The four options that relieve you of IRS tax issues

You cannot completely evade tax or escape tax debts. It is your duty to pay tax and if you have problems in doing so, you can try to make the tax payments through any of the four primary options available under IRS tax relief. In almost all of these programs, you will have to pay at least a part of your tax debt. So, the main aim of these programs is to try and minimize the amount to be paid by you to the IRS.

What are your options?

As has been mentioned above, there mainly are four options following which you may find it easier to pay down your tax debts. These are:

Tax Debt Settlement

Tax settlement involves a lump sum payment after the amount you owe gets settled. This program ensures that they get back or recover at least a part of the money you owe them. This program is also helpful for you as it allows you to save money as you aren’t required to pay the taxes in full. The following are the factors which the government considers so as to determine the settlement amount:

1. Your age

2. The assets you have

3. Your income and fixed expenses

Tax Compromise

The program under tax compromise works similar to that of tax settlement. In this case too, the amount to be paid to the IRS reduces. However, the main difference in between the two is the way in which the amount you will be required to pay gets determined. In case of the tax compromise program, the IRS considers your payment ability. So, the IRS mostly considers your investments and savings rather than your income and age.

IRS Tax Abatement

The tax abatement process is nothing but tax forgiveness. Although, it is tough to obtain this relief, if agreed it provides you with the opportunity to get a reduction with regards to your liability and also an increase in the deductions. That is, the penalty for non payment of taxes may get reduced. It is offered to people in genuinely hard situations. People those who aren’t responsible for their hardships may be eligible to qualify for payments under this option.

The Installment Payment Plan

The installment structure provides you a repayment plan, so that you can manage to pay down the taxes you owe. This helps the IRS in recovering the funds easily and fast too. A repayment plan works best in times of financial hardship. For example, if you have been laid off or if you are unable to work due to any accident or illness, this may be one of the best options.

So, these are the tax relief options through which you can pay down the tax debts.