Tax Relief Options

If you are in debt to the IRS and need some tax relief, tax relief services may be the right choice for you. A tax relief (or tax resolution) firm typically provides:

  • Tax consultation
  • Tax resolution
  • Tax preparation
  • Tax negotiation and settlement

Tax Consultation Services

Typically, during your consultation you will speak with a qualified representative who will briefly interview you about your current tax and financial situation. This helps the representative consider the best options for your particular situation and allows you to understand the type of services and benefits available. 

Tax Resolution Services 

Once you have completed the initial consultation, it is important to diagnose your issues more thoroughly and develop an appropriate plan for resolution. Using proven strategies, knowledgeable experts can assist you through tax audits, help reduce your tax debt, legally abate penalties, release liens, and stop wage garnishments and bank levies.

Tax Preparation Services 

Prior to resolving your tax issue, you must bring your tax filings into full compliance. A good tax relief company can assist you in this effort. Getting your tax returns in order is important for two primary reasons.

First, you cannot move forward with any tax resolution, negotiation, or settlement without having things in order. Second, if you do not file tax returns with the IRS, they may file them for you. Called a substitute for return, the IRS files it for you without the benefit of deductions that you might otherwise want to claim. This may result in a highly inaccurate and hugely inflated tax bill.

Once this occurs, the IRS will move forward on their collection efforts. While you can replace the SFR with a corrected return and the IRS will recalculate your tax debt, it’s better not to let things get this far.

Tax Negotiation and Settlement 

The most important part of tax relief is negotiating a reduction of you tax obligation and/or creating a manageable repayment plan.

There are a variety of services that tax resolution firms have at their disposal to assist you in your situation. These include:

  • Offer in Compromise (OIC). To qualify you must have an inability to repay the debt within the time the IRS has to collect on the debt.
  • Penalty Abatement. The IRS may assess a variety of penalties on your tax account including late filing and late payment fees. Sometimes the penalties dwarf the actual tax debt.
  • Installment Agreement. This agreement allows you to pay your full debt in equal, yet smaller and more manageable amounts.
  • Partial Pay Installment Agreement (PPIA). A payment agreement whereby the total number of payments made to the IRS is less than the total amount of tax due, when full payment cannot be completed prior to the expiration of the statute of limitations.
  • Tax Lien Discharge. You relinquish your rights and allow any property with an IRS lien to be sold free and clear of the tax lien.
  • Tax Lien Subordination. Allows a “junior” creditor to move ahead of the IRS for claim on the property.
  • Tax Lien Withdrawal. Your tax liability is satisfied and the lien is released.
  • Wage Garnishment Release. Your liability is satisfied and the garnishment is lifted.
  • Bank Levy Release. You paid your tax debt or the time limit expired, releasing the levy.
  • Innocent Spouse Relief. You filed a joint return, the tax due is understated, you didn’t know, so it is unfair to hold you liable.
  • Currently Non-Collectible. Assigned by the IRS when someone cannot pay due to a temporary hardship.
  • Statute of Limitations. The time limitation (generally 10 years) on which the IRS can collect taxes and levies. The start time varies for each action taken.
  • Collection Appeal. The Office of Appeals is separate from and independent of the IRS Collection Office. Check here for your collection appeal rights.
  • Administrative Appeal. You may file an administrative appeal with the IRS under four circumstances. For complete information, check under IRS 8.7.14.4.
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