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Tax relief

Hiring a Professional to Negotiate with the IRS on Your Behalf

Hiring a Professional to Negotiate with the IRS on Your Behalf

By on Feb 12, 2019 in Debt Relief, Tax relief, Tax Tips | 0 comments

In some cases doing things yourself is often the best way to yield quick results. Yet, when it comes time to handle situations like tax filing and debt, it’s often a good idea to bring in a third party that knows the tax laws and has successfully dealt with your special kind of tax case. The Internal Revenue Service (IRS) might respond better to someone who has had experience dealing with various kinds of tax matters. Knowing what kinds of solutions to ask for can go fairly quickly than asking an IRS representative what can be done to help them. While it’s true that IRS representatives are there to assist you, they can only do so much on their end. Bear in mind that they’re not working for you; they’re working for the United States government. Their job is to make sure that they are taking the necessary steps to ensure that taxpayers are paying their debt. They will do what they can to help you but to put it plainly, they’re not going to hold your hand or provide consultation services to you at any time of the day. The IRS is there for you Monday-Friday, 9 am to 4:30pm-and every other taxpayer in the country! That’s a lot of people! In fact, when you consider that many people have to send in separate returns for every business they run, you can start to see that it’s theoretically possible that they’d be dealing with more forms than there are people in the USA. While it’s never gotten quite that bad yet, they do estimate that slightly over 151 million returns were processed last year alone. How Resolving Tax Debt Issues Yourself Might Affect Your Life No wonder you’re on hold waiting for a representative! It’s not uncommon to sit on hold for an hour with the IRS. Not everyone has the luxury of sitting on hold for that long, especially during the weekday. When you finally get a live operator, you may only have a few minutes to talk! As you might imagine, IRS agents are very often backlogged with tax files from dozens if not hundreds of people. They might not know what’s best for your particular...

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IRS One Time Forgiveness: Does It Apply to You?

IRS One Time Forgiveness: Does It Apply to You?

By on Dec 26, 2018 in IRS, Tax Debt, Tax relief | 0 comments

Have you heard offers on TV or online promising to eliminate all of your tax debt? Have you wondered if these promises could be real or are they just too good to be true? In reality, while no formal debt forgiveness plan actually exists, you might actually qualify for significant assistance from the Internal Revenue Service (IRS) that can help you get a clean slate where your taxes are concerned. Success Tax Relief is a full-service tax firm that can help determine whether you meet these criteria. Here are some of the instances where taxpayers may be able to get out from under their tax debt for much less than they owe.   Can Your Tax Debt Be Forgiven   1. How old is the tax debt? If your tax debt is more than 10 years old and the IRS has not made attempts to collect, then the statute of limitations has passed and you will not have to pay your back taxes. That is correct—the IRS has up to 10 years to collect from taxpayers and if they exceed this timeframe, they are not legally allowed to collect.   2. Offer in Compromise The IRS understands that there are instances in which they will not be able to collect the full amount a taxpayer owes. If you have a low income or are experiencing a significant financial hardship, you may qualify for an offer in compromise, which allows you to settle your tax debt for less than what you actually owe. This does not preclude you from having to file; you still must file all required tax returns and also fill out the Offer in Compromise application, which will ask for documentation that proves that you are unable to pay the full amount due. The IRS publishes an entire booklet on the process, which we can help you better understand at Success Tax Relief. If your application is rejected for any reason there is an appeals process. A positive: an Offer in Compromise does not affect your credit history or score, so it is an avenue worth pursuing if you qualify. The recent IRS Fresh Start Initiative has made the application process easier for struggling taxpayers.   3. Non-collectible...

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How To Pay Back The IRS With Payment Plans and Installment Agreements

How To Pay Back The IRS With Payment Plans and Installment Agreements

By on Nov 27, 2018 in Tax relief | 0 comments

If you’re not able to pay the taxes you owe by the due date, the balance is subject to interest and a monthly late payment penalty. By law, the IRS may assess penalties to taxpayers for failing to pay taxes they owe by the deadline.   People tend to forget that there’s also penalty for failure to file a tax return, so you should file in a timely manner even if you can’t pay your balance in full.   If you can’t afford to pay your taxes and you’re not sure what your next move should be, fear not, there is a way out of that tight situation. You may be able to qualify for an installment plan with the IRS. An installment plan allows you to pay your taxes over time while avoiding garnishments, levies or other collection actions. The minimum monthly payment for your plan depends on how much you owe.   Minimum monthly payment   The most logical and beneficial option available for struggling taxpayers are installent plans. You can apply for an installment agreement online, over the phone, or via IRS forms. To some degree, you get to choose how much you want to pay every month and how much is yours worth? The IRS will work with you to find out what you can afford to pay per month, encouraging you to pay as much as possible to reduce your interest and penalties.   If you select too low of an amount, or let the IRS pick a payment amount for you, your minimum payment will be the amount that you owe divided by 72.   If you can pay off your balance within 120 days, it won’t cost you anything to set up an installment plan. Otherwise, you’ll owe about $52 for setting up a direct debit agreement with the IRS, or $105 for a standard or payroll deduction agreement. If you’re a lower-income taxpayer, you may be able to reduce that fee to $43.   Payment Plans   If you owe less than $10,000 to the IRS, your installment plan will generally be automatically approved. Under this type of plan, as long as you pledge to pay off your balance within three...

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Separation of Liability Relief: Who Qualifies?

Separation of Liability Relief: Who Qualifies?

By on Nov 8, 2018 in Tax relief | 0 comments

If you’re dealing with a difficult time in your life, then any added tax burden can just make things worse. Relief by Separation of Liability is a technique offered by the IRS to allocate tax understatement, interest and penalties from a joint return between you and your spouse or former spouse. While you can’t use it to divvy up a refund, this kind of relief can be an excellent way to sort out unpaid liabilities.   There’s no such thing a free lunch when dealing with taxes, however. Only certain taxpayers qualify for relief under this rule.   Separation Relief Requirements   To request separation of liability relief from the IRS, you need to have filed a joint return in the past. If you didn’t file jointly, then chances are that you don’t have too much in the way of this kind of liability anyway. Otherwise, you have to fulfill one of two requirements at the time you send in your IRS Form 8857.   Scenarios that meet those requirements include:   You have not been a member of the same household as your spouse during the last 12 month period ending on the day you sent in Form 8857. You are either legally separated from your spouse or are no longer married to them.   While it’s easy to know the exact date you legally separated from your spouse, taxpayers trying to claim they weren’t a member of the same household are dealing with a slightly more complicated situation.   Proving You’re Not Members of the Same Household   Estranged spouses who aren’t legally separated aren’t part of the same household if they live in physically different locations. However, the IRS has some very specific rules about what constitutes living in a different location. If you were in the same dwelling during the last year, then you’re considered members of the same household. Keep in mind that the IRS might consider a shared apartment to be the same dwelling. The same might even go for a trailer in some cases.   Even if you didn’t live in the same dwelling, you have to prove beyond reasonable doubt that neither of you planned to move back in together. IRS...

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How an Underpayment Tax Penalty Can Be Waivered

How an Underpayment Tax Penalty Can Be Waivered

By on Sep 27, 2018 in Tax relief | 0 comments

If you pay estimated taxes and your estimates come up short, then you could get hit with a stiff financial penalty from the Internal Revenue Service (IRS). Taxpayers who collect income that’s not subject to withholding are supposed to pay estimated taxes. This kind of income includes everything from investment dividends and interest to alimony and lottery winnings. Even paychecks earned by self-employed entrepreneurs are potentially taxed under these rules because nothing gets taken out of them.   The good news is that any penalty you owe on an underpaid bill can be waived.   Calculating Underpayment Penalties   You need to submit IRS Form 2210 to see if you owe any underpayment penalties, which involves calculating your total liability. The IRS calculates penalties based on each individual payment period, and the form comes with two calculation methods to help you find out how much you potentially owe. Use the most recent version of this form because underpayment penalties change annually.   Legitimate Reasons to Request a Waiver   Properly establishing reasonable cause for the underpayment is key to getting it waived. The IRS will require you to meet certain criteria before they’ll wipe away any penalties you might owe. All taxpayers who want to claim a waiver have to prove that they didn’t neglect to make estimated payments on purpose. One or more of the following also has to be true:   A natural disaster, casualty, fire or other serious disturbance prevented you from making the payment on time You couldn’t receive records or other types of financial information needed to file; You became seriously ill or disabled before you had a chance to pay your estimated taxes After the age of 62 you decided to retire   Keep in mind that the IRS doesn’t consider insufficient funds to be a legitimate reason for failure to pay or file on time. However, the reason you didn’t have money at the time the estimated payments were due could meet the above criteria.     Requesting a Waiver from the IRS   Applying for a waiver can be as easy as including a written statement with Form 2210 that explains why you weren’t able to make the whole payment on time. You’ll also need to include the...

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IRS Repayment Options Explained

IRS Repayment Options Explained

By on Sep 13, 2018 in Tax relief | 0 comments

Taking no action is the worst thing you can do if you owe any federal tax debt, especially considering that there are options. If you’re not able to pay your taxes by the original filing due date, then the balance is immediately subject to interest and late penalties. You may also be responsible for penalties associated with never having filed a return. Every day that ticks by allows that debt to grow larger. We will describe below some of the options available to help you repay all the money you to the IRS. You can ease your burden by taking action early on. Consider the following options you have to repay whatever you owe the federal government. Paying IRS Debts Outright Taxpayers who have the money to pay their debt immediately can do so with an electronic funds transfer or with a debit card. Once you’ve paid off the debt, no further interest or penalties can be assessed to you. The IRS will even accept payment from any major credit cards you might have.   Full Payment Agreements Short-term tax debts are the easiest to fix. Say you don’t have the money to pay your taxes in full by the time the due date rolls around, but you’ll have the money within several months. This often happens because you need to deal with an emergency right as tax time rolls around. If you find yourself in this situation, then you can apply for a full payment agreement from the IRS. While interest and penalties will accrue until you’ve paid off your total liability, there’s no other fee associated with the application. Taxpayers who qualify for this option can get up to 120 days to repay their debt.   Monthly Installment Agreements Apply for an installment agreement if you can’t pay off the debt in the near future. Since this involves a formal application process, it does require you to pay a fee. However, it’s much easier to pay your tax debt off if you’re approved because you’re given the freedom to make fixed monthly payments to the IRS without interest. This turns your tax debt into a predictable, monthly expense that you can budget for.   Currently Not Collectible...

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