IRS tax relief 101 – Best tax debt relief programs and 3 companies that can help

IRS tax relief 101 – Best tax debt relief programs and 3 companies that can help

While we’d all like to pay our taxes in full, sometimes, we are forced to do otherwise. Certain life situations can get out of hand, proving too costly and eventually eating into your tax money. If left unchecked, this debt could amount to thousands of dollars and incur serious penalties from the Internal Revenue Services (IRS), including the potential seizure of valuable assets.

Hence, to prevent such a problem, it’s always advised to pay your tax debt in full. However, there’s no need to panic if you can’t undertake this course of action every time. The IRS understands that and has certain provisions in place that might help clear off your tax debt. This article tells you more about the same.

Tax debt relief programs

The IRS offers help through certain tax debt relief programs. These are designed to ensure that you pay back the amount you owe without getting overwhelmed or losing your assets.

Offers in compromise

As the name suggests, this tax debt relief program is a sort of compromise between you and the IRS. Your application for an offer in compromise depends largely on your ability to pay back the amount. If the IRS feels that you can do so, it will be rejected. The government agency takes into account the following factors while assessing your offers in compromise application:

  • Your income
  • Your physical assets
  • Your expenses

If they feel that you don’t have the means to afford your tax liability, a compromised amount is suggested, and you must pay that in two years. You could choose either a lump-sum or monthly payment method.

Installment agreement

If you don’t have the means to pay your tax liability in one go, the IRS gives you the option of making monthly payments. Your savings are thus safe, and there’s no great burden on your financial situation either. You can either choose a short-term payment plan or a long-term payment plan. To qualify for the former, your tax debt should be less than $100,000. As for the long-term payment plan, your tax liability, including interests and penalties, should be less than $50,000.

IRS Fresh Start Program

This is a fairly new program that lowers the burden of tax debt even further. The minimum repayment term was raised from 5 years, which was set in 2011, to 6 years and the upper limit of tax liability has also been raised to $50,000. To qualify for this program, you must have filed all your tax returns.

Why choose a tax debt relief company?
There’s a high probability that you might miss some of the finer details and not get the best deal from the IRS. Certified professionals, meanwhile, are experts in the field and are better suited to help you navigate the situation. Some of the top companies that you can approach are:

  • Community Tax

An initial consultation is free of charge and the company employs a host of attorneys, CPAs, and enrolled agents that have experience dealing with the IRS. The Illinois-based organization is a trusted name, resolving $700 million in tax debt of over 80,000 clients till date.

  • Victory Tax Lawyers, LLP

Attorneys at this firm have over 10 years of experience, although the minimum tax debt required is $25,000, which is somewhat high. That said, customers have been generally satisfied with the service offered.

  • Optima Tax Relief

Experts at Optima Tax Relief have resolved over $1 billion worth of tax debt, which speaks volumes about the company’s ability to settle individual and corporate tax problems. Consultation is free of charge, and there’s also a 15-day money-back satisfaction guarantee on the fee paid towards the Investigation Phase.