WHAT TO KNOW ABOUT THE IRS ONE TIME FORGIVENESS PROGRAM

When you owe the Internal Revenue Service (IRS), you may wonder whether there is a way to avoid accumulating penalties and fines. Besides that, you may want to invest but fear that your tax lien will damage your financial credibility.

Luckily, the IRS offers a One Time Forgiveness program to help people deal with tax liability. Using this initiative, you can evade the negative consequences of owing taxes. You may also get enough time to organize your finances and repay the debt without causing significant financial problems.

Read on to discover several things you need to know about the One Time Forgiveness program. We will also explain how you can determine the most suitable tax relief program based on your needs and financial status.

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How Many Options Does the One Time Forgiveness Program Have?

The IRS offers several options under the IRS One Time Forgiveness program. These include Innocent Spouse Relief, Installment Agreements, and Currently Not Collectible. Innocent Spouse Relief allows you to avoid paying penalties, taxes, and interests if your current or former spouse provided wrong information when filing back taxes.

For instance, if they did not disclose some of their income sources, which led to a penalty, you may apply for relief. This initiative is applicable if the IRS can only collect the amount due from the spouse. Besides that, you can only qualify if:

The penalties are from self-employment taxes

You can prove you did not know about the inaccuracy

You and your spouse have not transferred money in a fraudulent scheme

Sometimes, your financial situation may make it very challenging to pay the taxes you owe. In such a case, you may apply for a Currently Not Collectible status. In case you qualify, the IRS will stop penalizing your debt and refrain from collection activities.

An Installment Agreement is a tax forgiveness program that allows you to repay your debts with a schedule. If you cannot remit the entire amount due to various issues and owe a debt of less than $50,000, you may benefit from the initiative.

Offer in Compromise (OIC) Tax Relief Option

OIC is a One Time Forgiveness relief program that is rarely offered compared to the other options. This initiative is an ideal choice if you can afford to repay some of your debt in a lump sum. Once you qualify, the IRS will forgive a significant portion of the total taxes and penalties due.

They will then provide a payment schedule allowing you to clear the remaining amount in installments. The payment period is usually a maximum of 72 months, whereby the IRS will require you to remit a specific figure without fail or delay for the entire period.

How Does One Time Forgiveness Work?

The One Time Forgiveness program you qualify for will mainly depend on your financial situation. However, determining the most suitable option may be challenging without professional help. It is advisable to consult with a tax resolution expert before applying for any relief program. By taking this step, you enhance the chances of qualifying and ensure you provide the IRS with correct information.

Once you apply for the IRS One Time Forgiveness program, the IRS will assess your situation and evaluate eligibility. If they accept the application, they will provide a detailed repayment schedule.

Depending on the program you chose, you may send the amended debt in installments or a lump sum. The IRS will also require you to remit all your taxes within the stipulated time moving forward. Other than that, they may perform periodic assessments on your financial status as needed.

Contact Advance Tax Relief to Apply for Debt Relief

Each option in the IRS One Time Forgiveness program has several qualifications you must meet to be eligible. Unfortunately, gathering all the details you need to apply for this initiative may be frustrating if you do not have extensive knowledge about taxation.

At Advance Tax Relief, we offer professional tax resolution services to help you deal with debt. Our experts can assess your situation to help you apply for the most suitable One Time Forgiveness option. Reach out to us today for reliable tax debt relief services. Due to the complex US tax systems, you may still have some questions about liability and relief programs. At Advance Tax Relief, we have a team of experts specialized in resolution services. With their help, you can debunk common tax myths and understand how to avoid getting into trouble with the IRS. They can also guide you in applying for relief programs to clear your debt and prevent consequences like wage garnishment. Reach out to us today to consult a tax expert.

Frequently Asked Questions About One Time Forgiveness Program

1. Does the IRS Have a Tax Forgiveness Program?

When owing the IRS, you are likely to wonder if it offers a tax forgiveness program. The short answer is yes, but it is important to note that having a debt is not a guarantee that you qualify for forgiveness. Before requesting tax relief, you should understand the options available. This way, you can determine which one you qualify for and know how to apply. The tax forgiveness programs offered by the IRS are an offer in compromise (OIC), innocent spouse relief, currently not collectible (CNC), and installment agreements. Each of these categories has specific requirements for eligibility. Consulting a tax professional is the best way to check if you qualify and increase the chances of the IRS considering your application.

2. When Can You Use IRS One Time Forgiveness?

If you cannot pay tax penalties due to circumstances beyond your control, you might qualify for IRS one-time forgiveness. One type of this debt relief program is a reasonable cause, available to those unable to meet their obligations due to health issues or an act of God like floods or fires. First-time penalty abatement is another one-time forgiveness program that allows the IRS to waive all fines and penalties you owe. The qualification requirements are:

No tax debts for the last three years

Filing all returns in time

Making prior arrangements to pay outstanding taxes

The final type of one-time forgiveness is a statutory exception. This relief program only applies if the IRS sends you an incorrect invoice after a tax debt caused by advice provided by their officials.

3. How Much Does the IRS Usually Settle For?

The value the IRS settles for will depend on the amount of debt. It also varies according to the type of tax relief program you use for repayment. For instance, if you select and qualify for an offer in compromise, you first need to pay a lump sum equal to 20% of your debt.

On the other hand, after an installment agreement, the IRS will ask how much you can afford to pay each month. They may also request you to remit a specific amount monthly by dividing

4 . How Do I Ask for Forgiveness From the IRS?

When planning to settle your tax debt, you can call the IRS to talk to their personnel. Another option is to mail them a tax relief program application alongside the needed supporting documents. Since you must prove eligibility when requesting IRS one time tax forgiveness, it is always advisable to get professional help. With the guidance of a liability expert, you can file all past returns and submit the proper documents. Besides, it will be easier to negotiate favorable repayment terms.

5. Does the IRS Forgive Debt After 10 Years?

The IRS can forgive debts that exceed ten years under certain circumstances. However, it is important to note that you may not qualify if you keep failing to pay your debt for subsequent years. This forgiveness duration can also be longer if you sign agreements and waivers that allow the IRS to extend it.

Contact Advance Tax Relief to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

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IRS FRESH START PROGRAM: HOW IT HELPS TO GET YOUR FINANCES IN ORDER

Offer In Compromise, Tax Debt Help, Tax Forgiveness 

Paying taxes you owe to the IRS may be a daunting task when facing financial challenges. Unfortunately, failing to submit the required amount you owe can lead to fines and penalties. The IRS can also freeze your assets and seize your business.

Enrolling in a Fresh Start program allows you to clear your debt and reorganize your finances. Here, we explore avoiding the consequences of back taxes with a debt relief plan. We’ll also mention some of the Fresh Start programs you can consider and the benefits of working with the best tax relief companies.

Getting Your Finances on Track With IRS Fresh Start Program

If you have accumulated tax debt, you can get your finances back on track with the IRS Fresh Start program. The first step to this is determining the most suitable category. Some of the options you can consider are an offer in compromise, an IRS installment agreement, penalty abatement, and currently not collectible.

Once you qualify for relief, the IRS will stop any efforts to collect the debt. For example, they will pause efforts to get a court order for seizing your assets or closing your business. They can also release a tax lien, allowing you to sell your properties.

Another way a IRS Fresh Start program can get your finances back on track is by preventing debt accumulation. The IRS will stop interests from accruing when you enroll in a debt relief plan. They will also pause imposing fines, preventing more financial losses.

 

How to Apply for IRS Fresh Start Program

The IRS requires everyone applying to a debt relief program to meet various requirements. You must also provide specific documents to boost the chances of consideration. In most cases, these vary depending on the program you are applying for and the amount of debt.

 

For example, when sending a request to be considered for the Currently Not Collectible plan, you must prove you are facing financial challenges. It’s also necessary to show that repaying the debt will lead to severe straining. Some documents you can use to support your application are your pay slip and receipts of your expenses.

 

When sending your application to a Fresh Start program, you must remit a direct deposit, depending on the selected category. For example, if you choose an offer in compromise, you must remit a $205 nonrefundable fee. The IRS will also require you to send an initial payment equal to 20% of your debt.

 

Benefits of Getting Tax Resolution Services When Applying for the Fresh Start Program

Determining the most suitable Fresh start program can be tricky due to several choices. Working with the best tax relief companies allows you to simplify this process in many ways. First, such firms have a team of experts who can help you pick the right program based on your financial situation and debt value.

 

These can also negotiate with the IRS for a suitable repayment program. More reasons to get professional tax resolution services are:

 

It can help settle your tax debt for a lower amount

Tax resolution experts can ensure you submit proper documentation

You will get legal representation during audits and case proceedings

Another benefit of working with the best tax relief companies is that it allows you to avoid further penalties and fines. With the help of CPAs, you can quickly file back taxes to avoid debt accumulation. It is also possible to support your Fresh Start application with verified financial documents.

 

Get Your Finances Back on Track With Reliable Tax Resolution Services

Working with reliable tax resolution companies can help you reorganize your finances. At Advance Tax Relief, we have a pool of CPAs and attorneys who can guide you when applying to the IRS Fresh Start program.

With our help, you can avoid the adverse financial consequences of debt. Reach out to us today to get your finances back on track and apply to a suitable IRS Fresh Start program.

Contact Advance Tax Relief to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

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FILING TAXES IN 2022: WHAT’S NEW TO CONSIDER

The 2022 tax filing period kicks off on January 24th, allowing all taxpayers to file and send their 2021 returns. The IRS also announced that the deadline to file and pay the amount owed is April 18th instead of April 15th due to the Emancipation Day holiday.

Before filing back taxes, it's essential to know what to consider and the policies the IRS changed. Here, we provide the ultimate guide to filing taxes in 2022 by discussing critical items to note.

1. Child Tax Credit Payments

In March 2021, the IRS passed an American Rescue Plan, increasing the Child Tax Credit to $3,600 from $2,000. If you qualified for this program and didn't receive a cheque, you may get it in a lump sum by claiming the Child Tax credit. However, if you got advance payments, determine the proper amount to claim when filing your taxes.

When you are unsure how much money you received in an advance Child Tax credit, counter-check the letter 6419 sent by the IRS in January 2022.

In case you determine that you received less than the amount you qualify for, claim a credit on your 2021 tax return. Alternatively, repay the excess before the provided deadline if you received an excess amount.

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2. Charitable Contributions

Another change to note when filing taxes in 2022 is charitable tax deductions. If you do not itemize your withdrawals (subtract them from your gross income), you may take a charitable deduction. However, the amount you are eligible for will depend on your status.

For instance, if you are married and file joint returns with your spouse, you qualify for $600.On the other hand, if you aren't and made cash contributions to a qualified organization, you are eligible for a $300 deduction on the amount you owe the IRS.

3. Claiming the Recoverable Rebate Credit

The federal government rolled out the third Economic Impact Payments in 2021 to cushion citizens affected by the COVID-19 pandemic. If you didn't qualify or were eligible and failed to receive the total amount, you can claim it when filing your 2021 taxes.

Still, if you qualified and got the funds, the IRS requires you to include the total amount in your return forms. Taking this precaution will help you prevent processing delays on your refund. It also ensures you provide accurate details on your tax records.

An ideal way to confirm the amount you received and what you can claim is using Letter 6475. Alternatively, log into your IRS online accounts to counter-check this information.

4. Child and Dependent Care Credit

The child and dependent care credits are available to citizens who paid for childcare to work or search for a job. You can also qualify if you paid the money to care for an adult-dependent unable to look after themselves.

If you fall in any of these categories, claim the child and dependent care credits to lower the taxes you owe. However, if you don't have delinquent taxes, the balance will go into your refund.

When unsure about the amount you spent on these expenses, counter-check your bank account statements. You may also get these details on your financial records or payment receipts.

5. Stimulus Checks

If you qualify for a stimulus cheque, you probably received your last one throughout 2021, beyond the 2020's tax filing deadline. When submitting your tax forms for 2022, it's vital to remember the IRS doesn't consider this payment as income.

Hence, you don't need to include it in your return documents. In case you didn't get the total amount you qualify for, you can claim them as part of the refund.

Contact Tax Industry to File Your 2021 Returns

Filing taxes in 2022 may be tricky since there are various aspects to consider. At the Tax industry, we can help you determine how much you owe the IRS for 2021. We will also identify the deductions and benefits you qualify for then ensure you claim the necessary refunds. Call our offices today for help with filing your tax returns. or other special tax situations.

Get Professional Help to Deal with Delinquent Taxes

Handing delinquent taxes without the help of an expert can be challenging. At Tax Industry, we provide reliable tax resolution services. Our experienced attorneys and CPAs can help you qualify for a repayment program by providing all the needed documentation.  Reach out to us now to book a consultation appointment and resolve your tax liability.

Contact Tax Industry to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#FreshStartInitiative

#OfferInCompromise

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#TaxAttorneys

#TaxDebtRelief

#TaxHelp

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DELINQUENT TAXES AND HOW TO RESOLVE IT

The IRS requires each taxpayer to remit the taxes they owe before the provided deadline. If you do not send the whole amount, the debt accumulates with an interest of 1.5% each month up to 25%. Besides, your account becomes delinquent, implying that you now owe the IRS and are subject to debt collection.

If you have delinquent taxes, it is crucial to clear them to avoid getting in trouble with the IRS. This measure also stops the penalties from accumulating, saving you from repaying a hefty amount.

Here, we provide more details about delinquent taxes and the best ways to deal with them. We will also discuss the precautions you can take to avoid owing the IRS in the future.

 

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CALL (713)300-3965

 

 

 

 

What Happens When I Have Delinquent Taxes?

Once the deadline for paying taxes passes, the IRS will start the collection process. The first step they will take is sending a notice to your mailing address. 

 

This document states the amount due and the consequences you may face if you do not pay. It also indicates how much the penalties and fines will accumulate until you clear the balance.

 

It is vital to contact the IRS after receiving the notice to develop a payment plan. If you do not do this, they may take various debt collection actions.

 

For example, the IRS can freeze all your bank accounts and assets. Besides, they may file a federal tax lien, affecting your ability to get financial credit.

 

How to Handle Delinquent Taxes

The best way to deal with delinquent taxes is by responding to the notice sent by the IRS in time. If possible, pay the total amount you owe and update your filing documents. In case you cannot repay in full, it is advisable to consult a tax liability professional.

 

With their help, you can determine the most suitable installment program based on your financial situation and the amount you owe. Further, it will be easier to negotiate with the IRS for an installment payment program.

 

Repaying Delinquent FITaxes

The IRS offers various programs to help you pay delinquent taxes. These include an installment agreement, offer in compromise, and currently not collectible. The installment agreement plan allows you to repay debts that are equal to or less than $50,000. In most cases, the IRS will give you 72 months to clear the total amount.

 

Offer in compromise is a tax relief program that allows you to pay less than what you owe. Still, you will need to remit an agreed lump sum amount and then pay the balance over a specified duration. 

 

When facing financial hardships, you may not be in a position to pay your tax debt. In such a case, the IRS can declare your account currently not collectible to stop recovery attempts. To qualify for this relief program, you must show that paying your debt will cause severe hardship.

 

How to Avoid Delinquent Taxes

Delinquent taxes often result from minor calculation errors and failing to provide correct information. Hence, it is essential to double-check all figures when filling your forms. Alternatively, use the IRS online system to avoid miscalculations or hire an expert to file your taxes.

 

More strategies to prevent a tax debt are:

 

Filing under the correct status

Reporting all your income

Reviewing all your details before submitting tax forms

Another way to avoid delinquent taxes is by ensuring you remit the total amount owed by the due date. Further, understand all the taxes that apply to your filing status to ensure you pay the correct amount.

 

Get Professional Help to Deal with Delinquent Taxes

Handing delinquent taxes without the help of an expert can be challenging. At Tax Industry, we provide reliable tax resolution services. Our experienced attorneys and CPAs can help you qualify for a repayment program by providing all the needed documentation.  Reach out to us now to book a consultation appointment and resolve your tax liability.

Contact Tax Industry to Help Deal with Back Taxes

Seeking professional help when handling back taxes can help you avoid the discussed errors. At Advance Tax Relief, we offer specialized tax resolution services to help you deal with IRS debt.

Our experts can help rectify erroneous tax bills and guide you in picking a suitable repayment program. Contact us today (713)300-3965 for back tax filing and tax relief services.

 

Advance Tax Relief is rated one of the best tax relief companies nationwide.

 

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation 

#TaxAttorneys

#TaxDebtRelief

#TaxHelp 

#TaxRelief

#BestTaxReliefCompanies