The Optima Tax Relief team has had one vision since inception – to help Americans nationwide deal with the aggressive collection policies of the IRS and state tax agencies. Optima is a leader in tax relief because we put our experience to work using proven strategies. Our knowledgeable experts can assist you through tax audits, help resolve your tax debt, and help stop wage garnishments and bank levies from happening. The tax relief experts at Optima Tax Relief are available to be your dedicated resource to save you the most money while resolving your IRS debt in the shortest amount of time possible.

What is Tax Relief?

Dealing with tax issues with the IRS can seem overwhelming, especially if you have fallen behind on your taxes and into collections. Taxpayers who have an unpaid bill with the IRS risk wage garnishments, bank levies, as well as penalties and interest on their unpaid taxes.

Those who have unfiled tax returns, owe a tax liability or face an audit with the IRS should look into tax relief options that can resolve their outstanding issues. Tax relief can assist those in collections by getting a taxpayer set up on a payment plan or hardship agreement or by negotiating a compromise with the IRS that brings them into compliance with the IRS.  

Understanding Tax Relief: Common Tax Relief Options

The IRS offers taxpayers multiple options to resolve outstanding tax debts. Here are four commonly available options to taxpayers who owe back taxes to the IRS:

1. Installment agreement

If you require an extended period of time to pay off your tax bill, the IRS will typically accept a payment plan, also known as an installment agreement. Individuals who have a balance over $25,000 are required to use direct debit. Businesses with balances over $10,000, must also pay with by direct debit.

2. Offer in Compromise 

If you are experiencing extreme financial hardship, the IRS may allow you to resolve your tax debt for less than what you owe. Called an Offer in Compromise, the IRS extends this is option only when a taxpayer has proven that they are unable to pay their debt in full or that doing so would create significant financial hardship. The IRS considers the following factors when deciding if a taxpayer qualifies for an Offer in Compromise:

  • Your income and expenses.
  • Any assets you may have.
  • Ability to pay.

3. Penalty Abatement

If you’re facing penalties for not filing or paying your taxes on time, you may be able to get those penalties removed through either a penalty abatement or a penalty adjustment. Abatement is the elimination of an assessed tax liability, while an adjustment is simply a reduction or alteration of it. In some cases, you can even get past penalties and interest refunded.

4. Request for an Extension 

If you have the ability to pay your balance in full but need some time to get the money together, the IRS will allow you to request a one-time extension. You can request up to 120 days to pay your tax balance in full. It is important to keep in mind that the IRS will apply a 0.5% penalty per month for the unpaid balance and will only allow you to make this extension once. If you do miss the extension date, you will fall back into collections.

Tax Relief in Disaster Situations

Americans that have been affected by hurricanes, floods, wildfires, pandemics, earthquakes, and other natural disasters could be offered special tax relief. Disaster victims may qualify for extensions and could possibly claim casualty losses on their federal income tax returns. 

Coronavirus Tax Relief

As part of the U.S. government’s ongoing response to the Covid-19 pandemic, some tax rules have changed, and new coronavirus tax relief initiatives may be available. Find the latest coronavirus news for taxpayers, families, business and tax-exempt entities on our blog.

Latest Tax News

2020

How Long does it Take to be Placed on an IRS Agreement?

Is My Social Security Number Required in Order to File My Taxes?

How Long does it Take to be Placed on an IRS Agreement?

Commonly Asked Tax Questions

Could I Use My Market Losses to Reduce Taxes?

Everything You Need to Know about a Tax Exemption

I Didn’t Pay my Tax Balance by July 15. Now What?

Taxpayers should Report Tip Income on Their Tax Return

Can Retirement Contributions Impact your Tax Bill?

Four Reasons Why You Should File a Tax Extension

Am I Required to Make Estimated Tax Payments?

Why You Might Owe After Filing Your Taxes

How to Make a Payment to the IRS

Is a Tax Relief Company Beneficial for You?

Is Working with the IRS Your Only Option?

Avoid any Tax-Time Surprises by Following these Simple Rules

2019

What is Tax Evasion and How can it Affect You?

Has the Tax Cuts and Jobs Act Benefited You?

What Should You do if You Owe the IRS Money?

The Difference Between a Lien, Levy, and Garnishment

Common Mistakes Taxpayers Make when Filing their Tax Return

10 Tips for 1099 Filers and Small Business Owners

Can Optima Tax Relief Help You?

As our name indicates, Optima Tax Relief provides tax relief to Americans who need assistance when dealing with the IRS. Optima’s is America leading tax resolution firm, having resolved over one billion dollars of tax debt for our clients. We help thousands of people and small businesses get compliant with the IRS, empowering them to put their tax problems to rest so they can move forward towards a better financial future.  Our tax experts have the experience to resolve almost any IRS problem. Contact us today to receive a free consultation and see how our personalized care and solutions can be crafted to fit your unique situation.