Can Tax Relief Services Help Reduce the Amount of Debt You Owe to the IRS?

An individual can feel overwhelmed when they find themselves in a stressful tax situation. It is essential to understand that there are some tax relief solutions to help reduce tax debt. Tax relief services work hard to give the fastest, most efficient solutions to clear up tax issues. Tax relief services claim to have experienced tax attorneys and enrolled agents to help in solving tax debts.

tax relief

These companies offer the following services:

Offer in Compromise (OIC)

An Offer in Compromise (OIC) is a pact between a taxpayer and the IRS where the taxpayer settles their debts for less than the amount they owe. Tax relief services, according to, use their knowledge of OIC administrative processes and tax law to help the client avoid paying more money in taxes, penalties, and interest.

Penalty Abatement

Penalty abatement or removal is available in certain situations under exceptional circumstances. The most common type of penalty abatement is due to first-time penalty abatement or reasonable cause. A reasonable cause penalty abatement can be requested by writing to the IRS and stating the kind of penalty one wants to remove.

Installment Agreement (IA)

There is a possibility of paying the tax bill in small installments over time if the individual does not have the money to pay it all at once. Tax relief services check to see if the individual meets the requirements for the installment plan.

Currently Non-Collectible (CNC)

An individual can qualify for Currently Non-Collectible (CNC) status if their gross monthly income is lower than the national standards for allowable expenses. Essentially this means that the IRS is aware that the individual is not able to pay the tax debt. Tax relief companies help clients claim CNC status to be insulated from bank levies, wage levies, and other ways the IRS will use to collect taxes owed.

Tax Audit Appeals

A person can appear before the IRS Office of Appeals to contest an audit recommended by the IRS that they feel is inappropriate or incorrect. Most disputed IRS audits are settled when one initiates an appeal. The IRS does not want to litigate issues due to fear of losing time, expenses, and the risk of unfavorable outcomes.

Innocent Spouse Relief

Tax law in 1998 made it easier for a spouse to be exempted from tax liability and penalties when the returns are jointly filed. Someone can receive tax relief if they can prove that they were unaware of the considerable understatement of tax or income when signing a joint tax return. An individual must know about and qualify for the setout guidelines that make it possible to receive tax relief caused by the actions of a current or former spouse.

What is the Best Tax Relief Program?

The best tax relief program is one that the individual qualifies for based on their financial state or tax problem. Not all options are appropriate for everyone; the amount owed and why someone owes that amount determine which program suits their situation. The program with the most success is the IRS Installment Agreement due to its high acceptance rate.

Does Tax Relief Really Work?

Penalties, levies, and wage garnishments can be stopped by tax relief services, payment plans, or debt reduction, making it possible for a taxpayer to walk away from serious tax debt. There are serious consequences that can bring down an individual if they choose to ignore the tax issues they have instead of looking for available relief.

How to Qualify for Tax Relief?

Any person who owes unpaid taxes for whatever reasons can qualify for tax relief. When one applies for tax relief services, the IRS may be willing to reduce, forgive, or spread out their debt. The only requirement is that the individual has to have all their returns filed to qualify for tax relief services. If you are always prompt, this will not be hard to achieve.

Why Seeking Tax Relief Solutions Right Away Is Important

Individuals find that tax relief solutions help protect them from high-interest charges and penalties. People can prove that they are not legally liable for the tax debt.

In sum, tax relief allows the individual to break down their debts into manageable payments or reduce the amount of tax paid to the government. The tax relief does not clear the individual’s tax bill and may cost more with time. However, it makes paying what one owes to the federal government a lot more manageable.

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