Filing taxes can be a daunting task for many individuals, especially those with multiple sources of income or businesses. Perhaps, you did not have the financial means to settle your tax obligation, leading to an accrual of a considerable amount of taxes. In such cases, tax relief services can come in handy to resolve the issue and relieve you of your tax burden. In this blog post, we will discuss tax relief services, how they work, and how they can help you resolve your tax debt.
What are Tax Relief Services?
A tax relief services is a company or tax professional that specializes in assisting individuals who have a tax obligation burden or problems with the IRS. They provide tax resolutions and negotiate on behalf of taxpayers to reduce their tax debt. Tax relief services can be individuals specializing in tax resolution, law firms, or companies specializing in tax resolution.
How Do Tax Relief Services Work?
When you engage tax relief services, the company or tax professional will first evaluate your tax situation and determine the best course of action to resolve the issue. They will review your tax files, communicate with the IRS on your behalf, and negotiate payment plans or settlements. If necessary, they can represent you in tax court and settle tax debt for pennies per dollar through the Offer in Compromise (OIC) program. Most tax relief service providers charge fees, which vary depending on the complexity of your case.
Types of Tax Relief Services:
Several types of tax relief services can help resolve tax debt issues. Here are the most common ones:
Offer in Compromise (OIC):
An OIC allows you to settle your tax debt for less than the total amount due. The IRS considers an OIC request if all the requirements are met, including proving that paying the full tax amount would lead to economic hardship.
If you cannot pay your tax debt in a lump sum, an installment agreement provides you with a payment plan to settle your debt over a period, usually not exceeding 72 months.
Currently Not Collectible (CNC):
If you cannot pay your tax debt, the IRS may place your account status as Currently Not Collectible. No collection activities will be imposed on your account until your financial status improves.
In conclusion, tax relief services can be a lifesaver for individuals with tax debt issues. The hopelessness of being behind on your taxes can have a considerable impact on your financial well-being. Tax relief services can provide solutions, whether through payment plans, a reduced tax settlement, or representation in tax court. Engaging a tax relief service provider can help you reduce your tax burden without suffering financial strains. Always work with a reputable and experienced tax relief service provider to ensure the best possible outcome for your tax case.