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Taxpayers may be overwhelmed when they must pay back taxes to the Internal Revenue Service and are not able to write a check to clear up the debt. Having a tax bill can be intimidating and the IRS has a track record for being an evil, monolithic business staffed by heartless, merciless workers who live to try to make taxpayer's lives miserable. Fortunately the reality is much gentler. Although Congress has been belittled for inaction on several issues over the past few years it did taxpayers a couple of favors by telling the IRS to put in place several tax relief tools to help people with genuine problems paying their tax debts. Unfortunately the majority of of these relief programs have received hardly any press exposure and the majority of people who owe back taxes are uninformed of the alternatives attainable to them. The number one mistake made by people who owe taxes is ignoring the IRS and hoping that they will disappear. Trust us, this never works. The IRS has a specific requirement from Congress; collect the taxes owed by individuals and businesses. Just because someone doesn't reply to a demand for info or a tax bill will never mean that the IRS will stop looking to collect. By just recognizing that you received the notice from the IRS should help any future contacts from being instantly confrontational. Receiving a letter from the IRS will not mean that what the IRS is alleging is right. Recent studies by third party organizations reveal that the IRS has wrong information or has made an improper determination in almost 20% of the demands for taxes due sent. Study the letter meticulously and find out what the IRS demand is based on. You typically have up to 60 days to reply to 1st or 2nd requests so be comprehensive in your response. If you have documents to dispute an IRS claim, present these documents and your response in a clear, even style. Avoid being defensive or rude, blaming the IRS of incompetence won't make things any simpler for you. If you do owe taxes, there are plans open to you to aid you pay them in installments. Do not assume that a payment plan is instantly put in place, you will need to work with the IRS to determine what you can afford and just how long the payment schedule ought to be. Remember that interest will also be accruing while you are negotiating with the IRS and during your repayment period. It's vital that you maintain the scheduled payments and keep all payments up-to-date, being in default on your tax settlement program removes all versatility in working with the IRS. Yet another chance for tax relief is tax reduction. With cases of personal disaster or crisis the IRS may actually decrease the amount of the principal you owe. This process calls for a good deal of proof of disaster and how the event or events caused personal and financial damage. This can require you to hire a tax professional who is able to assist you to file the correct paperwork necessary to have the IRS give consideration to your application to lessen your tax debt. Nevertheless, if your tax bill is substantial the cost of a tax lawyer may well be a great deal less than the amount of tax relief that you end up receiving. While there are no guarantees of relief when you are working with the IRS, some simple guidelines do apply that will help your case. Respond right away, be considerate and truthful, have appropriate documentation and make certain that you honor all the promises you make. Tax relief is possible but the method requires perseverance and openness.