Tax relief is a general term that refers to a decrease in the amount of tax you have to pay. If the IRS notifies you that you owe $10,000 or more, you may be eligible for tax relief. When you receive a collection notice from the IRS it’s best to act right away. Avoiding the problem will only lead to penalties that will be harder to resolve, such as interest, levies or liens.
Receiving a tax collection notice from the Internal Revenue Service (IRS) can be highly distressing, especially if you do not have the financial means to settle the obligation. The good news is you can reduce your risk of additional penalties, tax liens, levies, wage garnishment or asset seizures by responding as soon as possible with the aid of a professional.
What is an IRS collection notice?
An IRS collection notice is to inform you of your outstanding tax debt and demand a payment in full. The collection process starts with this notice and will continue until your account is settled or the IRS is no longer able to legally collect the tax.
The first notice you receive includes the outstanding tax debt and any penalties and interest that have accumulated. The outstanding balance is subject to daily-compounding interest and a monthly late payment fee up to the maximum amount permitted by law.
Tax relief tips for when you receive a collection notice from the IRS
Receiving a collection notice from the IRS can feel scary and overwhelming, but don’t panic. Follow these tax relief tips for the best possible outcome for your situation.
Don’t speak to the IRS without a representative
The IRS is not on your side; they have a reputation for tricking people into giving incriminating answers. The IRS is the world’s cruelest collection agency. If you have tax debt, the IRS has the power to drain your accounts and take your assets.
For example, if you have a pending real estate transaction, any profit from the sale of that property that exceeds the mortgage could be collected by the IRS and used to pay your existing tax liability. But with a tax relief firm like Palm Beach Tax Relief your income and assets will be protected from the IRS.
Contact a tax relief professional
As soon as you receive a collection notice from the IRS it’s crucial that you find a trustworthy tax relief professional to take over all communication with the IRS on your behalf. This will lessen the risk of you getting into greater trouble or having to pay back more than you need to.
Once you contact a tax relief professional and explain your situation they will require some documentation from you to assess your situation, pull your IRS transcripts and determine your tax relief options.
Determine your best option with a tax relief specialist
Once the tax relief professional has everything they need to assess your situation they’ll be able to show you which tax relief programs you qualify for. There are a number of tax relief programs available but here are a couple of common solutions.
Installment agreement
This option gives you more time to pay your tax debt by arranging monthly, affordable payments with the IRS. Having an installment agreement in place will ensure that the IRS does not proceed with any further collection actions like liens or levies.
Offer in compromise
It is possible for you to get your debt settled for less than what you owe. This solution is called an offer in compromise.
You may be eligible for an offer in compromise if you are unable to pay your entire tax debt in installments or if doing so would put you in a financial hardship. To check your eligibility for an offer in compromise, the IRS will have to look into your income, expenses, and assets. The IRS usually approves an offer in compromise if the amount offered shows the most they can reasonably anticipate to recover over time.
However, you need a professional to do some preliminary investigation to determine whether or not you may be eligible for an offer in compromise.
In need of a reliable tax relief professional?
Dealing with the IRS is not for the weak, nor should it be done without the help of a tax relief professional. If you receive an IRS collection notice saying that you owe $10,000 or more, call our tax relief firm right away. Our team will do everything we can to ensure you find the relief you deserve. No more sleepless nights, constant worrying, and never-ending stress. We will analyze your situation and provide you with the finest solutions for your particular case. Get in touch with one of our tax resolution experts right away.