Tax Relief

Tax Relief

Are you having problems with settling all your tax debts? If so, you might want to avail of any of the tax relief programs provided for by the IRS. A tax relief is a negotiated solution to your tax problem and possible reduction of the entire tax amount, penalty and interest. It is a form of help from the Government so the taxpayers, be it individuals or companies or corporations, may still be able to pay the tax that is needed to sustain the Government’s needs without such taxpayer suffering penalties from non-payment of taxes. It is a form of compromise where you, as a taxpayer and with back taxes, will promise to pay a possible lesser amount to the IRS instead of the whole amount, and where the IRS will not penalize you or charge you with interests and accept your payment as sufficient.

So what are the different tax relief programs that the Government provides? There is property, personal, business, and housing tax relief. You could also avail of the disaster tax relief program if you have experienced a natural disaster or calamity in your area, or even a financial crisis. However, before you could qualify for this kind, your place or area must first be declared by the Government to be in such a state. There is also an available tax debt relief for taxpayers who are insolvent and cannot, in any way, produce the money to settle their tax obligations. There are other tax relief programs and the best way to know which among these programs you are qualified to apply for is to consult with a tax professional that has an in-depth knowledge on these matters. Such tax professionals will assist you and make your application for tax relief successful, than if you will do it by yourself, particularly because there are many requirements to submit and papers to be produced. However, you must remember that a granted tax relief will not eliminate your tax obligations; instead, it will just make it more affordable for you to pay what you can based on your ability to pay. This is a common misperception of people about tax relief.

There are many tax relief laws. An example of this is the Taxpayer Relief Act of 1997 which reduced different federal taxes of the United States. Another is the Mortgage Forgiveness Debt Relief Act of 2007 which intends to prevent the canceled debt or the forgiven death by a creditor from being treated as taxable income. Just this April 2010, the Legislature of California passed a bill involving housing-crisis California tax relief. This bill is intended to aid homeowners, whose homes and family dwellings were foreclosed, or those who cannot pay anymore mortgages on their homes and had sold it for less than what they still owe their creditors. These kinds of bills and laws are very much needed these days, because of the financial crisis that the whole world has experienced. It will definitely help taxpayers in their responsibility as citizens in assisting the Government and in turn, the Government will be able to collect the needed money to fund their projects.

Keywords: tax relief, tax debt relief, IRS tax relief