Know More About What Form Of IRS Tax Relief You Can Get

The Internal Revenue Service (IRS) of the United States Department of Treasury collects all federal income taxes. The department has been given full authority and power to accomplish this task. During times of hardships, tax payers are supported by IRS tax relief measures. In such times, the department is not allowed to harass individuals for tax returns.

Under IRS tax relief, IRS works with taxpayers to find a way to resolve the taxpayerÂ's tax liability. This process or effort is based on the taxpayerÂ's specific financial situation, which is unique in most of the cases. Individuals with federal income tax liabilities are helped in certain ways to facilitate tax payment.

IRS offers different ways to the taxpayers so as to resolve their tax liabilities. However, as stated above, the ways depend upon the financial situation of tax payers. Usually the most common programs offered are Offer in Compromise, Installment Agreement and Currently Not Collectible Status.

Offer in Compromise

IRSÂ's Offer in Compromise program allows taxpayers to settle for less than what they actually owe. However, it is only applicable for those people who cannot afford to pay their back tax liability, fully. The Offer in Compromise program is helpful in reducing IRS debt. These IRS tax settlements are subject to some specific terms and conditions.

Installment Agreement

The Installment Agreement program is designed to help those tax payers who cannot pay their liability fully. They are allowed to make monthly payments to pay their back taxes. There are certain guidelines which help the IRS to determine the time frame and the payment amount for installment agreement.

It needs a tax payer to be compliant with all past tax filings before the agreement can be established. In different cases the installment agreement can pay the back tax liability, fully or partially. It depends upon the circumstances and the amount of time left with the IRS to collect the tax debt.

Currently Not Collectible Status

A taxpayerÂ's account is placed on a Currently Not Collectible (CNC) status by IRS only when the department has not been able to collect the taxes from the taxpayer. It includes collection by full payment, Offer in Compromise and Installment Agreement. After the account has been placed under this status, the IRS stops collection activity against the taxpayer. However, the statute of limitations on tax liabilities continues as earlier.

Usually, the account remains on this status unless there is a change in the taxpayerÂ's financial situation. The status remains so until the expiration of the tax liabilities.

All these IRS tax relief programs have helped many tax payers and they continue to do so.