With tax season in full swing, many people feel pressured to file their returns and meet their tax obligations. However, relief options may be available for those struggling with tax debt.
This article will explore six tax relief options and how a lawyer can help.
1. Installment Agreements
An installment agreement is a schedule of payments that enables you to pay off your tax debt over time. A lawyer can help you negotiate a payment plan that works for your budget and ensure that all necessary paperwork is completed. They can also help you address any issues that may arise during the payment process, such as missed payments or changes in your financial situation.
2. Penalty Abatement
If you've been hit with fees, penalty abatement may be an option. A lawyer can help you demonstrate to the IRS that your circumstances justify relief from penalties. They can help you prepare a strong case that outlines why you could not comply with tax laws and request a reduction or elimination of the penalties.
3. Offer in Compromise
The settlement agreement known as an "offer in compromise" lets you settle your tax liability for less than the amount due. An attorney can assist you in negotiations with the IRS to reach a fair compromise and ensure that all paperwork is properly filed. They can also help you understand the tax implications of accepting an offer in compromise and advise you on the potential risks and benefits.
4. Innocent Spouse Relief
If you and your spouse jointly filed a tax return, but they failed to report income or claimed false deductions, you may be eligible for innocent spouse relief. A lawyer can help you demonstrate that you had no knowledge of your spouse's actions and should not be held responsible for their tax debt. They can also help you navigate the complex legal requirements for obtaining innocent spouse relief and advocate on your behalf during the application process.
5. Tax Lien Release
If the IRS has placed a lien on your property due to tax debt, a lawyer can help you negotiate a lien release. This can improve your credit score and make selling or refinancing your property easier. A lawyer can also help you understand the legal requirements for lien release and advocate on your behalf to ensure the release is handled correctly.
6. Wage Garnishment Release
If the IRS is garnishing your wages to pay off tax debt, a lawyer can help you negotiate a release of the garnishment. This can help you regain control of your finances and avoid the negative consequences of a wage garnishment, such as difficulty paying bills and reduced take-home pay. A lawyer can also help you understand the legal requirements for wage garnishment release and ensure that the release is appropriately handled.