The IRS has a list of proven tax relief programs when needed. But the list is extensive, and some options may not apply to every individual or company. A tax attorney is a helpful addition to any tax plan and maybe the final key to setting things right. For a better overview of what to expect before committing to a program, ask the five questions below.
1. Are There Any Fees Attached to The Program?
There are many different types of IRS tax relief forms. Each of them achieves different goals, but there are some that have fees. There is no universal fee for relief forms, so it is best to ask upfront. Some fees will be neutralized by the Taxpayers First Act. This usually applies to taxpayers that are facing severe financial difficulties. Fees are flexible, but never assume that they remain static year to year.
2. How Well Does It Handle Back Taxes?
To understand how tax relief programs work with back taxes, you need to place yourself in one of two categories. The first category is for individuals or companies that can’t afford to pay their back taxes. This opens up the doors for partial repayments or payment arrangements over time. There are even cases where you can qualify for no repayment at all. The second category is for individuals or companies that don’t owe back taxes. An audit reconsideration or claim for refund handles this particular back tax problem. For added flexibility, there are also many other options to pursue if you don’t owe any back taxes.
3. What Are the Other Programs?
Some of the other tax relief programs are not as straightforward as the others. Unfiled returns, criminal exposure, penalty mitigation, and more cover the many different types of available amnesties. Some programs like the IRS First Time Penalty Relief are guaranteed. Qualifying for multiple programs at once isn’t uncommon. But it is up to you to decide which one works better for your financial situation.
4. Is There Relief for Cases of Mental Illness?
Taxpayers with mental illnesses should properly document their condition when handling papers for tax relief programs. There is no specific tax initiative for mental illness, but getting a good settlement can sometimes hinge on the health information you provide.
5. Will the Program Work for Tax Liens?
When you owe the IRS money, a Notice of Federal Tax Lien is sent out to people you do business with. This is damaging to a company’s reputation, but there are options for dealing with it over time. For tax liens, the Fresh Start Program is the best choice for individuals and businesses. This is especially useful since it helps your credit report.
IRS programs vary based on the state you’re in. New laws are created yearly that may change how well a program meets your standards. Stay up to date with IRS changes, and you’ll never have to doubt the effectiveness of relief programs.