What is income tax?

Income tax relief, also known as income tax relief, is any legal short -term or long -term solution that individuals or government tax agency for income tax compensates. The income tax debt concerns the money owed to the government tax agency, such as the Internal Revenue Service (IRS) in the United States, originating in any current or past tax return. Income tax debt may include income tax, combined with any accumulated interest and sanctions.

Short -term solutions for income tax relief include loans from a family member or friend; to have income tax sales, which means the sale of any cash or disposal valuables; or discard a short -term personal loan. If these options are not available, the Income Tax Acts may allow a government tax agency to offer a number of long -term solutions to the government's tax agency. In the US, taxpayers can apply for an offer in the compromise (OIC) or dohOnce on an IRS repayment. The tax relief Act also enables an atvalial solution of income tax debt called "tax bankruptcy".

OIC can provide tax relief to taxpayers who cannot pay their tax debt in full or if there is no possibility. The offer in the compromise is an agreement between the IRS and the taxpayer who solves the debt of the taxpayer. The fee is paid for submission, but in some cases it can give up. With OIC, the IRS may decide to deal with the debt of taxpayers by accepting less than full payments, if there is doubt about liability, doubt about collectibility if the collection of tax has created economic problems, or if it were unfair and unfair.

IRS repayment contract, which is also called payment option, payment plan or payment agreement, is an agreement between the IRS and the taxpayer to make payment from the taxpayed taxes. To taxpayers will be a timeThe fee for the commencement of the repayment agreement and the interest of the sanction. Interest and sanctions may be minimized that the taxpayer is able to resolve his tax debt immediately or in several months. Taxpayers who fall under a certain threshold in combined tax, sanctions and interest are eligible to use an online payment contract (OPA).

In the case of tax bankruptcy, taxpayers must contact the tax representative to help with this process. In general, if taxes are sufficiently old, they are released according to the Bankruptcy Code in Chapter 7.