It’s important for you to file your income tax return on time, even if you cannot pay. The IRS does not take delays lightly, so if you already know that you’re going to have a difficult time paying your taxes in full, you want to start exploring your options for tax relief as early as now.
When it comes to claiming tax relief, you need all the help that you can get so you can organize your paperwork and convince the IRS to possibly lower your tax debt, or agree to a setup where you can comfortably pay your tax debts over time. This is why getting the assistance of a tax professional associated with tax relief negotiations is important.
Getting help
You do not need a tax relief lawyer, you need a tax advocate like an Enrolled Agent to take advantage of tax relief options that the government is ready to provide to help you get your tax debts settled. Because of the ongoing financial crisis, the IRS is now implementing more humane methods and encouraging citizens to pay their income tax, which is why now is a good time as any to start claiming government tax relief.
Government assistance
In response to the ongoing global economic crisis, the Obama Administration has started implementing legislations that serve to ease the burden of tax debts from individuals and businesses that are bearing the brunt of the current crisis. Obama tax relief came in the form of the American Recovery and Reinvestment Act of 2009. The economic stimulus package mainly covered federal tax cuts and social welfare provisions. Obama tax relief was also provided for senior citizens that are earning less than $50,000 annually. Over the next months, new tax relief for Americans options will be implemented so individuals are encouraged to seek the assistance of a good tax advocate like an Enrolled Agent, not a tax relief lawyer so they can take advantage of tax relief programs.
Proper representation
One of the benefits of obtaining tax relief for Americans is that individuals are given access to various negotiation options. With the help of a tax representative, taxpayers can settle with the IRS and provide the agency with a reasonable offer to settle their debts. With tax relief in the USA, citizens can also take advantage of the penalty abatement program being implemented by the federal agency. Unlike negotiated tax settlement, this program provides tax amnesty for penalties incurred due to overdue debts particularly when they were unpaid for reasons beyond the taxpayer’s control.
Qualifications
Not everyone is qualified for claiming tax relief. The IRS has posted a list of requirements to determine whether an individual should be granted relief from paying their taxes. Eligibility for various options is usually determined by the individual’s financial status and their ability to pay. For instance, if the taxpayer is faced with an impending bankruptcy or is a victim of a natural disaster, this is reason enough for the IRS to grant some tax relief. A good example is how the Bush administration reacted in the aftermath of Hurricane Katrina.
Because of the hurricane Katrina, the former US administration has come out with the Bush tax relief for victims of the disaster. The government understood that it was one of those times when citizens are still trying to get their lives back in order so Bush tax relief in 2005 provided over $6 billion in short-term tax relief to taxpayers who needed the assistance. Tax breaks where also provided, allowing more time for citizens to take the necessary actions so they can pay off their tax debts. It provided for a blanket extension for filing tax returns as well as for filing claims for credit or tax refunds.
Classifications
Aside from natural calamities, there are other classifications that are associated with tax relief. The Innocent Spouse Relief, for instance, relieves individuals from tax liabilities and penalties of filing joint returns with their current or ex-spouses. In relation to this classification, there is such a concept as allocation of liability. In this setup, taxpayers file for the allocation of added tax that was not reported on a joint return that spouses typically file together. Finally, equitable relief refers to cases where individuals do not qualify for either the separation of liability relief or the innocent spouse tax relief in the USA.
To determine whether you’re qualified for government tax relief, it’s a good idea to consult your case with an established tax professional. Claiming tax relief is easier when you have someone who knows how to get through to the various IRS programs and wade through the paperwork needed for you to get that much-needed tax problem resolution.
Get tax relief today by contacting the tax firm of Mike Habib, EA at 877-788-2937 or at myirstaxrelief.com