If you owe the IRS money, you need to know about tax debt relief. You might find yourself feeling like there is no way out.
However, there are a few programs that offer hope for both an easier payment plan and forgiveness of debt.
Unfortunately, there are scammers who will take advantage of your situation. The biggest red flag is the promise of debt elimination if you pay upfront.
The IRS does not work this way, so beware! Here’s what you really need to know about getting into official debt reduction or elimination campaigns with the taxman:
How do I know if I truly owe?
You are likely in trouble if the IRS has sent several notices regarding payment over several months without being able to collect on it.
They have a legal limit of about 8 months to take action before it is too late, and the debt falls off their books.
Can I erase it? No.
Unless you qualify for one of these programs, there are no tricks or loopholes that will eliminate your tax debt with the IRS. The only forgiveness possible come in two forms:
- reduction, which means they will lower the amount you owe, possibly changing interest rates or monthly payments;
- or complete elimination if you can prove an “innocent spouse” status. Unfortunately, this status shows your non-filing partner had the most responsibility for the problem.
It’s also worth noting that even though you can put yourself into a temporary suspension of collection efforts by filing form 9465, it will not wipe out the debt. It’s there waiting for you when your efforts are done.
What are my options?
Here are the available programs for tax debt relief. Just keep in mind that to qualify, you will have to prove financial need and satisfy all requirements before seeing any benefit:
Here are some telltale signs of an IRS scam :
- The promise of complete elimination without special qualifications, including advance fees (“you’ll have to pay a few processing costs first”).
- Requests for personal information upfront Offer free help to file long after the deadline.
- Request access to a website or social media account.
- Claim affiliation with government or law enforcement High-pressure sales tactics that employ scare tactics
- Offer no payment plans but requests upfront money.
- Guarantee results. Because everyone who applied has been accepted.
- Only one person claims the program works, everyone else is a fake or part of a scam.
Tax debt relief can be confusing and frustrating, but it can make your life easier in the long run. If you meet certain income qualifications, try to take advantage of these government programs.
If not, don’t worry.
Just make sure you file your tax returns on time and pay what you owe when due, (not scammers posing as the IRS). Remember that paying upfront for reduction or elimination will not work!
Is there a tax debt relief program?
Do you think that the IRS has your back? If you find yourself with an overwhelming load of debt, due to unpaid taxes, it might be time to sit down and read on.
Tax debt relief is more than possible, but you should understand what happens when you can no longer pay the IRS. Once this happens, the next best course of action is to read the following.
How do you know which IRS programs are scams? And what are your next steps when it comes time to file for tax debt relief? These are common questions that many taxpayers have, so here’s an article on all of this information!
Apply Tax Debt Relief Program to IRS Official
How to apply tax debt relief program to IRS?
To apply either tax debt relief program to IRS, you need a few things we recommend:
Contact the office that is claiming you for any information and remain calm Stay on top of your records and paperwork, it can be complicated and very easy to make mistakes.
If you don’t keep good records regarding any communication or interaction with the agency and any agency personnel.
Stay on top of your debt, it can be hard to notice downward shifts in the interest rate or monthly payment if you aren’t checking often.
Keep these tips in mind for tax debt relief. For one thing, don’t pay upfront for anything.
You also need to save all your paperwork and receipts, as well as any communications with the agency, if you are to have any chance at getting your tax debt reduced or eliminated.
Of course, the best time for this is now, during tax season!
Some people end up paying more than they should be due to simple mistakes that could have been avoided by seeking professional help.
This doesn’t mean you can’t still file accurately if you plan to apply for tax debt relief, it just means you may need to contact an accountant if you feel overwhelmed.
Hopefully, the application of the followings tips will help during your process with the IRS!
If you would like more information on tax law and filing, stay tuned. We’ll be releasing some articles soon about IRS audits and what they can entail.
Tax debt relief is an important program for many citizens, but it’s also one of the most common scams.
If you are receiving threats about unpaid taxes or requests for bank account information, contact your local police department immediately!
The sooner you report suspicious activity, the more likely there is to be a resolution to your case!
Signs of Tax Debt Relief Scam
The IRS will never contact you via text, phone call, or email. The IRS will never ask you to pay with an iTunes gift card.
Nor will they tell you that if you don’t pay your taxes, then law enforcement or some other agency is coming after you right away.
This is not how the IRS works. The only time the IRS may contact you is if they need to verify some information or if they are moving forward with an audit.
If you do receive contact from someone claiming to be the IRS, make sure it’s in writing and ask for verification of their identity before doing anything else.
You should also never pay upfront for services claiming to eliminate, reduce or delay your tax debt.
This is the number one sign that you are dealing with a scammer!
If you are unsure about whether or not your case falls under IRS programs, it’s best to seek professional help before agreeing to anything upfront.
If someone claims they can “erase” your debt for a fee before the filing deadline, then it’s best to contact your local authorities.
It is possible that they are trying to scam you, and they will not be able to do anything about your tax debt unless you file or pay upfront for services in full.
The IRS offers several programs for citizens with a variety of different tax-related issues, but scammers take advantage of these programs and misrepresent them to their clients.
If you do have a tax debt, you can still file your taxes even with a pending case.
However, if the IRS contacts you about an unpaid tax bill or audit, it’s best to seek help from a licensed professional before entering into any agreements.
Some people make the mistake of paying upfront or signing with an agency that pretends to offer tax debt relief when in fact they are just looking out for their own best interests.
Don’t be fooled!
These scammers will take your money and run with it, leaving only stress behind. If you do have a tax debt, taking control is the first step in the right direction.
It’s important to understand that by fil
ing late or not filing at all, you are putting yourself in a position of being audited. This is why it’s definitely worth taking the time to file your taxes so any tax debt relief program can begin with accurate information!
It is unfortunate that there are still people out there who would like to take advantage of citizens who are just trying to sort out their financial lives.
If any agency claims they can settle your debt for a fee, walk away!
The only way you will be able to take control of your tax situation is by filing or working with the IRS directly.
Filing late comes with its own penalties and interest fees. But there is nothing to worry about if you find yourself in this situation.
The IRS offers several different programs for citizens with a variety of different tax-related issues, and there are plenty of options out there for people who feel overwhelmed when it comes to filing their taxes or dealing with an audit.
The best thing you can do is stay informed and take action to get your financial situation under control.
Does the IRS really forgive tax debt?
The answer is no. However, there are certain tax relief programs that can help taxpayers get out of debt with the IRS. Some tax relief programs even make you eligible for an IRS settlement if you owe less than $50,000 in back taxes.
How much will the IRS usually settle for?
The IRS will usually settle for a small percentage of the amount owed, ranging from 10 percent to 20 percent.
Can I negotiate with the IRS?
Yes! In certain cases, you can work directly with the IRS to reach an agreement that is acceptable for both parties.
You can file a Collection Appeal Request by phone or in writing if your account is in collection status, or you can request a Collection Due Process hearing. You have 30 days from the date of your notice to file an appeal.
And if you disagree with the result, you may contact the appeals officer assigned to your case and submit additional information.
