irs hardship program
The irs hardship program is specially designed for people who are not able to pay their income tax due to numerous reasons. An individual can avail this opportunity to reduce their debt through the IRS which will then be taken back by the creditor. Another popular term used for describing the IRS program is IRS Hardship Tax Plan. This simply means that the agency puts a hold on any future collection activity on your account. If you wish to avail of this privilege, you have to follow certain guidelines and show evidence of your financial indisposition. Being caught under the burden of debts is not something pleasant at all. You might be thinking of ways to come out of it, and one of the best options is the debt settlement process, otherwise known as the IRS Hardship Tax Plan. This is a very helpful scheme available to help taxpayers who are unable to pay off their debts in full because of several reasons. There are various options like an Offer in Compromise, Installment Agreement, and Currently Not Collectible status.
There are people who are not qualified for the IRS plan and are yet to face tax problems with the Internal Revenue Service. These are the taxpayers who are unable to pay or ignore the IRS proposal to reduce their tax liability. In case you fit in any one of the above categories, there is still hope for you to eliminate your taxes by a significant amount. You must be aware that delinquent payments do not disappear on their own. There must be some unavoidable circumstances that forced you into tax delinquency, like job loss, medical complications, divorce, or some natural calamity.
irs hardship program benefits
With the help of IRS Hardship Tax Plan, you can settle your tax issues by a significant amount, which may even exceed the total amount you were required to pay. This program allows you to choose between Installment Agreements and Offer in Compromise. Among the two options, Installment Agreements allows you to collect minimum monthly payments while the IRS is collecting the rest. The downside of this deal is that the interest accrues and if you fail to make monthly payments on time, then the total amount payable exceeds the original loan amount.
Offer in Compromise enables the taxpayer to settle his/her delinquent tax liability either by paying it outright or by accepting an amount less than the total he/she was required to pay. A taxpayer may also request for an extension and this will be binding on the IRS. It will not be easy for the agency to agree on a compromise because the taxpayer has already shown his inability to pay. He/she may also have jeopardized his/her credibility by filing for bankruptcy and thus jeopardizing the settlement. So, it is best for a person to gather all supporting documents and make convincing arguments before the IRS to settle the case.
So, if you are under the Hardship Status and if you have been unable to meet your monthly obligations, then you should contact the IRS immediately and request for the new taxes and installment assistance. Just make sure that you are represented by a trustworthy tax professional. This way, you will get the IRS to agree on a settlement that will help you avoid having to face numerous problems regarding back taxes. You do not have to lose your integrity and face the music for the rest of your life just because you failed to pay your overdue taxes. There is still a chance to save your financial future if you want to pursue an agreement with the IRS.