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Tax Resolution

The oldest and strongest emotion of mankind is fear,
and the oldest and the strongest kind of fear is fear of the unknown. 
 – H.P. Lovecraft

Tax Relief vs. Tax Resolution

Understanding Tax Debt: Exploring Tax Relief and Tax Resolution Options

When dealing with tax debt, it is crucial to grasp the distinction between two important concepts: “tax relief” and “tax resolution.” For individuals who find themselves unable to meet their IRS obligations due to their current assets and income potential, there may be opportunities to seek some form of tax relief. Tax relief comes in two primary forms: full and immediate relief, or temporary relief. The specific circumstances and facts surrounding each taxpayer’s situation will determine which, if any, of these relief options are available.

Tax Relief Explained

Tax Relief Explained

Tax relief refers to various programs and provisions that aim to alleviate the financial burden for taxpayers who are struggling to fulfill their tax obligations. It is essential to recognize that tax relief does not erase the tax debt entirely, but it may ease the payment process or provide extensions to avoid harsh penalties and interest charges.

Full and Immediate Tax Relief

In some cases, individuals facing severe financial hardship may qualify for full and immediate tax relief. This form of relief is designed for taxpayers who demonstrate that their current financial situation leaves them incapable of repaying the owed taxes in a reasonable manner. Qualifying for full and immediate relief typically requires presenting clear evidence of financial distress and the inability to pay off the tax debt.

Temporary Tax Relief

Temporary tax relief, on the other hand, offers a shorter-term solution to taxpayers who may experience temporary financial setbacks but are expected to recover and meet their tax obligations in the future. The IRS may grant temporary relief through installment agreements or a grace period during which the taxpayer is given more time to settle their tax debt.

Tax Resolution Options

Tax resolution encompasses a broader range of strategies and negotiation methods aimed at resolving tax debt issues. It involves finding a viable solution that suits both the taxpayer’s financial capacity and the IRS’s requirements. Tax resolution options may include:

  • Installment Agreements: These arrangements allow taxpayers to pay off their tax debt in regular monthly installments over a specified period, making it more manageable.
  • Offer in Compromise (OIC): Under certain circumstances, the IRS may accept an offer from the taxpayer to settle the tax debt for less than the full amount owed. This option is available for those who can demonstrate that full payment would cause undue financial hardship.
  • Currently Not Collectible (CNC) Status: If the IRS determines that a taxpayer is facing significant financial hardship and cannot afford to pay their tax debt at the moment, they may designate the account as “currently not collectible,” giving the taxpayer temporary relief from collection actions.
  • Innocent Spouse Relief: In cases where a taxpayer’s spouse or former spouse is responsible for the tax debt, innocent spouse relief can protect the other spouse from being held liable for the unpaid taxes.

Our Process

Our process kicks off with a FREE Discovery Session, designed to help us understand your unique situation. To make the most of this consultation, we schedule it a few days in advance, allowing you time to complete some simple homework. This preparation ensures that we can have a productive discussion about the amount of your debt and your ability to handle it, considering IRS allowances and the various options available to you.

If you’re facing immediate action from the IRS, there’s no need to worry. We can usually put a hold on any impending actions while we conduct a thorough review of your case.

It all starts with a simple phone call. To take the first step in resolving your tax debt, click the link below to schedule an appointment. We’re here to help, and together, we can find the best path forward for your financial peace of mind.

In Conclusion

Understanding tax debt involves familiarizing oneself with the concepts of tax relief and tax resolution. Full and immediate relief or temporary relief options may be available depending on the taxpayer’s financial circumstances. Exploring the various tax resolution options can help taxpayers find a reasonable and sustainable way to resolve their tax debt while avoiding further financial strain and potential legal consequences. Seeking professional advice from tax experts or tax attorneys is often advisable to navigate the complexities of tax debt and choose the most suitable course of action.

Our role, at TaxProEZ is to guide you to the best solution for your specific situation and assist you in reaching the best resolution possible, considering your ability to pay, and the IRS’s willingness to accept the solution.

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