The term tax bracket refers to a range of incomes that are taxed at a specific rate. The tax brackets for 2022 have not changed in comparison to the...
Compare these recommended tax relief companies to find the one that is best for you. You can navigate through the information we provide to find the best tax relief solution for your situation.
Find the top tax relief service companies that can help you work with the IRS to sort out the best possible solution.
The IRS is a complicated and often unforgiving agency. Many taxpayers find themselves perplexed when tax season comes around and they discover new problems they’ve never dealt with before. While it might feel bad if this describes your situation, remember you’re not alone!
The best tax companies often help their clients navigate the IRS and come to the best solution. When you hire a tax relief company, Certified Public Accountants (CPAs), enrolled agents, and certified tax lawyers will look over your situation. These professional teams are equipped to represent you and assist you to take advantage of all the rights and resources afforded to you.
According to the US Government Accountability Office (GAO), 21% of Americans owe money to the IRS. These are taxes that were partially or fully unpaid during the year they were due.
You cannot erase your tax obligations or the amount you owe. But you can reduce your tax burden by taking advantage of all reductions, credits, and tax forgiveness options possible for you. IRS programs allow you to decrease your tax bill under specified circumstances. Learning about tax relief can be daunting; we have tried to simplify it below.
Tax relief companies usually provide a wide range of benefits such as protection of assets and income, interpreting tax laws as well as stopping tax liens and levies. The following links could help in having a clear idea about some of the best tax relief companies.
If you’re having trouble paying the IRS in full by the due date, there are a few IRS tax relief options. It is important to review each of the tax relief companies to ensure that they are capable of helping you in the ways that you need. These are some of the most popular avenues for you to consider.
An “offer in compromise” is a kind of negotiation with the IRS. The program was made for people who are struggling to pay their full tax liability. If you’re unable to pay or would induce financial hardship, it’s a legitimate way to settle your tax delinquency for less than what you owe.
The IRS considers several factors for Offers in Compromise:
To make sure you’re eligible, all required estimated payments and tax returns must be made along with the application fee. You’ll also need to fill out a Form 433-A (individuals) or a 433-B (businesses). Lastly, you’ll need to file a Form 656 along with all necessary documentation.
Another option you have is an IRS repayment plan. This allows you to break down your full tax liability into several payments. You can do so to make your payments more manageable while avoiding levies and garnishments. But you’ll still have to pay interest and penalties for being late until your balance is settled. The IRS allows repayment plans of two types.
Short-term repayment plans involve payments made over the course of 120 days. They are only available to individuals, not businesses. You can arrange a short-term repayment plan if you personally owe the IRS $100,000 or less.
A long-term repayment plan is paid back in over 120 days. The most you can owe to be eligible is $50,000 in taxes, penalties, and interest.
Taxes can be enough pain on their own. But sometimes you will also pile up penalties and interest that you need relief from.
Penalty abatement is a form of tax relief meant for those with special circumstances that have led to an inability to pay taxes. This can include natural disasters, hospitalization, or any uncontrollable circumstance. Any of these things would be seen as a “reasonable cause” penalty abatement.
If it is your first time facing penalties and interest, there is also a first-time penalty abatement. This is the most widely available type of IRS waiver. If you don’t have a track record of tax penalties and have not filed your taxes on time in the past, the IRS may qualify you for first-time penalty abatement.
The IRS Fresh Start Program covers the debt relief options that are offered by the IRS. This program offers different levels of relief and payment depending on the applicant. The program encourages reasonable partial payment over complete avoidance of penalties.
The IRS ‘Currently Not Collectible’ Status (CNC) is when you agree with the IRS that you owe them but can’t make your monthly tax payments due to your current financial situation. This program works for anyone who has shown hardship and apparent economic status and can last for up to two years.
Tax deductions are deductions that lower a person’s liability by reducing their taxable income. If a taxpayer decides to utilize their tax deductions, they will lower their taxable income, which in turn lowers the amount of tax owed.
Tax credits refer to the amount of dollar-for-dollar value that the taxpayer is allowed to subtract from the income owed. Tax credits reduce the amount due, not just the taxable income. The nature of the credit mainly determines the value of the credit tax.
Tax benefits refer to the law that allows taxpayers to reduce their tax bills once they satisfy certain eligibility requirements. This usually means that as a taxpayer you are allowed by the law to deduct some amount such as the amount incurred while earning from your income.
If you need tax relief help of any kind, some people find it much easier with one of the best tax relief companies. They will guide the harrowing and complex process of tax relief.
Tax relief companies are staffed by licensed professionals who know the IRS inside and out. While there are useful tax relief resource guides that are available to assist you to navigate, the maze that is the IRS is their backyard. Also, if you’re unsure of whether you want to apply for their services, the best tax relief companies all offer a free consultation. Normally they can determine which tax relief services you qualify for after a free consultation and financial analysis. From there, they can walk you from start to finish, for a fee.
The IRS can be hard to deal with. If you’re being audited or don’t want to communicate with the IRS, tax relief companies can guide you through the process or even communicate with the IRS on your behalf.
We believe the key is to find the right tax relief company for you. While there are excellent tax relief companies, there are also some businesses that make unreasonable promises to solve all your problems and eliminate your entire tax bill in exchange for an upfront payment. So, how do people know who the best tax relief companies are?
Below are some potential signs that a tax relief company may be trying to scam you:
The complex rules surrounding the IRS can change every year. The jargon the IRS uses normally doesn’t make life easier for the average taxpayer.
For some people, hiring a good tax relief company simplifies the tax relief process. It brings it back down to earth for them and enables them to better take advantage of their IRS relief options. Here is a list of some of the most important benefits of tax relief companies:
Wage garnishment and asset seizure are two major ways the IRS collects on what they’re owed, but they’re avoidable if you know what your options are. Many people approach a tax relief firm to get finding the best options if they’re unable to pay the amount they owe.
Tax specialists are often asked to prevent or stop tax liens and levies by diving into specific IRS collection cases.
They often can interpret tax laws many of us don’t have the time to learn and explain the complexities and processes involved and find the best solution for your specific tax situation.
In addition, It is common that they step in as tax representatives to help protect and negotiate on the client’s behalf.
The ultimate services that are offered by a tax resolution company that may be of help to a taxpayer may include:
Tax resolution companies are here to provide help with the IRS. Do not deal with this alone.
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