Things To Know About Tax Debt Relief

There are many types of relief, most of them having to do with owing a reduced amount on your debt owed to private institutions. This reduction can be accomplished on your own or through the help of debt consulting agencies. Today we will be discussing something a little different, tax debt relief. useful source

Tax debt relief is a program offered by the united states government tax collection organization the internal revenue service or IRS for short. The IRS is in charge of collecting all taxes due. But what if your circumstances leave you with a large tax burden that you simply cannot afford? Let’s say for example you were running an LLC and your companies owes $20,000 in back taxes. If your company goes under, most of that companies debts go with it, but not taxes! Tax collectors have the right to go after your personal property for money owed by an LLC, if they can demonstrate you are the rightful owner of the debt.

This is where tax debt relief comes in. The IRS agent in charge of your file can at his discression decide that you are not required to pay back some or all of the tax debt owed. This determination is made based on factors such as your income and likely ability to repay. Also, if you accumulated a very large tax bill while you were wealthy but are now very poor, it may be likely that you will be extended some relief on your taxes.