tax-debt-reliefThe individuals who are suffering from burden of debts are wondering that whether they are eligible to get the tax debt relief or not. You can go through the national debt relief reviews before opting for the appropriate tax debt relief for yourself. You can definitely work out a suitable deal with your agency regarding your tax debts. A reasonable amount of the payment terms can be worked out easily which can be mutually beneficial for the taxpayer and the agency.

Revenue Agency: The revenue agency can easily be reached with just a phone call. You are required to explain your entire situation properly and make them understand about the reasons of not filing your returns on time. It cannot be assured that the agency will grant your request, but an effort can definitely be made.

IRS Notice: When the taxpayer receives a notice from IRS with code included in them like CP 504, it means that this is the final notice of the balance due. This notice can be followed by another levy notice on the taxpayer’s state tax refund. This levy notice can come due to the unpaid balance in the tax account. The tax levy can cause great stress to the tax payer as the Government seizes the assets if the debtor fails to repay.

Installment Agreement: When the taxpayer is not able to pay his own tax, then he can avail the tax debt relief for the time being.  Applying for the tax debt relief does not mean that you are asking for the entire elimination of your IRS. You can obtain the installment agreement with the agency. If the payments to the tax debts are impossible in a single time, the installment agreement can be allowed by the IRS. After the Levy, the IRS can legally claim the property of the taxpayer if the installment agreement is not met with standard rules. The installment agreement is negotiable in nature. For undergoing the negotiation activities, a tax relief expert can be appointed. Though the option can create inconvenience to the large amount of debts, this option is only viable if the tax debt amount is more than $25000. The taxpayer is required to prove his inability to pay the due amount in full all at a time. If the amount ranges less than $25000, the installment agreement can be availed through the Online Payment Application (OPA)

Settlement and Penalties: The settlement in this case will mean that the taxpayer will still have to pay the balance due, but the amount can be reduced. Penalties can be added to the amount which is to be paid later. The amount can be paid in installments. The entire tax can only be relieved in cases where the business really requires it.

Duration of the Tax Payment: If you are unaware of the technicalities of the duration, the tax payers can hope for a tax debt relief. According to the tax codes, the debts of the tax which remains unpaid for three years should be paid in full before the tax relief grant is provided to the taxpayer.

Though the taxpayer cannot escape the local taxes which are included in the bankruptcy declaration, he should pay the business income tax debts before reaching the settlement. The taxpayer can have full freedom for paying through the installment from his budget. Though it may take a little time for getting completely free from the tax, but can be financially convenient for the taxpayers. Though penalties and fines are added, still paying in installments should be agreeable to the parties i.e., the taxpayers and the agencies.

Author

Robert Gombos

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