Low-income taxpayers can be exempted from the down payment. To determine if you qualify for a tax relief through a commitment offer, the IRS considers your ability to pay, your income and expenses, and your amount of assets. Here are four common options that could help you find some tax relief, plus guidance on how to file back taxes and for how many years you can file back taxes. The IRS often doesn't know what tax deductions or credits you might have qualified for, making the bill higher than what you could have received if you had done it yourself.
If you need more time to pay your tax bill, the IRS will likely give it to you in the form of a payment plan. Since debt forgiveness from the IRS is an official way to establish a debt consolidation plan, this will be best seen on your permanent record. You can apply for CNC status by contacting the IRS directly at the number on your tax notice or bill. This type of program was designed as a way for the IRS to maximize the collection of the amount of tax money owed to the government while making it much less difficult for the taxpayer.
If you're on the wrong side of the IRS, you might be lucky if you qualify for their IRS tax forgiveness program. Tax debt forgiveness will be calculated according to your unique circumstances, along with a payment plan. However, correspondence with Uncle Sam may not be as fun if you owe money to the IRS, especially if you can't pay your tax bill. IRS debt forgiveness applies if the taxpayer can allege extreme financial hardship and if all previous tax returns have been completed.
Companies like Ideal Tax can help with OIC which is one of a few IRS fresh start programs. An offer in compromise is one of the ways that the IRS has devised to collect the amount of late or late tax payments owed by taxpayers. When taxes are late or late, usually from previous years, they are called back taxes. You will be given an IRS debt forgiveness plan to pay the full or modified amount in a lump sum or in installments. That fee could be higher than what you would end up saving on your tax bill if the IRS accepts your offer in a transient manner (and it may not be refundable if the IRS rejects your offer).