Where to Find Tax Relief

Each year the IRS sends notices for tax bills to thousands of people who file or are required to file an income tax return. This can be a source of stress for many who experience long-term unemployment or other types of financial hardships. Regardless of how the balance came about one common goal for most tax payers is to eliminate or reduce the debt as soon as possible. Here are some ways to get tax relief when you owe the Internal Revenue Service.

1. Partial Payment. After completing the income tax return if the results show that there is a balance due, don't fret. The Internal Revenue Service will accept a partial payment on your account. When submitting the return send it along with payment by the due date. If filing electronically include the bank account and routing number along with the payment amount and date to withdraw the funds.

2. Installment Agreement. After the IRS receives your tax return and initial payment you will receive a notice for the balance due. You can contact them to request an installment agreement by phone. There is a one time user fee, and penalties and interest will accrue until the balance is paid in full.

3. Offer in Compromise. As an alternative to the Installment Agreement you may chose to seek ruling for an Offer in Compromise. This is a viable option for those who have a loss of income and cannot afford to make payments. The Internal Revenue Service maintains a history of your earnings on record and uses information from Forms W-2, 1099 and other forms of income in making their decision. You will be required to complete an application to show exactly why your situation meets the criteria.

4. Penalty Abatement. If your account is racking up penalties and interest then you may find it beneficial to check out the penalty abatement program. This option may stop additional fees from accruing. To meet requirements you must show reasonable cause that you are unable to afford the fees. Some examples of reasonable cause include death, injury, and loss of employment.

5. Innocent spouse relief is an option for married couples where one spouse is responsible for tax debt or a lien has been placed on their tax account. You can request to have the portion of the debt that does not apply to your earnings removed. In many instances, this can eliminate your tax due and qualify you for a refund.

Not everyone will qualify for every form of debt relief tax but if you are experiencing hardships that create a financial strain it is worth the effort to look into these solutions. You can learn more about lowering your tax bill, visit the tax center at http://www.tbsusa.com



Copyright (c) 2010 Benita Tyler
TBS USA is committed to helping small business owners by providing proven financial management strategies to help them achieve their profit goals, minimize tax liabilities, and build wealth. Business advice and tax tips are available at http://www.tbsusa.com