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Tax Relief Indiana:
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What Are the Tax Relief Options From IRS?
Properly resolved tax relief options is a win-win solution for both the IRS and the taxpayer. When a tax relief option is applied to the IRS correctly, the method used can increase the revenue that the IRS collects and provide that taxpayers with an incentive to have their taxes paid in full and remain current with the IRS.
Below are eight of the main tax relief options that are available to all taxpayers. These options work best when a taxpayer hires a tax attorney in Indiana to make sure the forms are filled out correctly, so you can get the best result available for you, and the right method to settle your taxes with the IRS.
Tax Relief Option 1: File or Amend Past Returns
An amended return is often overlooked as an option for tax relief, or even filing a return after the deadline if you forget to file. When you do your taxes yourself there are often deductions that are overlooked, as well as exemptions and tax credits. If you have forgotten to file your tax return by the deadline, there is the possibility of the IRS filing one for you and they will apply minimal exemptions or deductions.
By hiring a qualified and professions tax attorney, we can find all tax dollars that you missed when preparing your tax return to the IRS.
Tax Relief Option 2: Payment Plans or Installment Agreements
Payment plans and installment agreements are one the best methods to take when you are looking for a tax relief option. This would be one of the best methods since you would more likely be qualified for a payment plan.
The IRS considers a taxpayer the sets up a payment plan or installment agreement as a tax complaint. This means that you won’t have to worry about any IRS letters, phone calls, or tax liens.
Tax Relief Option 3: Offer in Compromise
The benefit or applying for an Offer in Compromise also called an OIC, is that it reduces the amount of money you owe the IRS. To qualify for an OIC you need to have limited assets in which wouldn’t add up to the amount of debt to pay your taxes in full. Another item to help you qualify is that your income is not large enough to pay the tax debt balance within a two-year period.
Lastly, you can qualify if your tax returns are up to date, as well as your estimated tax payments and deposits, and you cannot be in an open bankruptcy.
Tax Relief 4: Penalty Abatement
In the situation in applying for a penalty abatement, the taxpayers that may apply for this type of tax relief are first time offenders. What this tax relief method does is reduce or remove your tax penalty that has accumulated on your tax return.
There are only certain circumstances when a taxpayer can request a penalty abatement from the IRS. It is extremely hard to get the IRS to forgive penalties, but with the right tax attorney, this may be an option that they can fight for on your behalf. A penalty abatement, if approved, can remove all or some of the penalty that has accumulated on your return. Your local Indiana tax attorney can make sure that the proper forms are filled out correctly to get the IRS to consider this type of tax relief.
Tax Relief Option 5: Currently Not Collectible
This tax relief solution is only a temporary solution to a taxpayer’s situation. what this tax relief option does is pause any collection activity, and the IRS will not submit any tax liens or tax levies.
For a taxpayer to get this type of tax relief they must prove that they don’t have the finances to pay their taxes. If accepted the IRS will agree to give your account a “Currently Not Collectible”, also called a CNC, status.
Tax Relief Option 6: Innocent Spouse Relief
The innocent spouse relief, tax relief is when your hit with a tax penalty, or payment, due to your spouse or former spouse being assessed by the IRS for additional taxes because of the mistake of underreporting on their tax return.
Tax Relief Option 7: Statute of Limitations
This is a tax relieve option where if you have no income or assets to pay off back taxes. If the situation is unlikely to change before the statute of limitations ends and its been 10 years, the IRS loses that right to collect back taxes.
However, the clock starts once you file your tax return, so not filing is not a good strategy to apply for this type of tax relief. An offer in compromise and CNC status on your back taxes can extend the 10-year statute of limitations.
Tax Relief Option 8: Remove a Federal Tax Lien Notice from Your Credit Report
If a tax lien was placed on your credit report, this tax relief method helps remove that lien off your credit score, so you are able to sell the property, apply for new loans and more without credit companies seeing that a lien use to be on your report. In most cases, before this option was added to the tax relief list, a lien would stay on your credit report for 7 years. A lien still creditors that you owe the IRS money, and the IRS has first dibs on your property and assets. Removing a tax lien from appearing on your credit report will improve your credit score.
What You Should Know About Hiring a Indiana Tax Attorney
The main reason that you should hire a tax attorney instead of facing the IRS by yourself is because dealing with the IRS can be a daunting and frustrating experience. A tax attorney will make sure that your filling out the proper forms to help you get the best offer from the IRS for any of your back taxes and get a settlement you deserve.
A tax attorney in Indiana can help you figure out which option your most likely to get due to your situation so you can settle your tax debt with the IRS. If you give the IRS incorrect information they can use it against you.
What Is the IRS Fresh Start Program?
The fresh start program helps tax payers to avoid the invasive process that the IRS goes through to get a taxpayer back taxes. Instead of the IRS sending out letters you can set up a payment plan that can be paid over a maximum of 6 years, to pay off you back taxes with the IRS.
Want to Know Which Tax Relief Option Your Eligible for in Indiana?
Where none of the alternative tax relief options are easy solutions, or easy to apply for, they are always worth while. With an Indiana tax attorney, you will have a better chance of fighting your case to get the best offer to help get you a fresh start and pay you back taxes. Call The tax Attorneys at Sheppard Law Offices today to help you get the tax relief you deserve.
Contact Sheppard Law Offices
Sheppard Law Offices proudly provides tax and debt relief solutions to clients across Indiana, including Indianapolis, Louisville, Fort Wayne, Lafayette, Bloomington, Columbus, Evansville, Oak Park, Terre Haute, Evansville, Lawrence, Connersville, Delphi, Elkhart, Evansville, Fishers, Gary, and more.