For those who are getting swamped with concern over their tax situation – there’s hope. Tax relief is available to many who are dealing with the burden of figuring out how to catch up on their back taxes. It’s certain that a great deal of people that have back tax issues are more stressed than they have to be – but now there’s a chance you won’t have to handle all or most of that debt, thanks to tax relief available to many people.
To be sure, the IRS can bring much stress to your life if you have problems with unpaid taxes. Whether it’s wage garnishing, or tax liens, or even people who serve as private debt collectors and gain by getting money people owe, the IRS has many ways of collection that can get under our skin. How many of you have gotten incessant phone calls from collection agencies looking to speak to you about whatever debts you may owe?? For those who are trying to keep a business going – or keep the family finances solvent – tax relief can be a huge lifesaver.
There is a certain form of tax relief available to people who foreclose to wash away their debts – it’s called offer-in-compromise. Keep in mind that in cases where foreclosure funds are greater than the amount of debt you owe, the resulting difference can be taxed. So what happens is that your lender should give you a year-end financial statement form, on which the most important things are stating your property value and the amount of debt that was forgiven.
If a disaster of some sort strikes you and your area, you may want to see if there is disaster tax relief offered. This assistance allows those in ravaged areas the ability to try and get back on their feet.
There are also opportunities for those who are low-income and are in dire need of tax relief. In plenty of instances, there are states (that do not have income taxes) which offer programs designed to help struggling people and families. Since the poor have more difficulty overcoming the burden that local and state sales taxes and other taxes can place upon them, income-tax-free states figure that implementing programs such as these help keep families from going under by providing tax relief. Should a state actually have an income tax, then what happens is exemption for those who live below the poverty line. Plus, tax relief is available for homeowners who happen to make under $60,000 annually. Some states offer homeowners’ credit certificates to these people, who then pay their property taxes thanks to these certificates. All of these are welcome aid to those who are in low-income situations or those who have collateral, but still struggle wit the task of finding the money to pay back taxes.
There are also a host of debt relief services that would be happy to help anyone who is in need. So those who are worried about their tax situation can rest easy – somewhere, there is a tax relief package that should fit your situation.
Tax relief is any deduction from taxes allowed to taxpayers by federal or state tax authorities for certain expense categories. An example is allowing the deduction of interest paid on educational loans from the income tax payable. Tax relief also takes the form of full or partial tax exemptions for low- and moderate-income families. In some cases, tax relief includes releasing citizens from paying taxes immediately, particularly during cases of natural disasters and similar contingencies. An example is tax relief granted to families following the devastation caused by hurricanes in the south during 2005.
Tax relief helps everyone, particularly the low-income families. It is normally provided as deductions from any of the various taxes like income tax, state tax, property tax, etc. In 1992, a tax-relief program introduced by the Internal Revenue Service was specifically targeted at helping individuals and corporations settle back taxes. This helped persons who were in financial hardship to pay back at least a part of the taxes that they owed. This process, which allows taxpayers settle the back taxes that they owe for less than the full amount, is known as an offer in compromise.
Normally, tax relief works through a process where tax authorities review the ability of a taxpayer to pay taxes based on information regarding the person’s income and assets. A tax relief is granted if it’s found that the recovery of a certain tax is unreasonable on the grounds that asset values have significantly decreased. However, tax authorities grant a tax relief only if the taxpayer’s request for relief is based on a valid reason as defined under law. Tax relief is also granted under special circumstances. In the case of taxes on inheritance and gifts, a relief can be granted if it’s ascertained that the value of the assets received has significantly reduced.
Tax-relief attorneys are attorneys who help taxpayers with tax-related issues and, in particular, assist taxpayers with obtaining all of the tax relief that they are eligible for from the federal and state tax authorities. Most tax-relief attorneys focus on providing their clients with services related to offer in compromise, full audit representations, and penalty abatement petitions. Tax-relief attorneys work as private practitioners or are employed with tax firms. Most of these tax firms have dedicated tax personnel who also undertake preparation of tax forms and filing of taxes, apart from helping clients with obtaining tax relief.
The federal and state tax authorities have numerous tax-relief programs that are aimed at reducing the tax burden on the taxpayers. Most of the tax-relief measures come under property tax relief, income tax relief, and relief for small business owners. However, working through the tax forms and finally obtaining the eligible tax relief is quite a challenge to many taxpayers. Tax-relief attorneys are particularly helpful in this situation since they are trained in taxation and law and are aware of the constant changes to tax regulations and legislations both at the federal and state levels. Since tax relief is targeted in a large part at taxpayers belonging to the low income and senior citizen categories, the services of a tax-relief attorney can be very crucial in ensuring that the tax relief is quickly and easily obtained.
In short, tax-relief attorneys are professionals who help with resolving tax-related issues. The broad services that they provide can be listed as settling tax debt for a fraction of the debt; stopping wage garnishment, tax levies, and property seizures; settling state and payroll tax; trust fund recovery; tax planning; audit representation; and investment advice. So, even though tax-relief attorneys focus on providing services related mostly to tax relief, they also engage in other tax-related work.