Is the Internal Revenue Service (IRS) sending you a tax bill this year? This isn’t the first time this has happened to you. According to government estimates, up to 21% of taxpayers in 2018 may have had insufficient taxes withheld. You might be able to restructure your debt into more manageable payments or reduce the amount of tax you owe the government. No, tax relief will not eliminate your tax bill—in fact, it may end up costing you more in the long run—but it may make paying the federal government what you owe a lot simpler.
What is Tax Relief?
It’s not about getting rid of your tax burden; it’s about working out a payment plan with the IRS or reaching an agreement with them. It’s all about making it easier for you to pay off your tax debt.
Natural disaster victims may be eligible for special tax relief, such as those affected by hurricanes and wildfires. Disaster victims may qualify for deadline extensions and may be able to claim casualty losses on their federal tax returns.
How Tax Relief Works
As tax is automatically taken from your income, you can either arrange with your employer to make payments before this tax is deducted from your salary – therefore saving on tax as you’ll have a reduced remaining salary to pay tax on.
Tax relief initiatives and programs are there to assist taxpayers in lowering their tax bills. This is through allowing them to take advantage of tax exclusions, deductions, and credits. Other types of programs assist taxpayers who are overdue on their taxes, perhaps in settling their payments and, in some cases, avoiding liens.
Changing the federal tax law is frequently prompted by government policy aims. Congress, for example, developed incentives to encourage people to save for retirement in tax-advantaged savings accounts like IRAs and 401(k)s in response to worries about the widespread lack of retirement savings in the United States.
Different Ways of Getting Tax Relief
If you’re feeling burdened about paying bills and taxes, tax relief may aid. There are a set of options provided for you to get help.
Offer in Compromise
If you don’t think you’ll be able to pay your tax obligation in full due to having financial difficulties, the IRS may enable you to settle your debt for a lower amount. An offer in compromise is the name for this option. You can submit a compromise offer if paying your full tax liability causes you financial difficulty or if you just cannot pay it.
When the IRS evaluates your application for an offer in compromise and decides whether or not to accept it, they’ll look at things such as outgoings, financial capacity, earnings, and valuables. To establish whether or not you qualify, they will request financial statements and any other information documenting your finances.
IRS Repayment Plans
The IRS frequently allows individuals to divide their full sum into smaller payments. Payments will be spread out over 120 days or more if you choose a long-term payment plan. To be eligible, you must owe a total of $50,000 or less in taxes, penalties, and interest.
If you choose a short-term payment plan, your payments will be spread out over 120 days or fewer. You can have a combined debt of up to $100,000 to qualify.
How to and Who Qualifies for Penalty Reliefs
You may be eligible for penalty reduction if you meet the set of requirements provided. The penalties on your tax bill will be waived by the IRS if you meet their requirements. You will still owe the taxes you owe, but the penalties will be reduced, resulting in a lower overall bill.
To be eligible for penalty relief, a taxpayer must be able to demonstrate that they tried their hardest to stick to their payment schedule. For example, if a taxpayer cannot pay because of a natural disaster or a problem with their residence, they may be eligible.
What can tax relief companies do?
Tax relief companies frequently offer their services to suffering taxpayers on the internet, radio, and television. Tax relief providers essentially negotiate with the IRS on your behalf for a charge. Suppose you employ a professional tax relief firm to represent you. In that case, they may contact the IRS to try to reach an agreement on an offer in compromise, an installment plan, or penalty or interest abatement. Submit your taxes, and contact the IRS to learn more about your alternatives. Always remember that seeking help is not a bad thing. If you’re feeling overwhelmed, talk to a competent tax practitioner or firm.
Why is Tax Relief a preferable option?
There are five common mistakes taxpayers make when communicating with the IRS:
- Taxpayers believe that IRS agents are tax experts, given that they are working for the IRS.
- Taxpayers commonly ask their CPAs to speak with the IRS on their behalf.
- On their own, attempting to negotiate with the IRS.
- Failures in taking immediate actions.
- Taxpayers often that IRS agents will be treating them fairly.
Owing the IRS may be a frightening experience, but it will only get worse if you don’t address your debt and establish a strategy for the future. The more you comply and read any letters you receive, the more likely you are to receive assistance. Don’t worry if you can’t pay everything off at once. There are a variety of payment plans available. While you may not want to pay a tax professional to assist you with your tax relief, you will almost certainly save money in the long run if you do.
Tax Relief Company is Located near Palm Desert
Coast One Financial Group owns and operates this company. Clients come first at Coast One. They understand that you are having a tough time, whether the IRS or the state is pursuing you for overdue taxes. They are a full-service tax relief firm in palm desert with professional Tax Attorneys, CPAs, and Enrolled Agents who help individuals, corporations, associations, and small enterprises resolve tax issues. This company can be trusted to handle cases throughout the country, reducing tax debt and resolving issues with the IRS and state taxing authorities.
Services Offered by Coast One
Coast One Tax Group provides a number of services to assist clients in resolving outstanding taxes with the Internal Revenue Service (IRS) or state tax agencies.
It can be difficult to deal with overdue taxes on your own. This company can help you get through a difficult situation. Their goal would be to assist you in resolving your tax concerns in the most advantageous way possible.
Removal of Wage Garnishments
If you owe money to the IRS or the state, the IRS or the state may garnish your wages or payments for a contracted service if you owe money to the IRS or the state. You can contact Coast One Tax Group for a free consultation to see how they can assist you with your state salary garnishment.
Tax Lien Withdrawal
When you neglect or fail to pay your taxes, the government has a legal claim against your property. Regardless, no matter where you are in the tax lien process, Coast One Tax Group’s team of specialists has a track record of success in these instances.
Tax Audits or Examinations
Only a small fraction of tax audits are random; the IRS usually has a list of questions it wants to be answered. They give the tax authorities the information they need to reduce the amount payable as much as possible.