Most citizens in the US abide by the tax authorities on a regular basis. They file their tax returns and pay the due to keep the country strong and financially stable. The most common reason for failing to comply by the tax regulations is lack of information. And in most cases, the IRS will take steps to assist the tax payer abide by all the relevant rules.
But, it may happen that you get into a position where you owe the IRS an amount of money that you can’t pay. For instance, your tax returns might have been incorrect for various years, implying that you’ve paid less tax than is due. If that happens over the years, the outstanding amount can be substantial while interest and penalties are taken into consideration.
Okay, the good news is that there are IRS debt relief options that can assist people or business entities in your position.
- IRS Tax Relief Settlement: This will permit a tax payer to settle their debts for a percentage of the amount owed, depending upon their age, personal budget and assets.
- Offer in compromise: This scheme was developed by Congress to permit tax payers a onetime chance to clear their debt through tax resolution service to the IRS for a fraction of the actual amount due.
Tax legislation gives the IRS power to settle federal tax liabilities for less than the true amount, when the tax payer can show exceptional circumstances. For instance, if they can show that tax collection would be unfair or impose financial hardship.
The main issue with this scheme is that it’s highly popular. As a matter of fact, so many unsuitable cases were submitted that the IRS, in an attempt to discourage OICs, started to investigate each case closely.