It can be difficult to keep up with tax payments, especially since 43 states impose an income tax. In addition, the Revenue Act of 1861 adopted the first federal income tax. An Irs tax problem is a serious matter that should be handled immediately. Since the IRS has the legal right to levy your property, it is important to stop this before it happens. Fortunately, by law, the IRS must notify you before they levy your property, and they will provide you with the opportunity to negotiate it. You can get help with income tax problems you have, as many options are available to counter the IRS levy.
1. Offer in compromise. This is one of the most common tax problem solutions, as it has proven to be beneficial to those who pursue it. This method allows you to pay the IRS less than what you owe. The IRS will take into consideration your financial hardships, including your income, expenses, and asset equity. Although this can be a time consuming process, it can be helpful to those who find it difficult to pay their original balance in full.
2. Installment agreements. There are many installment agreements available, including stair step, conditional, and streamline. While all require different qualifications, they all utilize the same general method of payment. With an installment agreement, monthly payments are made to the IRS in order to resolve the debt.
3. Penalty abatement. This is similar to an offer in compromise in that you must show proof to the IRS that there is reasonable cause for you falling behind on your payments. In addition, you must also prove that you are working towards resolving your debt. By doing so, the IRS may agree to dismiss some of your penalties.
It is important to get help with income tax problems that you may have. It can be difficult, though, as the negotiation process is sometimes confusing. For example, the 1040EZ form has 33 pages of instructions, and eight billion pages of forms and instructions are sent out every year by the IRS. An IRS tax attorney can help with income tax problems that you are experiencing, as well as help you manage the copious amounts of paperwork. By doing so, you can get out of debt with the IRS once and for all.