The phrase “tax relief” has been thrown around a lot lately. Is it a legitimate way to help offset your taxes?
Or is it some kind of elaborate scam designed to leave you worse off and possibly even in trouble with the IRS? If you have specific questions about tax relief, call the professionals at Williams Tax & Bookkeeping. In the meantime, check out our run down of the details on this complex issue.
What is Tax Relief?
Tax relief is a very real – and completely legitimate – program offered directly through the IRS. Tax relief is offered for a number of issues, most often when it comes to victims of natural disasters. Most recently, this has meant the implementation of tax relief options for many people, including specific programs for
- Flooding, landslide and severe storm victims in Missouri, Mississippi, Texas, South Carolina, California, Kentucky, Arkansas, Oklahoma, Florida and other states
- Farmers and ranchers with drought stricken lands
- Victims of Hurricane Sandy
- Victims of Hurricane Isaac
- Tropical Storm Victims in Louisiana
These tax relief options often include the victims of these disasters as well as the volunteers and medical personnel who fly in to aid in their recovery. The level of relief varies widely from one program to the next but usually consists of the postponement of filing taxes and special rules on how lost or destroyed documents will be handled. Many taxpayers fnd this type of relief is helpful in resolving issues that arise from late filings as well as destroyed documents they need in order to file.
Another form of tax relief is when a tax preparer or accountant is able to get a reduction in taxes for someone who is in arrears with the IRS. This is the type of tax relief that has become the focus of several investigative stories. Thousands of people have reached out to find a tax preparer able to offer relief only to be scammed out of their money and potentially left with returns that need to be reviewed.
Can Tax Bill Be Lowered?
The fact is there are legitimate ways for people to work with their tax preparer or account to lower the amount they owe with the IRS. These legitimate programs can be accessed once you find a tax preparer for tax relief who understands the law, the programs and which is best for you.
Penalty Relief – Penalty Relief is a program offered for people who are dealing with back taxes as part of the Fresh Start Penalty Relief Initiative. This program is available for taxpayers who meet criteria regarding employment. They need to have been unemployed for 30 or more consecutive days during the tax period or, if they are self-employed, they need to show a certain drop in revenue. The program does not forgive the tax bill itself, but instead reduces or eliminates penalties and interest associated with the bill.
Installment Agreements – For taxpayers who owe $50,000 or less, there are installment options available through the Fresh Start program. Taxpayers can find a tax preparer and accountant to help them determine the amount they owe, develop a reasonable installment plan and then approach the IRS with the appropriate schedule. On the installment plan, penalties are lowered but interest may still be accrued.
Offers in Compromise – The Offers in Compromise (OIC) provision of the Fresh Start Initiative is the most appealing to tax payers since it means they can settle their bill for less than they originally owed. At the same time, the IRS is reluctant to offer this too often and they first examine the taxpayer’s income and assets before they accept any type of Offer in Compromise. For taxpayers struggling with a large bill, however, it can be the ideal solution.
Since these legitimate program exist, some unscrupulous tax firms have jumped on them and hyped them up to be more appealing to tax payers. They build on these true programs and create the illusion that people can simply get out of their tax bill if they find a tax preparer for tax relief that can “work the system”.
The fact of the matter is that there’s no way to circumvent the IRS or a tax bill. The only way to handle it without headaches now or in the future is to find a tax preparer for tax relief and tax planning that understands your situation and how best to handle it while staying within the IRS regulations. This isn’t as difficult as it may seem. An experienced and honest tax preparer will take the time to understand your tax situation in order to find a solution that works. They are able to use their relationship with the IRS and their understanding of tax code to uncover the breaks, deductions, relief and help that is offered through the IRS to alleviate some of the burden from back taxes as well as issues for the current tax year.
If you’ve been meaning to find a tax preparer for tax relief, look no further than Williams Tax & Bookkeeping, conveniently located in Benton. Our team can help you determine what type of tax relief might be best for you in terms of lowering your bill and if you qualify for the text relief options offered for destroyed documents or late filings. We’ll work with you to solve your tax issues today and pave the way for the future.
Williams Tax & Bookkeeping