Does the April 15th tax deadline strike fear in your heart every year? It's even worse if you have unpaid tax debt to the IRS and no plan to pay it off. If that's the case, your tax bill is more like a time bomb than a filing deadline. The best way to defuse that tax debt relief time bomb is to cooperate with the IRS, which may come as a surprise to you. When you have a tax bill to pay, the IRS may seem like the enemy, but there are options available to help you get it paid off. In this piece, we'll discuss a few details about tax debt relief.
What Is Tax Debt Relief?
Whatever helps you pay what you owe the Internal Revenue Service counts as federal tax debt relief? This can include more time to pay or a reduction in the amount you owe. The right tax debt relief can help you resolve your tax debt issues and get your finances back on track.
Government Assistance for Tax Debts
Unbelievably, the IRS is aware of how challenging it may occasionally be to find the funds necessary to pay your taxes. However, many options are available to assist you in resolving your tax issues while still paying what you owe. Listed here are a few illustrations.
• Filing Delayed
You can request more time to file your taxes if you don't have all the necessary documentation by the April 15 deadline. The bad news is that requesting an extension will not absolve you of interest or penalties on any money you owe. By April 15, you must have submitted your best guess at your financial obligation. The good news is that if you file for an extension, you'll have until October 15 to finish your taxes without paying any late fees.
• Budget for the near future
If you don't have the cash to pay your taxes in full, you can apply for a temporary payment plan. This gives you an extra 180 days to make your payment, and there is no fee associated with this plan as long as you pay what you owe by the due date.
• Payment Schedules in Installments
If you can't pay your taxes in full within 180 days, you can set up a payment plan with tax debt relief. You can make monthly payments to the IRS over three to ten years through an instalment payment plan. There are expenses involved, such as the plan setup fee, interest, and possible penalties. However, the IRS cannot garnish your wages or seize your assets if you set up a payment plan. It also protects you from criminal prosecution and potentially larger financial penalties.
• IRS Programme Offering a New Start
The Internal Revenue Service (IRS) Fresh Start Programme is an umbrella term for initiatives designed to facilitate communication between the agency and those who owe back taxes.
The tax debt relief can only place a lien on your property for unpaid taxes if you owe more than the new threshold amount, thanks to the Fresh Start Programme. For the reasons that will become clear, it also simplified the process of submitting an offer in compromise.
Remember, you will need help to hide from your tax bill. Trying to ignore your tax problem will only lead to more interest and penalties.
File your tax debt relief and communicate with the Internal Revenue Service to learn your options. Suppose you need help keeping track of your tax obligations. In that case, you have the option of seeking the advice of a qualified tax professional like Tax Hardship Center or approaching the IRS directly.