Back Tax Relief: Help With IRS And State Taxes

Back tax relief is available for taxpayers that are behind or owe taxes to the government. Although being in this situation is stressful, it doesn’t need to ruin your life. There are programs that can help you with your back state and federal taxes. Here are a few tips that can help you.

Filing Late Returns

Even if you haven’t filed your taxes in some time, you can get out of hot water by simply filing them. You can generally file the taxes and then request an installment arrangement to get caught up with unpaid taxes. Get all of your documents together and set aside some time to sit through the process. You may require more than one or two sessions, so plan accordingly. Ignoring your taxes will only make things worse.

Ask for Installment Arrangements

You will need basic information and time to file for payment arrangements. Additionally, with the IRS, you will need to fill out form 9465. You can find the form online. For the state, you will need to contact your local tax office to find out about their arrangment processes. The IRS will charge an amount between $45-$105 to set up the payment plan. The payments will be deducted out of your checking account on the same day every month. It can take up to 30 days to hear back about your request, so be patient.

Offer-in-Compromise

The offer-in-compromise plan will give you three different options for payment. You can make a lump sum payment, payments over a 24 month period, or monthly payments over the remaining statute of limitation for collections. To qualify for this you will need to make a down payment of at least 20% of the overall amount owed. You will need to fill out form 656 with the IRS to request this.

It’s important to note that many tax preparers will offer this service even if you don’t qualify for it. The IRS has been cracking down on this and on people who have abused it in recent years. Make sure you actually qualify for this program and go directly through the IRS for this. This will help you avoid getting caught up in these crack downs.

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