Many people may be looking for tax IRS help which one often finds intriguing. Usually tax laws by the Internal Revenue Service might seem muddled for the common man. The language and terms used might be confusing. Jayden wanted to file his tax returns. He hadn’t filed his tax returns in some years and the last time he did so himself, he made a lot of mistakes that got him into trouble. However the lesson learnt by him was that one needs to check and scrutinize one’s tax returns for errors before filing it. Jayden also made the mistake of not filing his tax returns in time which cost him.

While filing tax IRS help might be sought from tax professionals. This time round, Jayden filed his tax returns in time with help from a professional tax consultant. He filed his return in time thus avoiding payment of any penalties for late filing. Added to it he paid his back taxes so that interest stopped accruing on those thereby reducing his tax liability. Some of the common mistakes that many people make while filing tax returns might be mismatched or missing social security number and name, claiming ineligible dependents, no signature on the returns, not claiming income from Form 1099, wrong mailing address etc. Reviewing one’s tax return before filing it might reduce these errors and speed up the actual processing of one’s tax returns.

In many instances, people fail to file their tax returns for a few years and might accrue tax debt in the form of back taxes, audit penalties or unfiled returns. Hence these people might wonder how to pay off IRS debt. In such circumstances speaking with IRS might prove beneficial but may not be of much help. Approaching a professional tax consultant or attorney might be a good step in understanding one’s tax debt and how best to pay it off. There may be five strategies to help taxpayers with their tax debt. The plans are offer in compromise, installment payment, partial payment installment, currently not collectible (CNC) and bankruptcy. Depending on the monies owed to the IRS in the form of taxes, there might be three brackets in which one might find oneself in. The first being amounts less than $10,000, second in the range of $10,000 to $25,000 and the third above $25,000.

Seeking tax problem help in case one would not be able to pay one’s taxes in full, then applying for payment of the taxes in installments over a period of time not exceeding five years might be accepted. In case one would not be able to pay the taxes in full in spite of making payments in installments, a professional tax consult might be able to negotiate with the IRS so that a portion of the tax debt might be forgiven and the remaining might be paid in installments not exceeding time duration of five years. This might be possible if the taxpayer can establish the inability to pay the total tax debt. The third form that tax relief might be taken up or approved in case both the installment options might fail would be the offer in compromise or the IRS OIC. In order to qualify for an offer in compromise, the taxpayer would have to prove beyond doubt the inability to pay the tax debt in the remaining amount of time. Proof of the taxpayer’s household income, monthly living expenses allowed by IRS and any assets that the taxpayer holds in his/her name would have to be submitted along with the IRS offer in compromise application form. In case the monthly cash flow of the taxpayer is very low but the taxpayer holds valuable assets, then the tax payer can apply for a currently not collectible status which might be granted for a year. If all else fails filing for bankruptcy might be the only solution so as to get out of tax debt.

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Category: Finances
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