IRS Tax Debt Relief

By: David Petersen Click author's name for more of his/her articles

There are times in your life when you find yourself in tough situations. Problems can come at you in varied and unforeseen ways.
If you find yourself owing back taxes to the IRS or state, you might find your ability to fight back is limited.

Whether you owe back taxes or face a tax penalty because of delinquent taxes, tax evasion etc., you do have options:
* Protection against the loss of your assets
* Prevention of wage garnishment, tax levy, or tax lien
* Protection for an innocent spouse

You can obtain a resolution with the IRS. You don't have to pay the penalty all at once, and can also negotiate an installment plan. You may even be able to have your tax burden reduced. The ability to pay your tax debt for less than the full amount is known as an 'Offer In Compromise'.

The IRS uses what is called 'Reasonable Collection Potential' when assessing your tax debt. The IRS will take many factors into account including:
* Real Property
* Automobiles/Recreational Vehicles
* Bank Accounts/401K’s/IRA’s/Retirement Savings
* Investment Properties
* Anticipated Future Income

As you can see, the IRS will take the time to examine all your assets. Unfortunately, your assets can not only be a bargaining chip for the IRS, but you could potentially lose your assets if a compromise is not worked out.
The first step is to talk with the IRS, and know where you stand.
Of course, the bureaucracy can be atrocious.

There is a process called 'penalty abatement'.
You are allowed to present your case to the IRS in a more personal way. With this option you can express the 'human toll' a tax burden has on you and your family. Extenuating circumstances are taken into account such as a family tragedy, illness, disability or death.

There is another process called 'administrative waivers'.
This would include areas such as natural disaster, misrepresentation, mental issues, unemployment or missing tax documentation.

As you can see, there a number of options available to you. The IRS isn't heartless, but they won't know the true extent a tax lien, levy, penalty or wage garnishment has on your life, unless you inform them.

Because of the complex nature of tax codes and tax forms, most people don't have the knowledge or skills it takes when dealing with the IRS.
If you feel you don't have the necessary ability, there are tax attorneys and tax relief experts who are adept with these type of negotiations.
Your first step is to ask for help!

Article Source: ABC Article Directory

About The Author: Instant Tax Solutions IRS tax debt relief phone: 888-366-1147 Description: IRS tax debt relief negotiation and settlement specialists for the resolution of state and federal back taxes, wage garnishment, tax evasion, penalties and delinquent taxes.