tax relief solutions

Tax Relief Solutions for You

IRS tax debt is more common than you might think. It happens for many reasons.  You lose a job or suffer a major illness.  Maybe you got divorced or lost a source of income.  Perhaps your small business ran into cash flow problems and got behind on tax payments. Combined with penalties and interest, those late payments can snowball into a much larger sum than you originally owed. 

If you owe IRS tax debt, you are not alone.  Even the IRS knows that they will never collect much of the millions in dollars of back taxes owed to the IRS.  Still, the agency is responsible for trying to collect as much tax debt as possible—and that means they put the pressure on you to pay what you owe.

If paying off your tax debt seems impossible there is good news: many tax relief solutions are available.  Reputable tax relief companies can help you reach an agreement with the IRS.  In some cases it may be possible to settle your debt for a fraction of the amount owed.  Tax relief solutions may include:

Applying for “Currently Not Collectible” Status. If you are currently experiencing dire financial hardship or are on a fixed limited income, the IRS may determine that your tax debt is currently not collectible.  If you are placed on the Currently Not Collectible list, the IRS will not attempt to collect your debt for a set period of time.  When that time expires the IRS will re-evaluate your debt and you may be expected to pay.  In some cases Currently Not Collectible status can last until the statute of limitations expires on your debt.

Receiving a Penalty Abatement. IRS penalties can greatly increase your tax liability.  If you can show an inability to pay, the IRS may agree to reduce your penalties and only require you to pay your taxes and interest owed. 

Reaching an Installment Agreement. If you cannot pay the entire lump sum of your debt but do not qualify for Currently Not Collectible status, the IRS may agree to a payment plan. Repaying your IRS debt on installments can help make your debt more manageable.  In some cases the IRS may agree to a Partial Payment plan in which the installments are less than the original tax debt you owed.

Paying Your Liability in Full. The IRS expects taxpayers who are able to pay their debt in full to do so.  This may require selling some assets, taking out a second mortgage, or borrowing from their retirement plan.  The IRS considers the total amount of your assets when calculating your debt—not just the cash you have on hand.

If you do not pay your debt, the IRS may threaten to file a Federal Tax Lien or seize your property.  The IRS can also garnish your wages for back taxes.  The thought of negotiating with the IRS can be intimidating, but tax relief specialists can help you negotiate solutions.  Our experts may be able to help you get a tax lien released or get relief for wage garnishment.

At Optima Tax Relief our goal is to help you find freedom from IRS tax debt. Our reputable experts are willing and able to assist you.  Contact us to find the best tax relief solution for you.