Tax debt relief encompasses various programs and measures to help taxpayers manage, pay off, or settle their overdue tax bills. These options can provide significant relief for those struggling with IRS debt. For those needing IRS debt relief in Fort Worth, help is available through tax attorneys in the metropolis. They can help in your journey toward tax debt resolution. Here’s an overview of tax debt relief options Fort Worth residents can explore.
IRS Payment or Installment Plans
If you need more time to pay your tax bill, you can apply for an IRS payment plan. It allows you to pay back your tax debt plus accrued interest and fees in installments. The IRS offers short-term and long-term plans based on your financial situation.
Key Points:
- Interest for late payment will still accrue until the balance is paid off.
- For debts over $25,000, payments must be made via automatic withdrawals.
- Processing fees apply if you pay with a debit or credit card.
- Lower-income applicants may be able to request a fee waiver.
Offer in Compromise
An Offer in Compromise lets you settle your tax debt for less than you owe. It’s an option for IRS debt forgiveness, if you can’t pay the full amount or if doing so would cause financial hardship. However, getting approval for an Offer in Compromise is challenging, with the IRS approving a few applications.
Key Points:
- There is a $205 application fee and an initial payment, both usually non-refundable.
- Low-income taxpayers may have the application fee and initial payment waived.
- You must be current on all your tax returns to qualify.
- You must be able to prove your hardship
Currently Not Collectible (CNC) Status
If you can’t pay your taxes due to financial hardship, you can request the IRS to put your account in Currently Not Collectible status. It temporarily stops collection activities but doesn’t eliminate the debt.
Key Points:
- The IRS may review your income annually to see if your financial situation has improved.
- The IRS can still file a tax lien against you.
Penalty Abatement
You might qualify for a first-time penalty abatement if you have a clean record but get an IRS penalty for failing to file or pay. There is a strict eligibility criteria, including having filed tax returns for the past three years and not having any IRS penalties during that time.
Key Points:
- The IRS also offers penalty relief for reasonable causes, such as a serious illness or natural disaster.
- You’ll need to provide documentation to support your claim.
Hiring a Tax Relief Company or an IRS Tax Attorney in Fort Worth, Texas
Tax relief companies offer to help taxpayers in distress, but be cautious of companies that promise unrealistic results, like eliminating your debt entirely. The Federal Trade Commission advises trying to settle your situation directly with the IRS first and if you are unable to, consult a reputable IRS tax attorney in Fort Worth.
Key Points:
- You may have to pay an upfront fee, and the IRS rejects most offers in compromise.
- You get experience and expertise in IRS matters.
Conclusion
IRS tax debt relief programs provide various options to help manage and resolve your tax debt. If you’re in Fort Worth, seeking tax resolution services from a tax attorney can be beneficial. They can provide personalized help and guidance in navigating these options with legal knowledge and experience in tax debt cases.
