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Taxpayers can be overwhelmed when they need to pay back taxes to the Internal Revenue Service and are unable to write a check to pay off the amount owed. Having to deal with a tax bill is daunting and the IRS has a track record of being an evil, monolithic empire staffed by heartless, unkind workers who live to make taxpayer's lives miserable. The good news is the reality is much kinder. Although Congress has been belittled for a lack of action on numerous concerns over the past few years it did American taxpayers a couple of favors by telling the IRS to set up several tax relief plans to assist taxpayers with authentic problems paying their tax debts. Regretably the majority of of these relief programs have been given very little press exposure and the vast majority of individuals who owe back taxes are not aware of the possibilities available to them. The number 1 error made by people who have a tax bill is disregarding the IRS and wishing that they will disappear. Believe me, this never succeeds. The IRS has a clear requirement from Congress; collect the taxes owed by individuals and corporations. Just because an individual doesn't reply to a request for information and facts or a tax bill will never mean that the IRS will stop looking to collect. By merely acknowledging that you received the letter from the IRS can help any future communications from being instantly confrontational. Getting a letter from the IRS does not necessarily mean that what the IRS is claiming is accurate. Some reviews by independent organizations suggest that the IRS has incorrect information and facts or has made an incorrect determination in close to 20% of the requests for taxes due sent out. Examine the letter carefully and determine what the IRS request is based on. You typically have up to 60 days to answer to 1st or 2nd requests for information so be thorough in your reply. If you have records and documents to dispute an IRS contention, present these documents and your response in a straightforward, even style. Don't be defensive or vulgar, blaming the IRS of incompetence is not going to make things any less complicated for you. Should you owe taxes, there are programs open to you to assist you pay them in monthly installments. Never suppose that a payment plan is instantly put in place, you will need to work with the IRS to determine what you are able to afford and just how long the repayment schedule ought to be. Don't forget that interest will also be accruing while you're negotiating with the IRS and throughout your repayment time period. It is critical that you keep up the planned payments and keep all payments current, being in default on your tax repayment plan removes all flexibility in working with the IRS. One more chance for tax relief is tax reduction. In cases of personal disaster or emergency the IRS might actually decrease the amount of the principal owed. This process requires a lot of proof of catastrophe and just how the event or events caused personal and financial hardship. This might require you to use a tax professional who can help you to file the right paperwork needed to have the IRS give consideration to your application to lower your tax bill. Nevertheless, if your tax debt is significant the expense of a tax lawyer can be far less than the amount of tax relief that you end up obtaining. While there are no guarantees of relief when you are working with the IRS, some basic rules do apply that will help your case. Reply right away, be courteous and truthful, have appropriate paperwork and make certain that you live up too all the promises that you make. Tax relief can be done but the course of action requires patience and openness.