User:CarlenHolder693

Taxpayers can be stressed out when they owe back taxes to the IRS and are unable to write a check to pay off the amount owed. Having a tax bill can be intimidating and the IRS has a reputation for being an evil, monolithic business staffed by heartless, harsh staff who exist to make taxpayer's lives miserable. Luckily the reality is much gentler. While Congress has been criticized for a lack of action on numerous concerns over the past few years it did taxpayers a number of favors by instructing the IRS to setup several tax relief plans to help citizens with genuine problems repaying their tax bills. Regretably the majority of of these relief programs have been given very little press exposure and the vast majority of people who owe back taxes are unaware of the possibilities available to them. The number one blunder made by individuals who owe taxes is disregarding the IRS and hoping that they will go away. Trust us, this never helps. The IRS has a specific mandate from Congress; collect the taxes owed by citizens and corporations. Just because an individual does not reply to a request for info or a tax bill does not mean that the IRS will stop looking to collect. Simply by acknowledging that you received the letter from the IRS will help any future communications from being immediately confrontational. Receiving a notice from the IRS would not guarantee that what the IRS is saying is right. Some reports by third party groups indicate that the IRS has erroneous information or has generated an incorrect decision in close to 20% of the demands for taxes due mailed. Read the notice very carefully and understand what the IRS demand is based on. You normally have up to 60 days to answer to 1st or 2nd requests so be comprehensive in your reply. If you have records and documents to dispute an IRS contention, offer these documents and your response in a clear, even form. Don't be defensive or obnoxious, accusing the IRS of incompetence won't make things any less difficult for you. If you owe taxes, there are options open to you to assist you pay them in monthly installments. Never assume that a payment plan is automatically 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 should be. Don't forget that interest will also be accumulating while you're dealing with the IRS and throughout your repayment period. It is important that you maintain the planned payments and keep all payments up-to-date, being in default on your tax repayment plan takes away all versatility in dealing with the IRS. An alternative chance for tax relief is tax reduction. With cases of personal catastrophe or emergency the IRS may actually lower the amount of the principal due. This process requires a good deal of proof of disaster and how the event or events caused personal and financial damage. This may require you to use a tax professional who will help you to file the proper paperwork required to have the IRS give consideration to your application to lessen your tax bill. However, if your tax bill is substantial the cost of a tax lawyer may well be a great deal less than the amount of tax relief that you end up receiving. While there are no promises of relief when you are working with the IRS, some simple rules do apply that can help your cause. Respond promptly, be professional and polite and truthful, have correct records and make certain that you honor all of the commitments you make. Tax relief can be done but the method calls for perseverance and openness.