Income tax that is not paid in full leads to penalties being charged to the tax payer, which, in turn, makes paying taxes even more difficult and can force the individual further into debt. Tax debt relief services are used in order to help these individuals and businesses who are in need of financial support. Tax debt relief services can reduce the amount of tax debt owed.
Through tax debt relief services, tax payers can negotiate a settlement offer until a reasonable amount is reached with the IRS. The main aim of these services is to ensure the IRS receives a portion of the money owed on the non-collectable account in a way that incurs the lowest costs to the government. The tax payers also receive higher tax returns than they otherwise would. These tax breaks can be granted at local, state and federal levels.
There are various types of tax debt relief services available in order to take advantage of the penalty abatement program offered by the IRS. These programs are different from a negotiated settlement where tax payers ask the government to take back penalties charged to an overdue account. Tax debt relief services are open to tax payers who come under one of the following four categories:
- They have suffered from an illness or even death
- They are claiming for statutory exemption including in the case of a change in tax laws that directly affects tax payers
- They been subject to a personal disaster (such as unemployment) or experienced a natural disaster
- They are claiming a mistake made by the IRS in filing the tax payers return
If you fall under one of the above categories, tax debt relief services could be one of the best options to deal with your income tax debt. While this option does not eliminate debt completely, it is supported by the IRS and can make paying taxes manageable.