Is the IRS on your back about outstanding debt? Whether you’re an individual or you’re running a business, the thought of needing to pay taxes that you cannot afford can be overwhelming. If you’re faced with financial hardship there are options to relieve this burden.
Take a look at this quick guide to learn about the process for obtaining forgiveness of debt from the IRS, how to qualify for the program, and where you can find help to get through any complications.
Know the Process for Obtaining IRS Forgiveness
Image via Flickr by shixart1985.
The IRS is not an agency that is quick to ignore a debt owed to them, but they do understand that financial hardships can come to anyone at any time. The agency has options that will relieve pressure on you or your business, depending on your situation.
The first step is to determine your situation and what kind of assistance you will need. The IRS believes that total or partial debt forgiveness in the form of an Offer in Compromise should be reserved only for those in the worst financial situations. They would rather you first consider a short-term payment plan or long-term installment agreement.
Know If Your Circumstances Qualify You For IRS Forgiveness
While everyone would surely love to have their tax debt erased, it’s important to understand the circumstances that would qualify an individual for partial or full debt forgiveness through an IRS Offer in Compromise settlement.
If you’re at the point where you require drastic tax relief, the IRS will consider your situation individually, including your ability to pay, income, expenses, and asset equity. Essentially, they’re looking to see what they can reasonably collect within their legal restrictions and your capabilities.
When you’ve studied the process of applying for an Offer in Compromise, you’ll want to use the booklet provided in Form 656-B that shows you the needed forms, such as the 433-A (OIC) for individuals or the 433-B (OIC) for businesses, as well as Form 656(s). It also shows the related fees and initial payments involved with payment plans.
Ways to Find Local, Regional, or State Agencies to Help With IRS Debt Relief
For many people, filing taxes can be complicated work, especially if you’re filling out atypical forms such as the ones involved in IRS debt forgiveness. What you don’t want is to find yourself in a position where you’re incorrectly processing forms yourself or hiring an unqualified individual to do it for you. Instead, you’ll likely want to find a tax relief company with expert certified public accounts, enrolled agents, and other tax professionals to do the work properly.
To find a tax relief company in your area, you can easily do an online search and check website ratings to determine if customers are reasonably satisfied with their service or not. If you live in a large enough city, you are likely to have nationally recognized brands whose reputations may be easier to determine.
Tax problems are common, and though it isn’t something you want to go through, there are options available to get you through the process, and tax professionals to help as well.