Can a recent loss of income be used as a basis for requesting relief from the tax liability?

Suppose that a taxpayer has not been able to present his income statement for the last two years of the taxable period. He then lost his job and the IRS began demanding that the back taxes be paid or he would face possible prison time. Hard, but this situation may be possible. Can this taxpayer take advantage of tax debt relief?

If he can! He didn’t mean to pun here, but he can really take advantage of this program. In fact, this is precisely why tax debt relief is offered so much more than ever before. Tax debt relief was expanded to help taxpayers ease financial burdens from the recession.

Although the non-presentation of income tax returns is a crime. However, if withholdings were collected, it is a matter of reconciling documents to prove that said taxes were paid. Still, the IRS needs to get the returns to verify that the correct amount was remitted. If it is determined to be insufficient, the back taxes must be paid thereafter.

The moment is right for this taxpayer, because through the relief of the tax debt he can escape being penalized. What you can start to do is prepare proof of withholding payments. This equates to two years of tax preparation, but it must be done. Then, hire a tax attorney to represent you in legal proceedings with the IRS.

When the amount of back taxes is very significant, the taxpayer should not deal with it alone. This time it would cost him his freedom not just money, if he does it à la Rambo. Therefore, it is better to trust a tax relief expert to do the dirty work of getting you tax debt relief. Rescuing yourself from this problem alone will never help.

While a negligible amount may also need tax relief experts, the process won’t be as bloody as when it’s significant. Perhaps an agreement not to pay back taxes could be granted if the financial situation is really dark. The important thing is for the taxpayer to take action immediately, while the tax debt relief is still available. Who knows in a year or two, when the recession is over, this will just pick up?