User:BlandingStalnaker725

Taxpayers are generally stressed out when they need to pay back taxes to the Federal government and are unable to write a check to pay off the debt. Having to deal with a tax bill can be daunting and the IRS has a reputation for being an evil, monolithic business manned by heartless, merciless personnel who exist to make taxpayer's lives dismal. Luckily the reality is much kinder. Although Congress has been criticized for a lack of action on several issues over the past few years it did taxpayers a number of favors by telling the IRS to create some tax relief tools to assist tax payers with genuine problems settling their tax bills. Regretably the majority of of these relief programs have been given hardly any press exposure and the majority of people who owe back taxes are unaware of the possibilities available to them. The number 1 mistake made by individuals who owe taxes is disregarding the IRS and hoping that they will vanish. Trust us, this never succeeds. The IRS has a specific requirement from Congress; collect all of the taxes owed by citizens and businesses. Just because an individual does not respond to a request for information or a tax bill will never mean that the IRS will quit looking to collect. By merely recognizing that you received the letter from the IRS might help any future contacts from being automatically confrontational. Receiving a notice from the IRS won't guarantee that what the IRS is alleging is correct. New studies by independent groups reveal that the IRS has wrong info or has made an improper determination in close to 20% of the demands for taxes due sent. Examine the notice meticulously and determine what the IRS demand is based upon. You usually have up to 60 days to respond to 1st or 2nd requests so be comprehensive in your reply. If you have records and documents to question an IRS contention, offer them and your response in a straightforward, even form. Avoid getting defensive or impolite, accusing the IRS of incompetence will never make things any easier for you. Should you owe taxes, there are programs open to you to assist you pay them in installments. Do not suppose that a payment plan is automatically set up, you will need to work with the IRS to determine what you can afford and how long the payment schedule ought to be. Remember that interest will also be accruing while you are dealing with the IRS and during your repayment time period. It is essential that you keep up the scheduled payments and keep all payments current, being in default on your tax repayment program removes all versatility in working with the IRS. Yet another opportunity for tax relief is tax reduction. In cases of personal disaster or emergency the IRS may actually reduce the total of the principal you owe. This process involves a great deal of proof of disaster and exactly how the event or events caused personal and financial damage. This may require you to engage a tax professional who can help you file the proper paperwork needed to have the IRS give consideration to your request to reduce your tax bill. However, if your tax balance is considerable the cost of a tax lawyer can be far less than the amount of tax relief that you end up obtaining. Although there are no promises of relief when you are working with the IRS, some basic principles do apply that can assist your case. Reply promptly, be polite and truthful, have proper documentation and be certain that you honor all the commitments you make. Tax relief is attainable but the method calls for perseverance and openness.