Have you come across a financial hardship that is affecting your ability to pay personal or business taxes to the IRS? The problem won't simply go away by ignoring it, but there are options made available to you by the IRS to help relieve part of the burden you are currently facing, and this quick guide will help you discover what might work for you and how to go through the process.

IRS Programs for Those Needing Tax Relief

Whether you are concerned about looming economic troubles for your personal or banking finances, the IRS has provided specific courses of action that can get you back on track without facing serious trouble or extra penalties.

You will begin to receive notices from the IRS when your taxes are overdue, and you will want to address this issue immediately. If you are able to do so, you can pay what you owe in a lump sum payment, including interest and penalties.

If you are financially unable to pay what you owe to the IRS in a lump sum, they are generally willing to negotiate an installment agreement. You can apply for either a short-term or long-term plan, but be aware that there are fees involved as well as penalties and interest while you are paying down what you owe.

Financial hardships might have gotten you to the point where you could never be able to pay back the balance of what you owe. If so, the IRS will allow you to apply for an Offer in Compromise as a last measure, where they will evaluate your personal circumstances, including your ability to pay, income, expenses, and assets. You will then need to pay what they believe they can reasonably expect you to be able to afford via a lump sum or periodic payment plan.

Local and Regional Companies Who Can Assist the Debt Relief Process

While you might feel comfortable researching and applying for tax relief on your own, there are many who would prefer the technical details were handled by someone with experience in the field. Whether you hire a local certified public accountant or a larger tax relief service company, there are likely businesses in your area that can do the heavy lifting for you.

Whichever route you choose, you can search for online ratings to see how previous customers have enjoyed working with particular companies. Avoid scams that promise results, which are never guaranteed by the IRS, or companies that make you pay your costs upfront and never finish the job, leaving you with extra costs and penalties added on to further your woes.

Remain Proactive in the Process

The thought of an IRS regulator talking to you about your tax relief needs might be daunting, so it is important that you know your rights as a taxpayer. Make sure you have all of your information prepared for when they talk to you about your situation, be honest about your hardships and your ability to pay, and listen to what your tax professional is advising you to do.

Having overdue taxes is a difficult situation for anyone to handle, but now you know that there are ways to relieve this stress through proper legal channels.