According to the professionals at Instant Tax Solutions, “the IRS is becoming more cooperative than ever.” The reason for this increased willingness for compromise, according to Instant Tax Solutions, is the current economy. Instant Tax Solutions is a forty-person team of tax professionals that assist individuals with tax relief. Co-founded by Byron Pedersen and Ian Woodman, Instant Tax Solutions has a client list that spans the entire nation.
“While it is important for an individual owing back taxes to consult legal representation, there are basically two categories of programs for handling back taxes,” explains Instant Tax Solutions’ Byron Pedersen. The first category of programs, according to the Instant Tax Solutions co-founder, is to enter into an agreement settling the amount of back tax for less than owed. “If for some reason the tax debt cannot be reduced, a taxpayer can apply for special consideration,” explains Instant Tax Solutions’ Pedersen.
In this article, using the Instant Tax Solutions website as a resource, we will briefly examine the three options available if the Internal Revenue Service agrees to settle back taxes for less than what is owed. The first option, according the Instant Tax Solutions website, is the Offer in Compromise. “While this is the most popular option among taxpayers, it is also the most difficult for which to qualify,” notes Instant Tax Solutions. The OIC gives the IRS authorization to reduce the amount owed, including penalties and fees, according to Instant Tax Solutions. “The burden falls on the taxpayer applying for this option to prove that the amount owed would force them into financial hardship,” says Instant Tax Solutions, “and that it probably would never be paid in full.”
According to the Instant Tax Solutions website, the second option under the program of a settlement reduction is penalty abatement. The Instant Tax Solutions online resource explains that penalty abatement is the elimination or reduction of fees and penalties imposed by the IRS. However, according to Instant Tax Solutions, reasonable cause for failure to follow tax laws must be stated. Instant Tax Solutions further explains that some of those reasons include death or serious illness, unavoidable absence by taxpayer, or inability to determine tax amount for reasons beyond taxpayer control.
The third option under the program of settling back taxes with the IRS for less than what is owed, says Instant Tax Solutions, is a Partial Payment Installment Agreement (PPIA). According to the Instant Tax Solutions website, a PPIA is a reduction of total tax liability broken down into a monthly payment plan. In order to qualify, the taxpayer has to demonstrate that they are financially unable to pay the minimum monthly payment of the tax debt, explains Instant Tax Solutions. A negotiated agreement may be reached, for a lesser amount, allowing the taxpayer to pay their tax liability over a monthly payment plan.
Whatever the situation may be, a taxpayer owing back taxes needs proper representation, maintains Instant Tax Solutions co-founder Byron Pedersen. “Qualified representation, like that provided by the professionals at Instant Tax Solutions, knows the ‘in and outs’ of the IRS and can negotiate the best option for the taxpayer,” states Pedersen.
Instant Tax Solutions was birthed out of a vision to join expert tax relief services with an absolute commitment to integrity. With genuine concern for clients and a combined tax relief experience of over one hundred years, the professional and highly educated staff continues to remain current with tax changes. For more information about the assistance offered by Instant Tax Solutions, visit them online at http://InstantTaxSolutions.com.