A 10-Point Plan for Resources (Without Being Overwhelmed)
When people fail to meet their tax obligations, they are penalized. The biggest fear any taxpayer has is the fear of being penalized. Normally, a person is unable to pay his taxes due to financial problems and being penalized is a burden on top of another burden. There is, however, a way for such people to evade these penalties. The way to avoid the penalties is through tax reliefs.
When your tax payments are delayed, the only way to evade the penalties is by tax relief. The different methods of tax relief are kept away from the public eyes by the tax firms as much as possible. The accessibility of the information regarding tax reliefs is however not entirely impossible. There are seven established methods of tax relief namely bankruptcy, hardships, making partial payments, streamline pay agreements, penalty abatement, offer in compromise and the amendment of own tax obligation. Three of the most effective methods of getting tax relief among the seven are cited below.
The first and the surest way of getting a tax relief is bankruptcy. Part or the whole of a person’s tax debt may be lifted if a person or institution is declared bankrupt. The interpretation of this concept is that the person has no way of paying the debt he owes the tax collection authority. However, if you apply for a tax relief when in the middle of applying or filing for bankruptcy, there is a high possibility of being denied the tax relief. A clear guidance on applying for this type of relief can be given by your attorney.
Tax relief can also be gotten by people who are undergoing temporary or permanent hardships. Tax obligations, as well as any penalties, are exempted from these people undergoing hardships by the tax collecting body. When one is hit by disasters like earthquakes and tsunamis, having a permanent medical condition that affects your income generation among others, they may be considered for a hardships tax relief. When such happens, you only need to file for tax relief quoting the hardship as the reason for exemption.
The partial pay agreement with the tax collection firm is the third method of obtaining a tax relief. As a taxpayer, you may enter into an agreement with the tax collection firm to allow you to make your payments in agreed monthly remittances and not necessarily in full. Once accepted, you will then be able to make little agreed minimum payment of your owed taxes. This solution can work best if the chunk being taken by tax is crippling your other activities and needs. Though very little is known about this and the other methods of obtaining tax reliefs, all of them are genuine ways of getting tax reliefs.