When times are tough, sometimes it takes a while to get back on your feet. Bankruptcy and debt settlement with creditors can help many individuals get out of personal debt. But the most difficult debt to have reduced or forgiven is tax debt. The IRS has built up walls by implementing laws and practices that make it near impossible for the average American to receive tax debt relief. IRS debt forgiveness is possible, though the paperwork involved and the thought of going through negotiation with the IRS can be daunting. Hiring a professional tax attorney can help you decide which IRS debt forgiveness plan will be best for your situation. He or she will be knowledgeable about current tax forgiveness initiatives, relief programs, and changing policies which can work to your advantage. Some of the most common relief options are Offer in Compromise, installment plans, and Non-Collectible status. Your tax professional will also have a few other tricks up their sleeve to battle the IRS and help you get rid of your tax debt. Here are two strategies your professional tax relief specialist may use to help you relinquish your tax debt: File and Amend Past Tax Returns: If you never filed past returns or filed them incorrectly, your tax attorney will go over your financial paperwork and file your delinquent returns. In some cases, your tax professional may discover you were owed a refund on the delinquent returns. If the refund has not exceeded the statute of limitations you will receive a credit on your tax debt. If you filed all of your returns on time, your tax attorney will review your past returns. He or she may find deductions or other credits you missed. In this case he or she will file to amend these returns. You may end up owing nothing to the IRS or owe significantly less than you initially thought. Statute of Limitations of Tax Collection: There is in fact a statute of limitations which restricts the IRS from collecting back taxes or tax debt you owe. In most cases the statute is around 10 years. After the ten years your tax debt is completely forgiven by the IRS. The best way to approach the statute of limitation clause is to pursue Non-Collectible Status with the IRS. When facing exorbitant financial difficulty, your tax professional will suggest you apply for Non-Collectible Status. If your application is accepted, you will owe the IRS nothing until you are deemed able to pay. If the statute of limitations runs out before this time, your debt will be forgiven. In order to explore these and many more tax forgiveness options, contact the Best tax lawyers in California at Optima Tax Relief. They can help you apply for IRS tax debt forgiveness. In addition, the experts at Optima can stop wage garnishment, put an end to penalty and fine accrual upon your debt, and have bank levies and liens lifted.
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