What Is The State Tax Relief Hardship Program?
You may have heard that your state has a tax relief hardship program and wonder if you may potentially benefit from it as it relates to your back taxes or even your upcoming tax return. Each state offers its own hardship relief program, which may mean that the Internal Revenue Service (IRS) will waive penalties for any missed payments during a period of time. For example, this can occur after a natural disaster like Hurricane Matthew. In many cases, the IRS was flexible with those who were already making payments toward their tax debt and were unable to make their payments because the infrastructure in their community was destroyed. The IRS waived the penalties normally associated with missed payments. The rules around these hardship programs vary from state to state, so it’s important to consult your state tax law for specific details.
You might know that Success Tax Relief has offices in both Georgia and Texas. One good piece of news is that while Georgia assesses a six percent income tax, Texas doesn’t have the same policy. They’re one of a handful of states, including Wyoming, Nevada, South Dakota, and Florida, that don’t charge any state income tax at all.
Some taxpayers that work in more than one physical location might have to deal with multiple state tax laws. If you find yourself in this situation, then keep this in mind and get in touch with tax professionals who understand national laws.
A Tax Company Can Manage Communication With the IRS for You
One important thing to remember is that if you’re working to make payments to the IRS and something out of your control happens that makes it impossible for you to make your payments, the IRS might work with you. In fact, if you have back taxes owed to the IRS, it’s always in your best interest to get ahead of this problem and work with them on a plan to resolve this debt.
Success Tax Relief is a tax firm that’s dedicated to helping Americans solve their tax problems. Our team works directly with the IRS, managing all communication on your behalf, to find a solution to your unique and specific tax problem that works for you. The IRS offers several programs to all taxpayers that help countless individuals and businesses finally get out of tax debt. Here are two main ways this is done:
- Offer in compromise: In certain cases, when it’s determined by the IRS that paying the full amount of your tax bill would cause economic hardship, they will grant what is known as an Offer in Compromise. This allows a taxpayer to pay a reduced amount to the IRS. The benefit to the IRS is that they recuperate some of the taxes owed to them, even if it is not the entire amount.
You might think that this sounds a bit off since you’re probably used to the idea that the IRS is interested in collecting every last penny owed to them. In a perfect world or at least perfect from the IRS’ point of view, this would be the case. However, tax agents are realists and they know that they won’t be able to recover all the money that they feel they’re supposed to get. As a result, they offer these packages with the hope that they can collect at least a portion of it and put it in the national coffers.
- Installment agreement: An installment agreement allows you to pay back taxes by making payments over time, rather than in a single lump sum. For many, it’s easier to make monthly payments to the IRS rather than the large sum on April 15th. As long as you pay the full amount during the terms of the agreement, you will avoid fees and penalties. While you’ll still have to pay everything in full, this reduces your tax debt to the status of any other monthly bill that you might be responsible for.
Numerous people are already used to paying for everything from their car to their mortgage on a monthly basis. If this sounds like you, then you should be more than comfortable with an installment agreement. Since you’ll still be responsible for paying everything off, you might want to set aside a little extra money in your monthly budget to cover your taxes. This will help ensure that you never miss a payment again.
Either of these two solutions is much better than trying to pay everything off in one lump sum if you don’t have it. Realistically, you can generally expect that the IRS will be more ready to offer you an installment program than any sort of compromise. You might have heard of taxpayers who infamously settle their entire debt for pennies on the dollar.
A majority of people won’t get this opportunity, but you can greatly increase your chances of having it happen by working with tax professionals who have experience dealing with governmental agencies. Even if they’re not able to get you approved for one of these wonderful deals, you might very well be eligible for some other kind of fair hardship program that will help you get out from under your debt faster than you ever thought possible.
Find Solutions to Your Tax Problems
If you owe the IRS money and are in a situation that you think may qualify a special hardship program, it’s always wise to explore your options. The IRS may be more flexible than you think. The team at Success Tax Relief can work directly with the IRS to negotiate a settlement that may lower your tax bill or make the terms easier to pay. Call Success Tax Relief at 877-825-1179 for more information, or contact us online today!