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Every year in Spring the IRS or the Internal Revenue Service comes looking for your share of taxes, as some people rightly say, there are two things certain in life which are death and taxes. However, there is a way using what is called debt relief to slow the debt caused by your taxes and even have a part of all your debt written off by the taxman. In this article, we will explain to you what IRS Debt Relief is, how it works and how here at Tax Shark we can help you with any problems you may be experiencing with the IRS and tax in general.
What is IRS Debt Relief?
Tax debt can quickly pile up if you have not been paying your state and federal taxes due to negligence where you have not been calculating what you owe correctly, or like the majority of people not being able to afford to pay the tax they owe in full and also pay for rent and other essentials.
The IRS has a program that helps individuals stabilize their financial situations. It can space out the repayment dates and lower the amount you need to repay each month. It can also if the tax debt has got so large that it is unrealistic that you will ever pay it off it is possible not negotiate and partial or even full tax relief. The reasoning for this by the IRS is to allow you to improve your situation and make sure that in the future you pay everything you owe in time.
It is also important to know that the IRS estimates everything you owe them so it is possible that they may have overestimated your taxes which will mean that you will qualify for a partial tax debt relief.
How does it work?
You need to get in contact with the IRS and ask for an appointment so you can negotiate a new payment plan that works for you or ask to have some of the tax debt written off since you are not able to realistically pay it off. According to recent statistics, Americans fail to pay over $458 billion worth of owed taxes to the federal government every single year which is why the IRS and the government are willing to lose some tax that is owed to them rather than not receive any tax.
The IRS will generally be happy to write off tax debt if you are retired and thus not in a position where you can easily get a full-time well-paying job or have serious illnesses or disabilities that prevent you from working.
Our company has been assisting people with IRS debt relief in Sacramento for decades, and we can help you know how you can qualify for IRS debt relief.
Do I qualify for IRS Debt Relief?
People who qualify for IRS Debt Relief:
– Retired and elderly people who have no realistic prospect of finding a full-time job
– People suffering from disabilities and illnesses that prevent them from working
– People who are working but based on their current income will not be able to pay off their debt ever
– Single parents that are not able to hold a full-time job that earns them enough money to pay of their tax debt to the IRS.
If you are still not sure if you qualify you can contact us at Tax Shark and we will analyze your current situation and get back to you.
Factors that will affect how much of your tax debt is written off
– Your age will be a big factor, the older you are and closer to the retirement age the more likely is that you will receive leniency from the IRS as on average retired people earn less than people in full-time employment.
– The IRS does not only take your income into consideration but they also look at the value of your belongings, in particular, the property you own. The IRS may refuse to offer you tax debt relief if selling your property could pay off the debt. Alternatively, from selling the property the IRS could recommend that you mortgage it at least partly in order to raise fund, for example, take out a mortgage of 25% on the total value of your property.
– Your financial position will also play a very big part in the consideration of the IRS in whether they would give you tax debt relief. If you are in a bad financial position the higher the chances are that you will qualify for some sort of debt relief from them.
– Where you live will also play a big factor, as there is a big difference in the living costs in different areas in the USA with places such as Sacramento being on average much more expensive to rent in.
– If you have had other separate debt relief from the IRS in the past 5 years it will mean that the IRS will be more wary of giving you more chances as you are a high risk of again falling behind the taxes you owe to the federal government.
Types of Installment
Unfortunately, not everyone is lucky enough to qualify for a partial or full debt relief from the IRS. However, the majority of people will be able to negotiate the monthly installment payments they are required to pay back to the IRS.
Negotiable Instalment Terms:
– There is an option where you agree to alter the amount of money you have to pay monthly every year depending on your financial situation. This can be quiet good to help you stay on top of your tax debts and puts the pressure off you.
– You can reach an agreement with the IRS that for examples halves the amount of money you pay back to them a month but you have to pay them back for double the months. An agreement like this will again put the financial pressure off you and allow you to pay what you can afford.
– There is also another option known as a ‘Partial Payment Installment’ where there is no calculated amount on how much you have to pay back the IRS each month but instead, you have to pay back whatever you can afford each month with a minimum of $25 a month until you have paid off your debt to the IRS no matter how long it takes you. This is one of the most flexible agreements and it allows you to pay more or a bit less each month.
How Tax Shark Can Help a Prospect with IRS Tax Debt
Tax Shark is made up of experienced and qualified tax experts that can do all the negotiations for you and increase your chances of success of having your IRS Tax Debt renegotiated to more manageable payments as well as increasing the chances of your tax debt is partly or fully written off.
Tax Shark serves hundreds of customer in Sacramento and all over California, we help prepare, plan and resolve issues that our clients have with the IRS in a professional, fast and cost-effective manner.
Tax Shark – Tax Relief – Sacramento is located on 500 Capitol Mall, Sacramento, CA 95814. From Sacramento International Airport (SMF) head north on Airport Blvd and keep right to continue on Airport Blvd E. Then keep right to continue on Aviation Dr and continue onto Crossfield Dr. Next, turn left and merge onto Airport Blvd. After that merge onto I-5 S via the ramp to Sacramento and merge onto I-5 S. Head straight for 9.6mi. Take exit 519A toward Q Street and continue for 0.5mi. Turn left onto 5th St. In 0.3mi Tax Shark – Tax Relief – Sacramento will be on your right. We are open 9am-5pm, Monday-Friday. For additional questions you can call us at (916) 542-9244.