StefanieMonteleone325

Taxpayers may be overwhelmed when they need to pay back taxes to the Internal Revenue Service and are unable to write a check to pay off the debt. Having a tax bill can be intimidating and the IRS has a track record of being an evil, monolithic business staffed by heartless, cruel staff who exist to make taxpayer's lives miserable. The good news is the reality is much gentler. While Congress has been belittled for a lack of action on quite a few issues over the past few years it did American taxpayers a couple of favors by instructing the IRS to set up a number of tax relief packages to help taxpayers with legitimate problems paying their tax debts. Unfortunately the majority of of these relief programs have received hardly any press coverage and the vast majority of people who owe back taxes are unaware of the possibilities available to them. The number one blunder made by people who have a tax bill is ignoring the IRS and praying that they will disappear. Trust us, this never works. The IRS has a specific mandate from Congress; collect all the taxes owed by individuals and businesses. Just because someone won't respond to a request for information or a tax bill will never mean that the IRS will quit looking to collect. By just acknowledging that you received the letter from the IRS might help any future communications from being routinely confrontational. Receiving a letter from the IRS will not mean that what the IRS is claiming is accurate. Some studies by third party groups reveal that the IRS has wrong data or has generated an incorrect determination in close to 20% of the requests for taxes due mailed. Examine the letter carefully and figure out what the IRS demand is based upon. You generally have up to 60 days to respond to 1st or 2nd requests for information so be thorough in your response. If you have paperwork to challenge an IRS contention, present these documents and your answer in a very clear, even form. Avoid getting defensive or obnoxious, blaming the IRS of incompetence is not going to make things any easier for you. Should you owe taxes, there are options available to you to aid you pay them in regular installments. Don't suppose that a payment plan is instantly set up, you will need to work with the IRS to determine what you can afford and how long the payment schedule should be. Don't forget that interest will also be accruing while you are dealing with the IRS and throughout your repayment period. It is important that you maintain the scheduled payments and keep all payments current, being in default on your tax settlement program eliminates all flexibility in working with the IRS. One more option for tax relief is tax reduction. In cases of personal disaster or emergency the IRS may actually lower the amount of the principal due. This procedure calls for a great deal of proof of disaster and how the event or events caused personal and financial hardship. This may require you to engage a tax professional who will assist you to file the right paperwork necessary to have the IRS look at your application to reduce your tax debt. Nevertheless, if your tax debt is considerable the cost of a tax lawyer may be a great deal less than the total amount of tax relief that you end up obtaining. Although there are no promises of relief when you are dealing with the IRS, some simple principles do apply that will help your cause. Answer back promptly, be courteous and honest, have proper documentation and make sure that you honor all of the commitments that you make. Tax relief is possible but the process demands patience and openness.