Tax Relief FAQ
Tax relief refers to various programs offered by the IRS or state tax agencies that allow taxpayers to resolve their tax debt, often for less than the original amount owed or through an extended payment plan. You generally qualify if you owe a significant amount of back taxes and are currently experiencing financial hardship that prevents you from paying the debt in full.
The most common IRS resolution options are the Offer in Compromise (OIC) (settling for a lower amount), an Installment Agreement (a monthly payment plan), or a Currently Not Collectible (CNC) status (a temporary collection hold). The best option depends on your unique financial situation.
An OIC is an agreement between you and the IRS that settles your tax liability for a lower amount than you originally owe. The IRS typically accepts an OIC when the amount offered represents the most they can expect to collect within a reasonable timeframe, considering your income and assets.
In many cases, yes. Once a formal resolution process begins (such as applying for an OIC or an Installment Agreement), the IRS is often required to temporarily suspend collection activities, including wage garnishments, bank levies, and property seizures, while they review your case.
Yes, absolutely. The first and most critical step in almost all tax relief cases is becoming “compliant,” which means filing all delinquent returns. We will work with you to obtain the necessary documents and prepare and file all outstanding tax returns before proceeding with a tax debt resolution plan.
The timeline varies significantly based on the complexity of your case and the resolution path chosen. Simple Installment Agreements can be set up in a few weeks, but complex cases like a full Offer in Compromise can take 6 to 12 months or more to get final approval from the IRS.
To properly evaluate your case, you will need to provide documentation of your entire financial situation, including: past tax returns (if available), pay stubs/income statements, bank account statements, and details on all assets and expenses (mortgage/rent, utilities, car payments, etc.).
The cost varies greatly depending on the amount of debt and the complexity of the services required (e.g., filing five years of back taxes vs. simply negotiating a payment plan). Most reputable firms offer a flat-rate fee after an initial consultation, ensuring you know the full cost upfront before work begins.
Yes, you can, but it can be extremely difficult and time-consuming. Tax code is complex, and the IRS forms and processes for resolution programs require precise financial analysis and detailed compliance. Hiring a licensed professional (like a CPA, Enrolled Agent, or Tax Attorney) ensures you explore every legal option and have a dedicated expert handling all communication with the IRS.
Innocent Spouse Relief is a provision that allows one spouse to be relieved of joint tax liability if the tax understatement was due to errors or omissions by the other spouse, and the requesting spouse had no knowledge (or reason to know) of the understatement when they signed the joint return.