Do You Need Tax Relief?

Due to job loss, the increasing cost of living, and issues related to the Coronavirus pandemic, millions of Americans currently have trouble paying their taxes. While the IRS is strict and believes that almost everyone should pay the full amount, there are various forms of tax relief available to citizens. By working with a good tax consultant, you can find out whether you qualify for the forgiveness program and if so, which option is the most suitable.

But how do you know when to get in touch with a professional? The answer is that sooner is always better. If you can find a solution before your tax is due, it's likely that you will have to pay much less. However, a highly qualified consultant can help you even if you've already made a mistake such as failing to file or paying late.

Who Needs Tax Relief?

Many people could benefit from the advice and help of a tax professional, but there are some who need help even more than others. Those who are self-employed or run a business on the side can avoid problems with the IRS by hiring a consultant who can explain the laws and file their taxes for them.Even more importantly, anyone worried about their tax bill should contact an expert immediately. The penalties associated with failing to file or pay your taxes are hefty, so you should do all you can to avoid them. Whether you're anticipating problems in the future or you're already running late, your consultant can help you find a suitable solution.

You Have Trouble Paying Your Taxes

Most people pay the majority of their taxes throughout the year, which prevents them from getting too far behind. However, there are a number of reasons why you would owe the IRS more money at the end of the year. For example, you might have made money through a business on the side, or you might have earned more than expected through regular employment.If you believe that you'll receive a hefty tax bill and you're worried about paying it, you should speak to your consultant immediately. They can explain to you how to negotiate with the IRS. In most cases, you can make an installment agreement. This allows you to spread out your payments over several months or even years, which makes it much easier for you to meet your obligations.

You Failed to File or Pay Taxes in the Past

Taxpayers who failed to file face a hefty penalty of up to 25% of their total tax bill. What's more, interest is calculated on the whole amount. Every day you delay, you pay more. This also applies to those who already filed their tax return but didn't pay the amount due, although the penalty accrues much more slowly in this situation.To prevent your bill from increasing further, you should come to an agreement with the IRS as soon as possible. If you haven't had a similar problem before or there is a valid reason why you haven't filed or paid, you can get your penalties removed. Additionally, you can avoid accruing more debt by creating an installment agreement or proving to the IRS that you can't currently pay your debt.

How Your Tax Consultant Can Help

The best way forwards is to speak to a highly competent tax consultant, who can determine whether you are eligible for tax relief and then help you fill in your application. While some citizens attempt to access the forgiveness program on their own, this is generally not a good idea because success is much less likely. Your specialist will know which programs you are eligible for, and they can make sure you follow the proper procedure and avoid common errors.

Determining Your Eligibility for Relief

The IRS forgiveness program is extensive, and it covers a wide variety of scenarios. The most straightforward solution is the above-mentioned instalment agreement, which allows taxpayers to spread out their payments over a longer time period. This is open to almost everyone, but more comprehensive forms of relief are restricted. For example, the offer in compromise reduces the total amount you have to pay, but more than half of the applications get denied.People who can't pay any of their taxes because they don't have an income or their entire income is used up by their basic living costs might be eligible for currently not collectible status. This freezes all collection activities, but if the taxpayer's situation changes, they have to resume payments. Another potential solution is innocent spouse relief. This is an option for those whose spouses were responsible for the tax issue.  

Filling Out Your Application

Some forms of relief are extremely easy, and they can be completed in a few minutes over the phone. For example, people with low amounts of debt and no adverse history with the IRS can get their installment agreement approved immediately. However, other types of relief are much more complex and require you to fill out a number of forms. In this case, your tax specialist can help you figure out what documentation you need and how to present it.

Negotiating with the IRS

The IRS has immense collection power. By failing to pay your taxes, you risk losing your home, savings, and even your income. However, the government understands that people sometimes have trouble settling their debt, so there are ways to reduce the burden. One of the easiest ways of lowering the amount you owe is getting rid of your penalties and fees.While this is simple for people who have never had a problem before, those with repeated issues will need to prove that they had a reasonable cause for their failure to pay. For example, sickness or the death of a close loved one are accepted reasons. Your lawyer can help you put together evidence and present it to the IRS for you.

Providing Ongoing Help

Once you've resolved your current tax issue, you'll want to prevent it from recurring in the future. A good tax specialist will provide you ongoing assistance. They can give you advice about budgeting for your tax bill and file your taxes for you.This is a good idea for two reasons. Firstly, it prevents you from making mistakes like omitting certain parts of your income, which could trigger an audit. Secondly, it allows you to benefit from all deductions and tax breaks you are eligible for. If you've never worked with a tax specialist, you might be inadvertently overpaying.In recent years, the cost of living has spiraled out of control. What's more, the Coronavirus pandemic has made it hard for small businesses to make a profit. It is therefore no wonder that millions of taxpayers are unable to pay the IRS what they owe.

If you're affected, you should speak to a tax consultant as soon as possible. Ideally, you should find a solution before your tax becomes due, but your consultant can help you out even if you filed or paid late.They will begin by explaining the various types of tax relief to you and determining which one you are eligible for. Then, they can help you fill in your application and negotiate with the IRS. In subsequent years, you can work with your specialist to simplify the filing process and avoid further problems. Get in touch with us now at Tax Alliance in Santa Ana, CA.

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Efficiency through Automation!

Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!

Our Money Back Guarantee!

If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!

Price Match Guarantee

You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.

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