What You Need to Know About Tax Relief
- October 21, 2021
- Posted by: CKH Marketing
- Categories: Financial Tips, Tax tips
The tax relief industry is known for advertising help to distressed taxpayers, mainly those who are in debt to the IRS. Many tax relief companies claim they can help reduce or even eliminate your tax debts through legitimate IRS hardship programs if you pay an upfront fee for thousands of dollars. However, what you need to know about tax relief is that most of these companies are not able to assist their clients… And in reality, many of these companies do not assist in settling your tax debt, and in many cases, they do not send the necessary paperwork to the IRS requesting participation in the IRS programs they claim will help.
Additionally, many of these companies do not provide refunds and leave individuals even further in debt. Some taxpayers who have filed complaints with the Federal Trade Commission (FTC) have reported that these companies have also taken more money by making unauthorized charges to client credit cards and taking withdrawals from their bank accounts.
Engaging with companies like this could be a risky choice, if you owe taxes, but are unable to pay the IRS in full, there are a few legitimate IRS tax relief programs to help, through the agency’s Fresh Start initiative:
First off, you can submit an Installment Agreement Request with your return.
An Installment Agreement is often available to people who are unable to pay their tax debt in full at one time. The program allows people to make payments in monthly installations until the debt is paid back.
The IRS has raised the threshold for streamlined installment agreements from $25,000 to $50,000 in tax debt, and the maximum repayment term from five to six years.
You can also look into the option of an Offer in Compromise.
An Offer in Compromise (OIC) allows eligible taxpayers to permanently settle their tax debt for less than the amount they owe. The OIC is an important tool that helps people in limited circumstances. Taxpayers are eligible only after all other payment options have been exhausted.
Under the Fresh Start initiative, the IRS expanded the OIC program to include a broader group of struggling taxpayers. However, the IRS will not accept an offer if it believes the liability can be paid in full at once or through an installment agreement.
Figuring these issues out and dealing with the IRS can be stressful for many taxpayers, this is why CKH Group is here to help. Book a free consultation here, and one of our friendly tax experts would be happy to guide you through this process.
The above article only intends to provide general financial information and is based on open source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personal tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm / errors / claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.