FAQ’s

What is tax relief, and how can it benefit me?

Tax relief refers to any program or incentive that reduces the amount of taxes owed by an individual or business. This can include deductions, credits, or settlements. By leveraging tax relief options, taxpayers can potentially reduce or eliminate back taxes, penalties, and interest, making their financial burden more manageable.

Am I eligible for tax relief?

Eligibility for tax relief largely depends on your specific financial situation, the type of taxes owed, and the reason for your debt. Common situations that might qualify for relief include financial hardship, errors in tax assessment, or circumstances like illness or unemployment that affected your ability to pay. We recommend scheduling a consultation with our experts to assess your unique case.

How does the tax relief process work?

The tax relief process generally begins with an assessment of your financial situation and a review of your tax debt. Based on this information, our team will determine the best strategy for resolution, whether that be an offer in compromise, an installment agreement, penalty abatement, or another solution. Once a plan is established, we’ll work with the IRS or state tax agency on your behalf to negotiate and implement the solution.

How long does it take to resolve my tax debt with your help?

The duration of the tax relief process can vary widely based on the specifics of your case and the solution pursued. Simple penalty abatements may take just a few weeks, while complex offers in compromise can take several months. Our team works diligently to expedite the process and achieve a resolution as quickly as possible.

What are the fees associated with hiring a tax relief company?

Our fees vary based on the complexity of your case and the type of solution pursued. We pride ourselves on transparency and will provide you with a clear fee structure during our initial consultation. Remember, investing in professional assistance can often result in significant savings in the long run, as we aim to secure the best possible resolution for your tax debt.

What are the different types of tax relief?

There are two main types of tax relief: tax credits and tax deductions. Tax credits directly reduce the amount of taxes you owe, while tax deductions reduce your taxable income.

How do I know if I am eligible for tax relief?

There are many different types of tax relief, and each has its own eligibility requirements. You can review the IRS website or consult with a tax professional to determine if you are eligible for any specific type of tax relief.

How do I apply for tax relief?

The process for applying for tax relief varies depending on the type of relief you are seeking. For example, to apply for the Earned Income Tax Credit, you must file a tax return and claim the credit on Form 1040. To apply for an Offer in Compromise, you must submit Form 656.

How long does it take to process a tax relief application?

The processing time for tax relief applications varies depending on the type of relief you are seeking and the complexity of your case. For example, Offer in Compromise applications can take several months to process.

What are the benefits of tax relief?

The benefits of tax relief can include:

• Reduced tax liability
• Increased disposable income
• Improved credit score
• Avoided penalties and interest

How can I avoid tax scams?

There are a few risks associated with tax relief, such as:

• The IRS may not approve your application
• You may have to pay additional fees to a tax professional
• You may be audited by the IRS

How can I avoid tax scams?

There are a number of things you can do to avoid tax scams, such as:

• Be wary of unsolicited offers of tax relief
• Never give out your personal information over the phone or email
• Do your research on tax professionals before hiring them
• File your taxes on time

What should I do if I am audited?

If you are audited, the IRS will send you a letter explaining the audit and what you need to do. You should gather all of the requested documentation and cooperate with the IRS auditor. If you have any questions, you should consult with a tax professional.

What are the resources available to help me with tax relief?

• The IRS website
• Taxpayer Advocate Service
• Free Tax Preparation for You
• Low Income Taxpayer Clinic

What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a tax credit for low- and moderate-income workers. It can reduce your tax liability or even give you a refund.

Who is eligible for the EITC?

To be eligible for the EITC, you must meet the following requirements:

• You must have a valid Social Security number
• You must have earned income
• You must have a qualifying child
• Your income must be below a certain threshold

How do I apply for the EITC?

To apply for the EITC, you must file a tax return and claim the credit on Form 1040. You can also use the IRS’s EITC Assistant to help you determine if you are eligible for the credit and how to claim it.

What is the Child Tax Credit?

The Child Tax Credit is a tax credit for parents and guardians of qualifying children. It can reduce your tax liability or even give you a refund.

Who is eligible for the Child Tax Credit?

To be eligible for the Child Tax Credit, you must meet the following requirements:

• You must have a valid Social Security number for yourself and your child
• Your child must be under the age of 17
• Your child must be a US citizen or resident alien
• Your income must be below a certain threshold

How do I apply for the Child Tax Credit?

To apply for the Child Tax Credit, you must file a tax return and claim the credit on Form 1040. You can also use the IRS’s Child Tax Credit Assistant to help you determine if you are eligible for the credit and how to claim it.

What is the American Opportunity Tax Credit?

The American Opportunity Tax Credit is a tax credit for students who are paying for qualified education expenses. 

Who is eligible for the American Opportunity Tax Credit?

To be eligible for the American Opportunity Tax Credit, you must meet the following requirements:

• You must be a student enrolled at an eligible educational institution at least half-time
• You must be pursuing a degree or other recognized educational credential
• You must have paid qualified education expenses for yourself or a dependent
• Your income must be below a certain threshold

How do I apply for the American Opportunity Tax Credit?

To apply for the American Opportunity Tax Credit, you must file a tax return and claim the credit on Form 1040. You can also use the IRS’s American Opportunity Tax Credit Assistant to help you determine if you are eligible for the credit and how to claim it.

What is the Lifetime Learning Credit?

The Lifetime Learning Credit is a tax credit for students who are paying for qualified education expenses. It is similar to the American Opportunity Tax Credit, but it does not have the same income limitations.

Who is eligible for the Lifetime Learning Credit?

To be eligible for the Lifetime Learning Credit, you must meet the following requirements:

• You must be a student enrolled at an eligible educational institution
• You must be paying qualified education expenses for yourself or a dependent
• You must not be claiming the American Opportunity Tax Credit for the same student

How do I apply for the Lifetime Learning Credit?

To apply for the Lifetime Learning Credit, you must file a tax return and claim the credit on Form 1040. You can also use the IRS’s Lifetime Learning Credit Assistant to help you determine if you are eligible for the credit and how to claim it.

What is the standard deduction?

The standard deduction is a tax deduction that you can claim without having to itemize your deductions. It is a flat amount that is deducted from your adjusted gross income to reduce your taxable income.

How do I claim the standard deduction?

To claim the standard deduction, you simply need to check the box on Form 1040 that says “Claim standard deduction.”

What are itemized deductions?

Itemized deductions are tax deductions that you can claim for specific expenses. Some common itemized deductions include:

• State and local taxes
• Mortgage interest
• Charitable contributions
• Medical expenses
• Student loan interest

How do I claim itemized deductions?

To claim itemized deductions, you must file Schedule A of Form 1040. You must also keep detailed records of your expenses.

What are some common itemized deductions?

Some common itemized deductions include:

• State and local taxes
• Mortgage interest
• Charitable contributions
• Medical expenses
• Student loan interest

Can I deduct my student loan interest?

Yes, you can deduct up to $2,500 of student loan interest each year. To claim this deduction, you must file Schedule A of Form 1040.

Can I deduct my mortgage interest?

Yes, you can deduct the mortgage interest that you paid on your primary residence and one second home. To claim this deduction, you must file Schedule A of Form 1040.

Can I deduct my state and local taxes?

Yes, you can deduct the state and local income taxes that you paid. To claim this deduction, you must file Schedule A of Form 1040.

Can I deduct my charitable contributions?

Yes, you can deduct the charitable contributions that you made to qualified organizations. To claim this deduction, you must file Schedule A of Form 1040.

Can I deduct my medical expenses?

Yes, you can deduct the medical expenses that you paid for yourself and your dependents. To claim this deduction, you must file Schedule A of Form 1040

Can I deduct my business expenses?

If you are self-employed, you can deduct your business expenses from your business income. To claim these deductions, you must file Schedule C of Form 1040.

What is the Offer in Compromise (OIC) program?

The Offer in Compromise (OIC) program is a program that allows taxpayers to settle their tax debts for less than the full amount owed.

Who is eligible for the OIC program?

To be eligible for the OIC program, you must meet the following requirements:

• You must have a tax debt that is greater than $10
• You must have made a good faith effort to pay your taxes
• You must be unable to pay your tax debt in full within a reasonable period of time

How do I apply for the OIC program?

To apply for the OIC program, you must submit Form 656 to the IRS. You will also need to submit supporting documentation, such as financial statements and proof of income.

What is the Installment Agreement (IA) program?

The Installment Agreement (IA) program is a program that allows taxpayers to pay their tax debts in installments. To be eligible for the IA program, you must meet certain requirements, such as having a tax debt that is less than $100,000 and being able to make monthly payments on your debt.

Who is eligible for the IA program?

To be eligible for the IA program, you must meet the following requirements:

• You must have a tax debt that is less than $100,000
• You must be able to make monthly payments on your debt
• You must have filed all of your required tax returns

How do I apply for the IA program?

To apply for the IA program, you can call the IRS or submit Form 9465 online.

What is the Currently Not Collectible (CNC) status?

Currently Not Collectible (CNC) status is a status that the IRS can give to taxpayers who are unable to pay their tax debts. If you are granted CNC status, the IRS will not collect your tax debt until your financial situation improves.

Who is eligible for CNC status?

To be eligible for CNC status, you must meet the following requirements:

• You must have a tax debt that you are unable to pay
• You must have made a good faith effort to pay your taxes
• You must be cooperating with the IRS

How do I apply for CNC status?

To apply for CNC status, you must submit Form 433-F to the IRS. You will also need to submit supporting documentation, such as financial statements and proof of income.

What are the penalties and interest for late tax payments?

The penalty for late tax payment is 0.5% of the unpaid taxes for each month or part of a month that the tax remains unpaid, up to a maximum of 25%. The interest rate is the federal short-term rate plus 3%.

What happens if I don’t pay my taxes?

If you don’t pay your taxes, the IRS can take a number of actions, including:

• Filing a tax lien against your property
• Garnishing your wages
• Seizing your property

Can I get a tax lien?

Yes, you can get a tax lien if you owe taxes to the IRS. A tax lien is a legal claim that the IRS has on your property. The IRS can file a tax lien against any property you own, including your home, car, and bank accounts.

Can my wages be garnished?

Yes, your wages can be garnished if you owe taxes to the IRS. Wage garnishment is a process where the IRS takes money directly from your paycheck to pay your tax debt.

How can I get out of tax debt?

There are a number of ways to get out of tax debt, such as:

• Paying your tax debt in full
• Setting up an installment agreement with the IRS
• Applying for an Offer in Compromise
• Filing for bankruptcy

What should I do if I am being harassed by the IRS?

If you are being harassed by the IRS, you should contact the Taxpayer Advocate Service. The Taxpayer Advocate Service is an independent office within the IRS that helps taxpayers who are experiencing problems with the IRS.

What are my rights as a taxpayer?

As a taxpayer, you have a number of rights, including:

• The right to be treated fairly and with respect
• The right to privacy
• The right to be informed of your tax obligations
• The right to appeal IRS decisions

Where can I get help with tax debt?

There are a number of places where you can get help with tax debt, such as:

• The IRS website
• The Taxpayer Advocate Service
• A tax professional
• A legal aid organization

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