Federal Tax Relief – 3 Options To Ease Your Tax Liability

Many taxpayers worry about their chances of getting federal tax relief and for good reason. If you’re unable to pay your taxes, it can be a frightening feeling.

The IRS can garnish up to 25% of your wages to collect your tax debt and on top of that, they aren’t the most friendly people to deal with. Thankfully, there are a few things you can do to resolve your tax situation.

Installment Plans

As long as you’re willing to own up to your mistakes and bite the bullet, the government will be more than happy to work with you. After all, the more cooperative you are, the more likely they are to get their money.

Installment plans are one of the most popular forms of federal tax relief and you can usually set up a reasonable
payment plan for taking care of your debt. Not only does this help ease the financial burden, but it also allows you to once again get in good graces with the government. To arrange for an installment plan, call your local IRS office to discuss your options. Most often, you can have a payment plan set up in less than 30 minutes.

This is the most common option and represents your best chances for receiving federal tax relief.

Settlement

Otherwise known as an offer in compromise, a settlement is an agreement with the IRS that you will pay less than what you owe. While this option may sound appealing, it is very uncommon and your chances will be extremely limited without the help of a tax attorney. Negotiations with the IRS can be difficult and unless they are unsure of your tax liability, you’re going to have an uphill battle.

However, this option does still represent one of your options and it should definitely be taken into consideration when deciding how to approach your tax debt. In rare occurrences, the IRS will take much less than you owe, so if you think there are some shaky areas in their case, consider a settlement to relieve your debt.

In order for a settlement to be successful, your case must meet one of the following three criteria:

- The IRS must believe they can’t collect the full amount you owe
- They have to be unsure of your tax liability
- Proof that tax payments will affect you negatively and they are without justification

Innocent Spouse Relief

The last federal tax relief option we are going to look at today is Innocent Spouse Relief. Innocent Spouse Relief can help to alleviate your tax liabilities as the result of a joint filing with your current or ex-spouse. Basically, if you filed a joint return with your spouse and for some reason that return wasn’t correct, you may not be liable for any of the taxes, interests, or penalties. This could happen for a number of reasons, most often it is a result of your spouse understating or overestimating your income.

Thanks to innocent spouse relief, you can eliminate your tax liability if you were unaware of the filing mistake
at the time it occurred.

All 3 of the federal tax relief options above represent your best chances for helping ease your tax liability. Take a good long look at your situation and decide which option best suits your specific needs. No matter what option you choose, it is a good idea to sort things out and get right with the man so to speak. It will  help to ease your mind and ensure that your income is protected from wage garnishments and other tax penalties in the future.

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