How Does Tax Relief Work?
Do you have tax bills from IRS this year? Well, you are not alone. According to a government study 21% of tax filers may not have had enough taxes withheld in 2019.
What happens if you owe Uncle George and you don’t have enough to pay the bill? If you find yourself in such situations, no need to panic. The IRS has many tax relief options available that could benefit you.
Talking to a CPA Westwood can be of help since they know everything about tax relief. Tax relief can allow you to break down your debt into payments or reduce the amount of tax you pay to government.
No, tax relief won’t wipe out tax bill- and it can cost you more in the long run.
What’s Tax Relief?
Tax relief means setting up payment plans or negotiating settlement with the IRS. It isn’t about erasing tax obligation. Rather, it is about making it hassle-free to care of the tax debt you owe.
Natural disaster victims, like wildfires, hurricanes, are sometimes offered tax relief. The right firm can assist you regarding this.
Disaster victims often qualify for deadline extensions and may be eligible to claim casualty losses on federal income tax return.
How To Get Tax Relief?
When it comes to strategies for managing taxes you can’t afford to pay in full when they are due, you have many options.
Here are some methods to check out:
• IRS Repayment Plan
The IRS may allow you to break down the full balance into small payments. To qualify for long term payment plan, you must owe $50,000 or less combined in penalties, taxes and interest.
For short-term payment plan of 120 days or less, the tax bill can be high as $100,000. Though IRS payment plans may be helpful if you don’t have funds to cover the tax bill in full.
Depending on the option you choose, you may pay setup fee of $149 as well as penalties and interests.
• Offer In Compromise
If struggling to pay full tax bill, the IRS may allow you to settle the tax debt for less than you owe through what you call as the compromise.
While reviewing an application to offer in compromise, the IRS will consider factors like:
•Your ability to pay
•Your expenses
•Your income
•Your assets
Talk to an expert offering tax services Westwood to see if you qualify to settle tax bills for less.
Finally, remember, trying to hide from tax bill won’t help you. As interest and fees pile up, you’ll make tax problem worse by trying to ignore it.
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