How Does Tax Debt Relief Work?

How Does Tax Debt Relief Work?

How Does Tax Debt Relief Work?

The IRS and state tax authorities offer tax debt relief for a simple reason—many taxpayers need help paying off their tax debt. Rather than spend more government resources trying to collect back taxes from these people, tax debt relief options exist to provide payment arrangements that are suitable to both the government and the taxpayer.

Tax Debt Relief Is Personalized

There is no one-size-fits-all tax debt relief program. Sure, some people can settle their IRS tax debt for much less than they owe, but others will need to use different tax resolution strategies.

Your best tax relief option will depend on many factors, including:

  • Your income, assets, expenses, and liabilities
  • Whether your financial hardship is temporary or likely to persist long-term
  • How much you owe in back taxes, penalties, and interest
  • How old your tax debt is

Every tax relief program will have its own requirements, and many come with continuing obligations. For example, taxpayers who use IRS installment agreements are required to stay in full tax compliance during their repayment period. If you make all your payments, but forget to file your current year tax return, your payment plan could be terminated.

Benefits of Tax Relief

Since every tax relief plan is personalized, the benefits also depend on your unique situation. Those who seek tax relief may get any of the following benefits:

  • Avoid enforced tax collection, such as bank account levies, wage garnishments, or tax refund seizures.
  • Get more time to pay off your tax debt.
  • Reduce the amount you owe using penalty abatement, innocent spouse relief, or an Offer in Compromise.
  • Create a practical plan for eliminating your tax debt.

These strategies work best when they fit your overall financial situation. It doesn’t help to negotiate an installment agreement that you can’t realistically pay or to apply for an Offer in Compromise that is unlikely to be accepted.

Request a Tax Debt Relief Consultation

Find out where you stand and what your options are during a consultation with a tax relief attorney. You can save yourself time and frustration by talking to someone who understands the nuances of each tax relief program and how they apply to your specific circumstances.

The Gartzman Law Firm offers delinquent tax return preparation and tax settlement help for both federal and state tax debt. Use our contact form to request a consultation with an Atlanta tax resolution attorney.

Share This