Taxpayers who have tax debt often find back tax relief a hassle because of bad legal advice, or ongoing fees. Many taxpayers believe they can resolve their back taxes on their own only to find themselves entangled in various IRS rules and policies. For a smooth resolution, taxpayers should consult with a tax professional before contacting the IRS.
IRS & Back Tax Relief Plans
The IRS has various tax resolution plans that taxpayers can use to resolve their back taxes. Every tax debt resolution plan has specific guidelines, some may be flexible. The IRS determines a taxpayer’s ability to pay a tax debt on the basis of their financial strength before qualifying them for a tax debt payment plan.
For example, taxpayers applying for an Offer in Compromise, an IRS payment plan that reduces the tax debt amount, are expected to have little money to pay the tax debt. The IRS considers all assets and a taxpayer’s ability to take a loan to pay back the tax debt, along with income and savings to judge financial strength.
The IRS slaps a penalty on taxpayers who apply for payment plans, especially for tax debt reduction, when they clearly have the ability to pay back the tax debt in full. Therefore, taxpayers must only consider those payment plans they qualify for.
Often, fraudulent back tax relief companies and tax professionals use false advertising to tempt taxpayers into buying their services. They intentionally do not disclose details of a payment plan to taxpayers. Instead, their advertisements tempt taxpayers to get their tax debt reduced drastically through IRS payment plans. After taxpayers hire their services, such companies and professionals either do not make any effort to resolve the tax debt or make the cases unnecessarily complicated due to their incompetence or carelessness.
Back Tax Relief: Important Facts
Some of the essential facts every taxpayer seeking back tax relief must know are:
- The IRS investigates a taxpayer’s entire financial history before accepting a payment plan.
- Every tax debt case is different, so it is wise to choose IRS programs accordingly.
- Each payment plan has flexible and inflexible terms and conditions.
- Negotiating with the IRS is possible.
- There are good and bad legal tax help available, so taxpayers should choose wisely.
Taxpayers should gain as much information as they can about their case before contacting a tax help. Our ratings and reviews of some of the top tax resolution services should help taxpayers in their research. Armed with knowledge and good tax help, taxpayers may contact the IRS to achieve a resolution that is not only beneficial, but also allows them to get back tax relief early and effortlessly.