If you have tax debts you need to settle or consolidate, please spend as much time as needed to review all of these pages. Our advice comes from our founder who has been through many, many rounds of IRS negotiations in his career. So, the advice is well founded and tested many times.
General Advice for Reducing Your Tax Debt
Tax Debt Relief
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Tax Debt FAQs
IRS Tax Relief
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State Tax Relief
More Sources of Tax Debt Relief
You're Not Alone

Many people face a financial crisis and need debt relief at some point in time in their lives. Debt is not something to be ashamed of. In fact, most Americans are currently in this situation. Whether it is caused by a crisis such as personal or family illness, the loss of a job, poor budgeting or overspending, owing a large amount of money can seem overwhelming.

The Golden Rule

DO NOT RUN FROM YOUR DEBT. Most creditors, including the IRS and other tax agencies, are usually willing to work with you. The tax agencies will work with you if you don't try to hide from them. They're busy trying to track down people that won't return calls or letters. The worst thing you can do, both financially and legally, is to become one of the "evaders".

Debt relief can usually be negotiated with lenders. Some lenders may reduce or suspend payments for a short time. When it is time to resume regular payments, though, it may be necessary to pay an additional amount toward the past due total. Other lenders may agree to change the terms by extending the repayment period to reduce the monthly payments.

Create a Budget

Developing a budget is the first step to controlling your financial situation and finding debt relief. Debt counselors are professionals at assisting consumers in developing an achievable budget. A realistic assessment of how much money an individual or family will take in and how much money will be spent can go far in helping control and conquer financial problems. Computer software programs can also be useful tools for developing and maintaining a budget, balancing a checkbook and creating plans to save money and pay bills.

You Have Many Options

There are many options that are available such as budgeting, credit counseling from a reputable organization, consolidation, negotiation, or bankruptcy. Consumers should choose which option based on the level of money that is owed as well as how disciplined they are. Most libraries and bookstores have financial books on financial management. This can be a very good place to start researching which option is best.



Tax Debt Relief

Tax debt relief is needed for persons who have failed to file returns and therefore are being pursued by the IRS for compensation of back taxes. These back taxes are based on "Substitute For Return" (SFR) filings which the IRS filed for those negligent in doing their own. These returns are constructed from the W-2's and other notifications of income that are filed by employers to one's social security number. Professional assistance is needed especially when returns are left to the government's SFR's over an unspecified period of time but is marked by significant amounts owed and repeated attempts by the IRS to gain repayment that the taxpayer ignores. Relief from tax debt will often require litigation and a professional attorney experienced in this kind of debt. Relief is possible without imprisonment; however, criminal suits are possible and imprisonment assessed at one year of incarceration for each year of unfiled taxes.

Delinquent taxpayers become targets of an IRS investigation for numerous reasons. Other than deliberate refusal to pay taxes, those unpaid taxes are the result of misunderstandings of tax law code, death in the family, a serious illness, not enough money to pay what they owe, failure to withhold enough from their pay, changes in financial circumstances, among other reasons. Taxes still are due regardless of any situation. When the IRS has attempted to get a delinquent taxpayer to make good on his end without success, the alternative action - following repeated notifications, penalty accrual, wage garnishments - is prosecution. Tax debt relief is available by requesting the IRS Taxpayer Advocate Program or seeking a professional attorney for help.

Tax debt relief covers several aspects of assistance: wage garnishment, innocent spouse involvement, bank levies, bankruptcy, payroll tax problems among other situations. Ignoring these situations from the time they begin is usually the greatest reason that people end up in this kind of trouble. It cannot be stressed enough that taxes are an unavoidable part of the American income system, and despite one's loathing of the system, if the duty to pay is ignored or refused, an accountability will be required. Unpaid taxes will eventually be criminally prosecuted unless the problem is addressed and assistance is sought.