Tax Relief Myths Debunked: Know the Facts
As a strong advocate for understanding and navigating the complex world of taxes, Brightside Tax Relief is committed to helping taxpayers know the facts and dispel false beliefs. This nationwide tax relief company lives by the motto: “Knowledge is power.” And in this case, understanding the truth about tax relief can make a huge difference in debunking the myths that surround it.
Myth 1: You Can Eliminate Taxes Completely
One common myth is that tax relief can entirely eliminate your tax liability. However, this is a misconception. Tax relief strategies, like an Offer in Compromise (OIC), can significantly reduce your tax liability, but they usually do not eliminate it. An OIC is an agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer’s tax liabilities for less than the full amount owed.
Myth 2: Only the Wealthy Need to Worry About Taxes
A common belief is that only the rich need to worry about paying taxes, but that couldn’t be further from the truth. The reality is that as long as you generate income, you are liable to pay taxes, regardless of your income level.
Myth 3: All Tax Relief Companies are Scams
There is a prevailing myth that all tax relief companies are out to defraud people. While there may be fraudulent companies out there, credible ones like Brightside Tax Relief operate within the confines of the law, offering services that assist taxpayers with their tax issues.
Myth 4: The IRS Will Not Seize Your Property
Contrary to common belief, the IRS can and has seized properties in cases where taxes were owed. In fact, they have several collection methods at their disposal, including garnishments, liens, and seizures.
Myth 5: Tax Debt is Not a Serious Matter
It’s often mistakenly believed that owing taxes to the IRS isn’t a serious issue. Taxes represent a debt to the government, and unpaid taxes can result in penalties, liens, and legal action. Therefore, you should take tax debt seriously and address it promptly.
Myth 6: People who owe Back Taxes Will go to Jail
While the IRS takes tax obligations seriously, not everyone who owes back taxes will face jail time. Criminal charges are generally reserved for cases of tax evasion or fraud, not for a person who simply owes back taxes.
Myth 7: Bankruptcy Means No More Tax Debts
A commonly held myth is that filing for bankruptcy will wipe out all your tax debts. While it’s true that bankruptcy can often relieve some forms of debt, not all tax debts can be discharged in bankruptcy. You will still owe certain types of taxes after filing for bankruptcy.
Facts from the Expert Resources
We believe that unearthing the facts from prevalent myths about tax relief can bring a great sense of clarity and relief. We encourage you to delve into this source from the IRS as an additional resource.
Debunking these common myths is crucial to understanding what tax relief really involves. At Brightside Tax Relief, we’re committed to offering the most accurate information about tax relief and assisting you where possible to navigate the taxing path of tax relief. Dispel the myths and take control, because understanding your tax obligations is the first step towards financial freedom.