If you owe back taxes, the Internal Revenue Service or State tax agency may come after you to collect. But there’s some good news: You can apply for back tax relief, which can significantly reduce your tax liability and enable you to pay less each month until your debt is paid off. If you’re looking for more information about this kind of tax help, read for an overview of the available programs and how to apply for them.
What is back tax relief?
Back tax relief is a section of the IRS code that allows taxpayers who have already paid their taxes to file an amended return. This could be helpful if they have additional income or expenses to report. Many people do not take advantage of back tax relief because they don’t know it exists or are scared of getting audited by authorities. This step-by-step guide will help you get your refund faster than ever before!
Who Qualifies for back tax relief?
Several factors determine if you’re eligible for back tax relief. Some of these include income, expenses, and assets. However, if you owe less than $1,000 in total taxes over three years or more, you may not qualify for debt relief. The IRS also has specific requirements to meet when seeking debt relief as a qualifying low-income taxpayer.
What you will get from back tax relief
If you’re looking for relief from back taxes, there are a few options you can pursue. One of these is an Offer in Compromise, a settlement between you and your lender where they’ll accept less than what you owe—this process can take anywhere from three to six months (or more). Another option is to work with an IRS specialist who specializes in helping taxpayers who are facing problems with their tax debt.
When should you contact a professional?
If you’re sitting on a pile of unpaid taxes or are struggling to keep up with ever-changing tax laws, it may be time to call in a professional. Professionals can help you find ways to legally minimize your tax liability while advising you on how much you should be paying down each year.
Do you need help from an accountant?
If you find that your taxes are too complicated or don’t have enough time to handle them yourself, consider hiring an accountant. Accountants are not only experienced professionals but also familiar with the tax law; they can find deductions or help advise on how to reduce your tax burden legally. Finding a good accountant is similar to finding any other professional—start by asking for references from family or friends, then interview those referrals.
If you have any questions about back tax relief or want to know more about how it works, please contact me. I will be happy to help.
Must see our related post: Can A Tax Accountant Help with Tax Planning?
5 Tips for Dealing with the IRS on your own
When dealing with an IRS notice, you should follow these five tips. Understand that if you ignore your issue, it will only get worse. The longer you wait to make a move, the more time they have to add interest, penalties, and other fees onto your Account. Once they receive a tax lien or levy on your wages/income, it could take years to clear up, depending on how much is owed. If you want to avoid these consequences, contact a professional immediately. They can help you understand what options are available for back tax relief and can help protect your assets from seizure by filing for bankruptcy protection if necessary.