Life is great when you are expecting a tax refund. However, when you get the news you owe the IRS money, it can be a nightmare. In this time of COVID 19, finances are tighter than ever before for many Americans. If you are facing a tax debt you cannot afford to pay, you may be able to obtain some form of tax debt relief.
Tax Debt Relief Can be A Positive Thing
Today, we’re going to talk about why tax debt relief can be a positive thing, as well as how Ideal Tax Solution can get you the tax help you need.
One of the first things that you can do to help you get some tax debt relief is obtain a payment plan with the IRS. Typically, you can get either a short or a long-term payment plan. Short term plans are free to apply for and are valid for up to $100,000 debt. Long term plans have an application cost and can only be utilized for debts of up to $50,000.
A few notes we would like to mention: These IRS payment plans do not negate fees and penalties that you may have accrued. Balances over $25,000 must be paid by automatic bank account withdrawals. In addition, due to COVID 19, the IRS is being lenient on assessing additional penalties.
Maybe you are having trouble even meeting your basic living expenses, let alone your tax debt due to COVID-19. You may be able to ask that your account be put into “currently not collectable” status. This is a temporary form of tax relief you can apply to the IRS for. You will need a statement of income and expenses, but if granted, you can breathe easier for a while. Keep in mind, this doesn’t erase your debt, simply pauses its collection.
One final form of tax relief is called an offer in compromise. This is a mutual settlement with the IRS where they agree to take less than you actually owe. Not everyone is eligible for this type of tax relief. You must be able to prove extreme financial hardship. Even with COVID 19 causing money problems for many, the IRS accepts less than half of the offers they receive for this type of debt settlement. Just remember, the worst they can say is no.
Say “Yes” to Tax Debt Relief
We understand Americans countrywide are in need of tax debt relief help now. We also understand that trying to find the best solution to this problem can be confusing and overwhelming. That is why Idea Tax Solution is here to help you. We will sit down with you to analyze the amount and type of tax debt you have. Then, we will work with you to apply for the right kind of debt relief for you. We will be with you every step of the way to make sure you get the relief you deserve, so that you can rest easier in these trying times.
We provide professional guidance to people whose lives have been affected by tax problems. To evaluate your specific tax issue and determine if you qualify for tax relief, please contact us for a free consultation. We are COVID-19 prepared, we will work with you over the phone and via e-mail.
The content of this post does not replace the advice of a licensed tax professional. Consult a qualified tax professional for questions specific to your circumstances.