| ng relief from tax debt either means you don’t | | | | taxpayers that make the required minimum payments |
| have to pay the taxes in full all at once or you settle | | | | for a normal installment agreement. This form of tax |
| the taxes owed for less. When it comes to getting | | | | debt relief works in a similar manner to the installment |
| relief from taxes owed many people don’t | | | | agreement above but sometimes the taxpayer |
| realize the various options that are available to them. If | | | | actually doesn't end up paying back the entire amount |
| you can’t afford to pay your taxes in full or just | | | | of taxes owed because the statute of limitations |
| don’t want to cause you feel it will hurt your | | | | expires on the tax debt before they have paid |
| financial situation too much in the time being there are | | | | everything back to the IRS. In order to be accepted |
| methods of relief available. The IRS is very strict with | | | | for this form of tax relief you must prove to the IRS |
| the method that it allows individuals to qualify for. Some | | | | through various financial statements that you do not |
| methods are available to just about everyone and | | | | have the funds to make the required payment needed |
| others only available to a select few that can prove | | | | for the regular installment agreement. |
| their financial situation justifies the relief they are | | | | 4) Hardship Status: If you can't make any form of |
| applying for. | | | | payments to the IRS because it would not leave you |
| Before determining what tax debt relief method would | | | | with enough money to pay for the basic necessities to |
| be best for you must take a hard look at your current | | | | live (The IRS had specific guidelines as to what are |
| financial standing. There are different methods for | | | | allowable expenses) then the IRS may place you on |
| differences in financial situations. Ok financial situation | | | | hardship status. When you are placed on hardship |
| means you don’t have enough money to pay | | | | status the IRS temporarily pauses collections and will |
| currently but you do have some stability in income. A | | | | allow a period of up to several years to pass before |
| very poor financial situation means that you | | | | they check back with you on your financial status. If |
| don’t have the means to pay your taxes and | | | | your financial situation improves then the IRS will |
| you don’t foresee that you will ever have the | | | | require you to pay what is owed. Sometimes |
| money to pay what is owed. Below are methods you | | | | individuals stay on hardship status so long that the |
| should consider in order from OK financial situation to a | | | | statute of limitations expires (10 years typically) and |
| very poor financial situation. | | | | they can no longer legally be held liable for that debt. |
| 1) Installment Agreement: Installment agreements are | | | | 5) Offer in Compromise: An offer in compromise is a |
| available to just about every taxpayer that can't or | | | | form of relief offered by the IRS to those individuals |
| doesn't want to pay in full at the current time. With an | | | | that are in financial distress. With an offer in |
| installment agreement you will be allowed to pay back | | | | compromise the IRS allows the taxpayer to negotiate |
| the taxes owed in monthly increments. The time to | | | | the taxes they owe for a lesser amount. Sometimes |
| pay off the taxes varies by type of installment | | | | the amount can be up to 99% less than the total |
| agreement but it typically ranges from 3-5 years. This | | | | amount owed, but typically it is around 70% less of |
| form of payment arrangement is good for those | | | | total taxes owed. In order to qualify for this type of tax |
| individuals that don't have the money currently but do | | | | relief you must prove to the IRS that the offer you are |
| have enough money to make the required monthly | | | | making them is equal to or greater than the amount |
| payments associated with this agreement. | | | | they would ever expect to collect from you, even if |
| 2) Borrow very short term from family and friends: | | | | they used forced collection mechanisms. This is |
| This method is only advisable if you know you will be | | | | probably the most complex tax relief filing there is. If |
| receiving the money to pay them back in a very short | | | | you think you are a good candidate for this it is a good |
| period of time. If there is any question or doubt in your | | | | idea to use a tax professional to help with your filing. |
| mind that you won't receive the funds it is best to just | | | | Tax relief is something that is available to everyone |
| apply for an installment agreement. Sometimes | | | | but the method used varies by financial situation. It is |
| borrowing from family and friends can help save you | | | | important to only apply for the tax relief method that |
| the hassle of filling out the paperwork or if you need to | | | | you qualify for the best. The IRS is very strict about |
| act fast to prevent additional penalties or even a levy | | | | not accepting taxpayers into relief mechanisms that |
| then this can be an option. This method should only be | | | | they do not financially qualify for. It is extremely |
| used if you are in an OK financial situation and you | | | | important to work with the IRS if you cannot pay your |
| don't have the money currently but know you will have | | | | taxes owed because if you don't they will continue to |
| the money in a short period of time. | | | | tack on additional penalties that can be easily stopped |
| 3) Partial Payment Installment Agreement: A partial | | | | if you were to work out a tax relief method with them. |
| payment installment agreement is available to those | | | | |