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How to Qualify for Tax Relief When You Owe Back Taxes

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Tax season is here, and it’s time to pay up. If you owe back taxes, don’t panic! There are many tax relief options available for those who have fallen behind on their obligations with the IRS. To qualify for tax relief, you will need to know which options are available for your particular situation.

In this article, we will discuss how to qualify for tax relief when you owe back taxes. Our goal is to help you can get your money problems solved as soon as possible.

What Type of Tax Relief Programs Are There?

Before we get started with how to qualify for each of these tax relief programs, we will discuss what types of tax relief you can qualify for in the first place. There are several different types of tax relief programs that you may be able to qualify for. A lot depends on your current situation. These programs include seniors, homeowners, education, and property taxes. Each one is a little bit different than the other. They all can help lower what you owe in back taxes if qualified. 

Tax Relief for Seniors

If you’re age 65 or over, then there are some special benefits available when it comes to filing your taxes. It is a special exemption program for seniors. This includes having an increased standard deduction. It also means being able to exclude up to $100,200 in pension income from taxation. You do this by claiming single or married status where applicable before December 31st each year. 

Tax Relief for Homeowners

Filing jointly with spouses who have lived together at least 12 months out of the year can allow you to file as “married filing separately” which could lead to some benefits when it comes time for tax season. This includes larger deductions and lower rates than if filing single or head-of-household status. 

Tax Relief for Education

Some states offer full credit on your taxes for any tuition expenses paid out. This includes colleges, universities, or vocational schools within that state during this past calendar year. They must be attended by yourself, spouse, children, or grandchildren before December 31st each year. 

Tax Relief for Property Tax 

If you own real estate, then there may be an exemption program available. Local jurisdictions may not charge property taxes annually because of low-income levels relative to their total asset value. Contact them directly to find out more about these programs in place in your area.

How to Remove Penalties With the IRS

You can contact the IRS directly. Discuss your situation and see what you need to do in order for them to remove penalties. This is helpful if you are working on getting back into good standing with the Internal Revenue Service. You may have simply fallen behind over time due to financial hardships that may be affecting your compliance status.

Installment Agreement

Most people who owe taxes don’t know that they qualify for an Installment Agreement. This is a payment plan where you pay off what you owe monthly instead of all at once. To set up this arrangement, it’s best to call their customer service department. They can explain how much money each month will go towards paying down interest charges as well as past due amounts owed. They can accomplish an installment arrangement online at the official IRS website. Also, you can write a letter with your offer for an installment arrangement. It’s important not to miss any of these payments, otherwise, you will be responsible for additional penalties and fees.

Consider An Offer in Compromise

If your financial situation is not improving or if you do not have a steady source of income to rely on each month, then the next step would be to consider an offer in compromise. This means that they can settle what you owe for less than it’s worth – as long as the Internal Revenue Service thinks it’s fair based on your circumstances. In some cases, this could mean paying nothing back at all! You’ll need to prove that you cannot afford to pay what they are asking for without compromising other important things such as food, shelter, etc. Being honest about being unable to cover those costs needlessly will help your case with them over time.

Wage Garnishing

If you are willing to have your wages garnished for tax relief, then this is another option that can help. They will take a certain percentage of money out of each paycheck until it has repaid the debt in full. Court order usually does this. If they feel there’s no other choice but to do it on their own accord, a court order is granted. This occurs if the taxpayer isn’t cooperating with them – which never ends well for anyone involved when debts aren’t paid back promptly. If you find yourself considering wage garnishment as an option, make sure you seek advice from someone who knows how these arrangements work best, so they don’t end up taking more than they should!

Still, Need More Help?

If you do not qualify for any of the above options, then your best bet is to face an IRS Tax Lien in court. This means that they are taking matters into their own hands because it’s clear that whatever arrangement was made before isn’t working out in their favor. This can be frustrating but necessary when debts aren’t paid back on time. If this happens, know that there are only two outcomes: either pay what you owe or go bankrupt, so at least part of it gets covered by state law exemptions and protections. Neither option is fun, but if all else has failed, then this may be the next logical step left to take!

Last Resort, Bankruptcy

It’s important to note that no matter how much money someone owes to the IRS, they can still file for bankruptcy and have a fresh start. If you owe the Internal Revenue Service back taxes then this is your best option to legally get out of paying what’s owed. It will be discharged through state laws if all else fails – which means that creditors cannot access those funds ever again so long as you follow all of their guidelines after filing. The entire process may seem scary at first, but with an experienced attorney by your side who knows how to navigate these waters there shouldn’t be any major surprises or complications along the way.

Consult With A Tax Professional

If you owe back taxes, then you are likely under enormous financial stress, which is why it’s best to consult with a tax relief professional. They can help coordinate all of these different options for your specific situation. It’s important not to overlook the fact that there are several ways in which this debt can be settled or reduced. It doesn’t have to become overwhelming over time – even if they are strict about what kinds of payment plans they accept! Make sure that you fully understand what’s at stake before making a decision. Get in touch with someone who knows how to make these arrangements work the best for all parties involved.

Would I Have to Pay Upfront for Tax Relief?

There are many taxpayers who feel as though they must pay upfront for tax relief. The truth of the matter is that this isn’t always necessary. If you qualify to receive special treatment then it’s likely because your financial situation doesn’t allow you to handle these costs on top of everything else. This means that if paying upfront will just cause further complications and stress then what sense does it make? What matters most is finding a way out so that no one has to worry about back taxes anymore.

How Long Do I Have Before I Have to Pay IRS Back Taxes?

You typically would have about ten years to pay back taxes owed. You will need to file a return for each year that you owe money and then pay the amount due before filing your next tax return. It is important to note, however, that if there are charges against you in connection with refusing or failing to make payments of any federal income taxes required by law which can be considered evasion or a willful attempt to evade, then the time limit can be shortened.