Are you behind on your taxes or struggling to deal with a tax bill? If yes, then this blog is right for you. There are several tax debt relief programs for individuals who need assistance with a federal tax bill, back taxes, a tax penalty, etc. Interested to know more? Read ahead!
Understanding IRS Tax Relief
IRS tax relief can mean different things according to the context and circumstances.
What is IRS Tax Relief?
Simply put, IRS tax relief can be defined as any kind of measure, incentive or provision that helps you (the taxpayer) to mitigate or minimize your tax liabilities. So, IRS tax relief includes popular breaks, such as tax credits, tax deductions, stimulus checks and rebates. In addition, the term ‘tax relief’ can also be used to refer to certain tax deadline extensions for taxpayers who reside in federally declared disaster areas or individuals who might be affected by specific untoward incidents, such as floods or hurricanes. During such a context, tax paying citizens of America are eligible for deductions to some portion of the personal property losses that are not covered by insurance or other reimbursements.
Who is eligible for IRS tax relief?
The eligibility for IRS tax relief depends on multiple factors and specific programs. Some of these are mentioned below –
- You have to owe federal income tax
- You should not have a history of unpaid taxes
- You must not be subject to a federal tax lien
- You are not able to pay your tax bill in full
- You are facing tax problems and are unable to afford the payment of tax liabilities owed to the Internal Revenue System
- You have filed your current return or at least requested an extension
- You have already your past taxes or are currently engaged in a payment plan to pay them
- You have not had any IRS penalties in the prior three years.
If you check all the pointers mentioned above, then you might be eligible for IRS tax relief.
What are the benefits of IRS Tax Relief?
After a crisp overview of the IRS tax debt relief system, let us check out its benefits.
Lower taxes
The first and most obvious benefit of IRS tax relief is that your overall tax burden is vehemently lowered. With tax credits, you might get a dollar-for-dollar reduction in what you owe to the IRS. Some of the common tax credit types include Child Tax Credit, Economic Impact Payments or Stimulus Checks and Employer Tax Credits.
Refunds
The second benefit of IRS tax relief is that you can deduct certain expenses, such as home mortgage interest, your taxable income, etc. This ultimately lowers the amount of tax you owe to the state. For instance, if you have a home mortgage, you can deduct the interest paid on it. Likewise, you may also qualify for deductions of business costs, medical expenses, educational expenses, and more.
Agree on a repayment plan
The third benefit of IRS tax relief is that you can come to an agreement with the Internal Revenue System on a payment plan and slowly and gradually pay off your due taxes. This will keep your records clean while ensuring that you do not have to undergo massive financial strain.
Where can I find Additional Information about the IRS Tax Relief System?
You can find additional information about the IRS tax relief system on the official website of the Internal Revenue System. However, for personalized information and assistance, you can consider hiring a financial advisor or a tax consultant. They are aware of the ins and outs of tax relief and can streamline the process.
