a penalty abatement application if you requested a deadline extension or did not previously have to file returns.

What if I Owe More Than $10000 in Taxes?

If you owe the IRS more than $10,000 in taxes, they will impose penalties and fines. Avoid such charges by applying for a tax relief program. The IRS offers installment plans which allow you to clear the debt in up to 72 months.

What Happens if You Owe the IRS More Than $25000?

If you owe the IRS more than $25,000 but less than $50,000, you may qualify for the installment agreement program. However, if the debt, including interest, is more than $50,000, you may need to apply for special programs allowing you to pay the amount in 84 months or more.

IRS Tax Debt Collection Measures

The IRS uses various measures to recover delinquent taxes and penalties. Here are some FAQs on the matter.

Can the IRS Take Money From My Bank Account Without Notice?

No. The IRS cannot levy your bank account without sending a notice. This rule allows you to dispute the collection measure if you do not owe the amount indicated in the letter. It also gives you more time to negotiate a repayment plan.

Can IRS Take Your Car?

Levy permits allow the IRS to take and sell your car if you do not actively try to clear your debt. They can also seize other assets such as your property and land.

Can You Collect Social Security if You Owe the IRS Money?

You may collect social security benefits if you owe the IRS. However, if you do not have a repayment plan, they may deduct up to 15% from your monthly cheques until you clear the delinquent taxes.

How Far Back Does the IRS Go For Unfiled Taxes?

The IRS often requires taxpayers to file all the returns for the past six years. Still, they can assess tax deficiency beyond this time in exceptional cases.

What Is the IRS 6-Year Rule?

The IRS 6-year rule allows you to pay living expenses beyond the collection financial standards. If you do not qualify for a streamlined agreement, you can still make a minimum payment for your tax debt, provided you pay the entire amount in 6 years.

Contact FinishLine Tax Solutions for More Information

Getting answers to tax debt questions can help you determine the measures to take if you owe the IRS. It also allows you to leverage relief programs offered by the IRS.

At FinishLine Tax Solutions, we can answer all your questions on delinquent taxes. Our legal team will also represent you during audits and negotiations. Contact us today for an inquiry.

IRS Fresh Start Program : How It Can Help to Get Your Finances Back On Track

Paying taxes you owe to the IRS may be a daunting task when facing financial challenges. Unfortunately, failing to submit the required amount you owe can lead to fines and penalties. The IRS can also freeze your assets and seize your business.

Enrolling in a Fresh Start program allows you to clear your debt and reorganize your finances. Here, we explore avoiding the consequences of back taxes with a debt relief plan. We’ll also mention some of the Fresh Start programs you can consider and the benefits of working with the best tax relief companies.

Getting Your Finances on Track With IRS Fresh Start Program

If you have accumulated tax debt, you can get your finances back on track with the IRS Fresh Start program. The first step to this is determining the most suitable category. Some of the options you can consider are an offer in compromise, an IRS installment agreement, penalty abatement, and currently not collectible.

Once you qualify for relief, the IRS will stop any efforts to collect the debt. For example, they will pause efforts to get a court order for seizing your assets or closing your business. They can also release a tax lien, allowing you to sell your properties.

Another way a IRS Fresh Start program can get your finances back on track is by preventing debt accumulation. The IRS will stop interests from accruing when you enroll in a debt relief plan. They will also pause imposing fines, preventing more financial losses.

How to Apply for IRS Fresh Start Program

The IRS requires everyone applying to a debt relief program to meet various requirements. You must also provide specific documents to boost the chances of consideration. In most cases, these vary depending on the program you are applying for and the amount of debt.

For example, when sending a request to be considered for the Currently Not Collectible plan, you must prove you are facing financial challenges. It’s also necessary to show that repaying the debt will lead to severe straining. Some documents you can use to support your application are your pay slip and receipts of your expenses.

When sending your application to a Fresh Start program, you must remit a direct deposit, depending on the selected category. For example, if you choose an offer in compromise, you must remit a $205 nonrefundable fee. The IRS will also require you to send an initial payment equal to 20% of your debt.

Benefits of Getting Tax Resolution Services When Applying for the Fresh Start Program

Determining the most suitable Fresh start program can be tricky due to several choices. Working with the best tax relief companies allows you to simplify this process in many ways. First, such firms have a team of experts who can help you pick the right program based on your financial situation and debt value.

These can also negotiate with the IRS for a suitable repayment program. More reasons to get professional tax resolution services are:

  • It can help settle your tax debt for a lower amount
  • Tax resolution experts can ensure you submit proper documentation
  • You will get legal representation during audits and case proceedings

Another benefit of working with the best tax relief companies is that it allows you to avoid further penalties and fines. With the help of CPAs, you can quickly file back taxes to avoid debt accumulation. It is also possible to support your Fresh Start application with verified financial documents.

Get Your Finances Back on Track With Reliable Tax Resolution Services

Working with reliable tax resolution companies can help you reorganize your finances. At Tax Industry, we have a pool of CPAs and attorneys who can guide you when applying to the IRS Fresh Start program.

With our help, you can avoid the adverse financial consequences of debt. Reach out to us today to get your finances back on track and apply to a suitable IRS Fresh Start program.

Tax Settlement – Find out if you are eligible

TAX SETTLEMENT – FIND OUT IF YOU ARE ELIGIBLE
Paying all the taxes you owe can be challenging when facing financial problems. Failing to remit the entire amount may then lead to the accumulation of penalties and interest. The IRS can also garnish your wages or freeze your assets to prompt you to pay. Luckily, you can avoid such consequences and repay your debt using a tax settlement. Here, we help you understand how this works and discuss ways to determine eligibility. We also highlight the benefits of tax settlement and explain why it is vital to work with an expert from Tax Industry.

How Does a Tax Settlement Work?

A tax settlement allows you to negotiate favorable debt relief terms. Depending on the amount you owe, the IRS may accept an amount less than the total debt. They can also request installment payments over a specified duration. Since the qualification requirements of each tax settlement option differ, it is always crucial to determine if you qualify before contacting the IRS. Once you pick the debt relief program you want to apply to, submit all needed documents alongside your request. You should also send an application fee, which will depend on the chosen tax settlement option. After receiving your application, the IRS will check if you qualify and provide feedback.  They may then send a settlement offer, including all terms of the agreement and a payment schedule.

Benefits of a Tax Settlement

One significant benefit of tax settlement is that it allows you to prevent costly repercussions. Once you qualify, the IRS will freeze fines and penalties then stop collection efforts. They may also lift a tax lien or discharge it, allowing you to sell properties. Another benefit of tax settlement is that it provides lenient payment terms. Instead of struggling to clear the amount with one deposit, it is possible to repay over several years or months. For example, if you qualify for an installment agreement, the IRS will give you 72 months to clear the debt. Such favorable terms allow you to budget for the required monthly payments and avoid financial straining.

Who Is Eligible for a Tax Settlement?

The IRS has requirements to determine if applicants qualify for a tax settlement offer. While these will differ based on the relief program you select, some aspects are common. First, you should be able to show that repaying your debt in full will cause financial challenges. Besides, you must file all past tax returns before submitting your application. Another qualification requirement is that your debt must be within the maximum limit of the selected relief program. For example, when applying for a Fresh Start program, the amount you owe, including penalties, must be less than $50,000. Since determining eligibility for tax settlement can be challenging, it is advisable to consult a relief expert. With their guidance, you can identify the most suitable program based on your debt and financial situation.

Tax Settlement Services Offered by Tax Industry

Tax Industry provides a wide range of settlement services to help you deal with debt. For example, we have attorneys who can negotiate with the IRS on your behalf or stop a wage garnishment. We also offer tax debt relief services where our liability experts assess your situation and eligibility for various settlement options. More services you can get at Tax Industry are:
  • A federal tax lien release
  • Filing back taxes
  • Audit representation
Working with Tax Industry liability experts is the best way to increase the chances of qualifying for a settlement. Since they understand the requirements for each relief program, they can ensure you provide the needed documentation. They may also help you avoid issues that affect your eligibility for various settlement programs.

Contact Tax Industry to Apply for an IRS Tax Settlement

Tax Industry provides you with all the skills and expertise needed when negotiating with the IRS. With our guidance, you can apply for programs like installment agreement, offer in compromise, or penalty abatement. If you are looking for reliable tax debt relief services, contact us today to consult our experts.

Payroll Tax Debt Relief

Tax Help
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.

5 Important Things to Note About the IRS Fresh Start Program

Paying taxes to the Internal Revenue Service (IRS) may be challenging when facing financial problems. Unfortunately, failing to remit can lead to the accumulation of debt and fines. If you owe the IRS, you may be wondering if any tax relief programs can help you repay and avoid further consequences.

One initiative that has been effective in helping people deal with accrued taxes is the Fresh Start program. If you qualify for this initiative, you can avoid penalties, fines, high-interest rates, and the IRS withholding your salary.

Here, we discuss five essential things you should know about this program before applying. We will also explain how to identify if you qualify and discuss the measures you should take to maintain eligibility.

1. It Offers Extended Installment Agreement

The IRS Fresh Start program offers fixed installment schedules to taxpayers who owe less than $50,000. Using this initiative, you get a maximum of six years to repay the entire amount. Besides that, the IRS will not charge you any penalties as long as you pay using the provided schedule. They will also refrain from engaging in collection activities such as freezing your assets or holding your wage. When you qualify for an extended installment agreement, you will avoid the debt from building up and get enough time to repay.

2. You Can Opt for Offer in Compromise

If you have standing assets that you can use to clear some portion of your debt, you may apply for an Offer in Compromise (OIC). This program will allow you to repay an amount that is significantly less than what you owe. However, you must deposit an amount equal to 20% of your total debt as you submit your application. As the IRS considers your offers, you must continue remitting monthly installments. Once they accept it, proceed to pay the agreed amount within the provided time. While it is hard to qualify for OIC, it is an ideal option if you want to clear your tax liability to invest or borrow a loan.

3. Fresh Start Can Release Your Tax Lien

Securing investments and qualifying for credit may be challenging when you owe the IRS. But, with the Fresh Start initiative, you can apply for tax lien withdrawal. This program involves paying your entire debt through a direct deposit. After that, you can request the IRS not to display this payment on your credit reports and public fiscal information. This way, your debt will not affect your credit score or financial credibility.

4. There Are Qualifications Requirements

Owing taxes does not mean you automatically qualify for the Fresh Start program. Each repayment option has specific requirements you must meet for the IRS to consider your case. First, you should not be bankrupt because the body needs to prove that you can repay the debt. If you own a small business or are self-employed, you must calculate the amount of tax you expect to pay in the current year. After that, present this information when applying to the Fresh Start program of your choice. You must also ensure that you filed taxes for previous years, even if you did not pay. Moreover, it should be clear that you cannot remit the total amount you owe due to financial problems.

5. IRS Determines If You Qualify

The IRS receives numerous applications to the Fresh Start Program. As a result, it may not be possible to accept all interested parties. After receiving tax relief requests, the IRS will assess them based on several factors. These may include:
  • History of loan default
  • Case credibility
  • Tax filing accuracy
The next step will mainly involve assessing your financial position to determine if you are more qualified than other candidates. With this information, the IRS can decide if you are eligible and send feedback by mail.

Reach Out to Tax Industry for Resolution Services

Failing to observe some measures when applying for tax relief can reduce the chances of qualifying. At Tax Industry, we can assess your case to help you apply for the right IRS Fresh Start program. Our experts can also enhance eligibility by ensuring all the information you submit is credible. Contact us today for tax resolution services.

How Can Tax Relief Services Help Businesses Sustain During Tough Times?

Businesses are not here to play when it comes to money. Your finances are of utmost importance for the progress of your corporation. One of the best ways to ensure financial security in tough times is by opting for professional tax debt relief services


Professional tax relief services can benefit your business in ways you personally cannot. You may have the right knowledge and ability to handle your finances. However, hiring an expert service will only make your operations more precise and agile. 


When the going gets tough, smart businesses seek help from the experts. If you are unsure about relief services, here are some things that might help you make your decision clearer. Continue reading to find out ways in which a tax relief service will assist you in difficult times.


8 ways tax relief services help your business in tough times


Here are eight instances when you can count on your professional tax relief service to have your back.

 

1. You have back up with the IRS


Hiring a tax relief firm for your business is one of the best decisions you can take. This is with regards to facing government services like the IRS. With experts on your team, you will have no trouble tackling the most difficult of situations.


Tax attorneys are equipped with the right knowledge and the right tools to get you out of sticky situations easily. You might not be able to get the right settlement and rulings without their assistance. Use their knowledge and experience to your advantage and work alongside professionals to benefit your business in the long run.


2. Get out of paying additional taxes 


Often, the tax amount you receive consists of additional penalties and interest values that you can get out of. You have to pay the exact amount you owe to the government. However, you can often work your way around these values.


Tax relief Experts have better strategies


Experts from the tax firm you hire can assess your taxes. After careful examination, they might be able to come up with ways to get rid of these penalties. Most of these penalties can be deducted from your taxes once you get the right kind of help from professional tax attorneys. Hiring a professional tax relief firm is an investment that will only prove to be financially fruitful to you in the future. 


3. Keep your property safe in tough times


People often end up losing their homes and cars when businesses face trouble with the law. Tax debts can be very difficult to tackle without professional help. If businessmen ignore such debts, they can reach critical stages that can take a lot of time and effort to resolve. Property seizure is one tactic the IRS uses in extreme cases.


When businesses are unable to pay off their debts, the IRS begins seizing property like homes, cars, etc. You can avoid such problems if you choose to get professional help from tax relief firms. Attorneys can help you dodge such severe consequences easily.

  

4. Avoid bank levies with the help of tax relief services


The IRS could be on your back if you have taxes due from the past. One of the most common ways the IRS collects this money is through bank levies. You will receive numerous warnings, and an official letter before such extreme steps are taken. However, businesses usually pay no heed to such warnings and end up facing the consequences.


Tax relief is a great way to avoid such issues. Contact your attorneys the moment you receive a warning from the IRS. This will help them come up with a strategy to help your business stay afloat. 


5. Prevent wage garnishment by the IRS


Wage garnishment is another popular tactic used by the IRS to collect the funds you owe them. Your paycheck is tampered with when the IRS decides to go forward with wage garnishment. Your employer complies with their demands and chooses to withhold a certain amount of money from your paycheck.


This money is a significant amount that can throw your daily activities off the rails. If you hire a professional attorney, they can help you by appealing to the IRS on your behalf. This can lead to a reduction in the garnishment amount or the complete elimination of wage garnishment too. Find my 401k is as simple as contacting your previous employer. The HR department at your employer should have records of your retirement account and may advise you on how to access it or roll it over if you want to do so.


6. Get up to speed with former returns 


Tax issues are more common than you might think. This is because people all over the country lack the essential knowledge required to file taxes smartly. Often people end up not paying taxes altogether because they deem it too tedious. This practice piles on and becomes an issue in the long run.


If you fail to file your tax returns on time, you will be in deep trouble with the IRS. The solution to this problem is hiring professional tax relief services, which can sort your tax returns out for you. This way, you can catch up to what you missed out on and stay up to date with your filing.  


7. Tax relief services provide Audit assistance 


Tax audits are nightmare fuel for most businesses. IRS audits are the last thing corporations want to deal with. However, audits are more common than you might want them to be. They are a tedious process, and you might want a professional tax relief service by your side when you are being audited.


These firms can look after all your needs and will stand by you to make the process easier. You will not have to face the procedure alone. 


8. Get some work off your shoulders


When your business lands in financial trouble, your responsibilities are doubled, if not more. You have to pay special attention to the operations and finances all by yourself. This might be very difficult to manage. The quality of your work might falter.  You are spread out too thin, and this could affect your business negatively.


In such cases, hiring a professional tax relief firm can help you save time and money. This investment will not only protect your business financially, but it will also help clear your mind. Focus on what is important and keep your business running while you let the professionals handle your finances.  


Financial security is something you cannot compromise on. If you are looking for a trustworthy and competent solution to your tax needs, it is crucial that you pick a reliable tax relief service too. Let go of all your worries and inhibitions and work alongside professionals to get your business back on track again.


Talk to a Tax Relief Expert Today

Tax Relief Services – How to Find the Right One?

Are you looking for the right tax relief services company? Among the pool of many, it is difficult to find yourself a company that is there to genuinely help you out with your tax issues. However, with the right knowledge and tips, you can weed out the scam artists and connect with the companies that offer legitimate taxation services. Here are some factors that will help you determine which tax relief service is right for you and how to choose one:


1. Offer in Compromise in Tax Relief Services


In your attempt to find out the best tax relief services, you might come across people who will promise you reduced owed amounts and guaranteed settlement through the OIC. If you see the firm guaranteeing you an offer in compromise settlement, it’s a red flag. There is no tax relief service that can guarantee you an OIC settlement. The IRS first assesses your eligibility for an OIC settlement and then decides if you deserve it or not. It doesn't hand out OIC to just anyone. 


2. Interest and Penalties


Another red alert is when a tax relief service company tells you that by hiring them, your interest and penalties will be stopped. The truth is that as long as you have due balance, the interest will run. Yes, some penalties can get abated. But you have to know that just because you hired a professional tax relief service, you can’t stop paying or filing your taxes without facing the consequences. Genuine tax professionals claim to help you reduce your interest and penalties to the minimum, not to stop them.


3. The Person Working on Your Case


All the tax resolution firms are required to have licensed attorneys, CPAs, and Enrolled Agents (EAs). This should not be seen as a selling point. There are many firms that don’t get licensed tax professionals for the beginner’s stage. What you have to look out for is who is handling your case during the consultation and proposal stage.

 

4. Researching Before Hiring a Tax Relief Services


If the tax relief service is trying to get you to sign the power of attorney or work agreement or get you to pay the money in a hurry, be more careful. It might mean that they are hiding something. You need sufficient time to research the company before you make the payment. If the tax relief services have sent you a contract or proposal to start the work, make sure that they have added evidence of their personal license. Before agreeing to anything, take the time to research. It can protect you from untold frustrations and save you hundreds and thousands of dollars.


5. Multiple testimonials and reviews


Check out the tax relief services on the Better Business Bureau. They have the ability to track and report complaints from different verified customers. You can also check out online reviews and talk to other people who have used the same tax relief service. Taking recommendations from people you know and learning from their experiences is the best way to know about the tax relief services.


6. Promises - Tax Resolutions


While approaching a potential client, some sales consultants make big promises on behalf of the tax relief service. You should be skeptical of them. A tax relief company that can tell you ‘no’ when asked for guaranteed results shows signs of ethics, honesty, and knowledge. There is no tax expert that can guarantee to eliminate the majority of your tax debt. A good tax expert will spend a lot of time explaining why you are not eligible for a reduced settlement. 


The basic point is, it sounds too good to be true, it most probably is. You don’t want to work with a tax relief service that over-promises and under-delivers.


7. Flat-fee in Hiring a Tax Resolution Services


This is a major factor that you should take into consideration while selecting the right tax relief service for you. Look for any fixed hidden charges that you might need to pay later. Make sure that you pay close attention to the fine print in the work agreement. What you will see in the contract are a few sentences that state that the company has the right to charge more money from you.


8. Green Card for US Citizen


A green card is a document that enables a non-citizen to live permanently in the United States. Many individuals from outside the United States desire a green card since it allows them to live and work (legally) anywhere in the United States for three or five years and then apply for a USA Green Card.


9. Ethics and Character Tax Relief Services


This is a very simple factor. You can get an idea of their true character by knowing about their involvement with the community. For example, when they are working with charities, doing pro-bono work, and other acts of ethical behavior on a corporate level. These signs show that the organization works for the betterment of the community.


On that note, if any sales consultant is telling you or implying that they have some special connections with the IRS or they get preferential treatment from the Revenue Officers, you have to run the other way. Not only are they lying but are in direct violation of the guidelines issued by the US Department of Treasury. According to this, there are some legal issues associated with practicing before the IRS that include marketing practices. If the tax relief service is willing to bend the law for earning your business, their moral compass and ethical standards come into question.


When you are looking for a tax relief service, you might meet with many sales consultants. Some of them will claim that their company has been in business longer than they actually are. Then, there will be some who are bragging about their combined years of experience. This does not work in your favor at all. It is because you won’t have 20 people working on your case, just 1 or 2. To get an exact idea of how long the company has been around, you can check them on the BBB’s website. To get a precise date, you can check the website of the Secretary of State where the company is located.


Now that you know-how, you can find the best tax relief services for you. With just a little bit of knowledge and research, you can easily find out if the tax relief company is right for you. Make sure that you have a few conversations with them before you sign them on. Investing a small amount of time in finding the right service will ensure that you are in good hands.


Frequently Asked Questions About TAX RELIEF SERVICES



Yes. A legitimate, reputable tax relief company can help you reduce your tax debt or negotiate a deal with the IRS on your behalf. When searching for a tax relief company, watch out for scammers. Do your research. 

 

Before hiring a tax relief company, check the provider’s track record. Be wary of companies that make unrealistic claims (such as helping you avoid penalties and interests). 

Remember, if it sounds too good to be true, it probably is.

Yes. A tax debt relief company will help you explore your tax relief options. A reputable tax relief company employs experienced tax lawyers who negotiate settlements and payment agreements with the IRS on their clients' behalf. Your tax relief company will also help lower your tax liability (business or professional).

Introduced in 2008, the IRS Fresh Start Program helps individuals and businesses pay off tax debts affordably over six years. Taxpayers who owe less than $50,000 of taxes qualify for this. 

 

Qualifying taxpayers must make a payment every month based on their current income and the value of their liquid assets. 

 

By the end of six years, the taxpayer should pay off the debt in full. The program helps avoid interests, tax liens, penalties, wage garnishments, and seizure of assets. 

The IRS rarely forgives tax debt. If you show that you are experiencing financial hardship, the IRS may accept a compromise.


Tax Relief Services During Coronavirus

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.

Penalty Abatement

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.