People facing financial difficulties may find that there’s a tax impact to events such as job loss, tax forgiveness, or tapping a retirement fund. For example, if your income decreased, you may be newly eligible for certain tax credits. Most importantly, if you believe you may have trouble paying a tax bill, contact Practical Tax Solutions immediately. In many cases, there are steps we can take to help ease the burden.
Having the heat of the IRS on your back is never a great experience. The unrelenting pressure of the federal government can be incredibly stressful and often intimidating, making back tax relief seem nearly impossible to achieve. Taxes are complicated. There is no “one size fits all” solution for everyone. Eventually, you will need to deal with your tax issues. In most cases, tax relief is provided through approved payment plans and/or tax settlements. The key is to act swiftly.
Under IRS hardship rules, if a person would face unfair financial hardship after the collection of their outstanding taxes, they may be able to qualify for an “Uncollectible” status, walking away from any obligation to pay your taxes back. Once declared currently not collectible, the IRS cannot take your paycheck or property in lieu of tax payment.
The IRS takes many things into consideration when determining your eligibility for any of its tax relief programs. This includes your ability to pay, current income and expenses, as well as your assets. If you wait too long, the IRS may take other measures, such as garnishing your wages or placing a lien on your property.