Wednesday, January 14, 2015

Wrong Expectations vs. Realities about Tax Relief

Tax relief is a complex issue, and there are many wrong expectations surrounding it. Here are some of them and the realities you should be aware of:

Can you get rid of your tax debt without paying anything?

The short, general answer is no. You may experience tax relief in terms of having your late payment penalties or even interests waived, as long as you meet the narrow criteria, but you still owe the unpaid taxes. You may also be able to lower the total amount through an offer in compromise.

Can you keep hiding until past the statute of limitations?

No; that’s tax evasion, and you could get convicted for that. Although there are limits to how far back the IRS can come after your debt, these periods vary. It also doesn’t mean you can delay paying years before you get notices. Better not procrastinate; face your tax troubles as soon as possible.

Can you negotiate for tax relief without representation?

Technically, you can, but without an experienced tax lawyer, you might not tip the IRS decision to your favor. The difference with having a lawyer with an extensive background in tax relief is that he/she can navigate the IRS rules and processes more easily. Doing so, he/she can help provide all the documentation necessary in fulfilling other requirements or steps for you to successfully have tax relief.

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