Tax Relief In Orlando, FL – How It Works

Tax Relief In Orlando, FL – How It Works

You may have heard of the term tax relief but are unsure how it works or if it’s something you can qualify to receive. Here at J David Tax Law in Orlando, FL, we want to help you understand this concept. The following article provides in-depth information on how tax relief works, several tax relief programs that can be negotiated, and ways to find out if you qualify for tax relief.

The Basics of Tax Relief

As a simple definition, tax relief is a reduction or relief in taxes you owe to the IRS. Individual people or businesses may face large tax debt, bank levies, wage garnishments, or Federal or State tax liens. The majority of those people who are faced with these tax debt problems need relief from the taxes they owe.
There are many methods to help reduce this tax debt that an individual or business may have incurred. Some examples are tax relief programs such as the Fresh Start Program, an installment agreement, currently non-collectible hardship status, offer in compromise, or a penalty abatement. Another tax relief method is a tax debt reduction which helps reduce tax liability which reduces the taxes you owe. Tax credit is also another tax relief method which covers something you did in your business or life. It is important to note that these complex tax matters and negotiations are best to be handled by a trusted and experienced tax attorney at our office on Orlando, FL.

Tax Debt Relief Programs

Interests and various penalties result when you do not pay the taxes you owe. This can cause issues that impact your future tax refunds, obtaining loans, receiving or keeping security clearances, and renewing or keeping a valid passport.
Multiple tax debt relief programs can be negotiated to relieve you or your business from these tax debt issues. While we are not a tax relief company, we at J David Tax Law have a team of experienced tax attorneys in Orlando, FL to provide our clients with tax relief. We will represent you as we fight the IRS or State tax agencies to negotiate and resolve your tax debt issues in the shortest amount of time possible.

Installment Agreement

Federal or State tax liens and bank levy actions are some consequences that arise when failing to pay your taxes on time. Installment agreements are a method to help with paying taxes you owe. An Installment agreement is a type of payment plan made with the IRS that states that you will agree to pay the taxes you owe in installments within a specific amount of time. These installments must be paid on time.
Although an installment agreement has been made, the IRS or State agencies can mandate payments that are unaffordable. Our experienced tax lawyers work with the IRS to negotiate installment agreements that are on your own terms and not the tax agency terms.

Currently Non-Collectible Hardship Status

There has been a provision in the tax code that allows for a Currently Non-Collectible Hardship. A Currently Non-Collectible Hardship Status can be negotiated for individuals or businesses that cannot pay their tax liability. Our tax lawyers have negotiated Currently Non-Collectible Hardship Status for thousands of our clients. When applied correctly, this status can be a method to relieve wage garnishments or bank levies. For many people, this can be the best option to relieve them from the heavy burden of Federal or State tax debt. Over the years, we found that 68% of those who owe Federal or State taxes and are represented by our experienced tax attorneys in Orlando, FL can be negotiated into a Currently Non-Collectible Hardship Status. We consistently provide relief from Federal or State tax liens, bank levies, and wage garnishments. For wage garnishments, we can have them released within 48 hours in most cases.

Offer in Compromise

An agreement between you and the IRS or State that settles your tax liabilities for less than what is owed is known as an Offer in Compromise or OIC. However, if you can fully pay your liabilities through an installment agreement, an Offer in Compromise will be impossible to negotiate. To qualify for an Offer in Compromise the following steps need to be taken:

You need to file all delinquent tax returns;

Pay all current year estimated tax payments; and

Make all current quarter federal tax deposits (applies to business owners with employees).

Offer in Compromise is a limited tax relief solution. Only 11% of individuals and businesses with tax debt will be able to qualify. The IRS measures the ability to pay and future income using Reasonable Collection Potential.
Scams arise in regard to Offer in Compromise. Many unscrupulous tax relief companies scam taxpayers by saying they can wipe away tax debt with an Offer in Compromise.  They use it as a bait and switch tactic. This can be seen in commercials on late night television where they claim that “we can settle your tax debt for pennies on the dollar.” Be aware and do not fall prey to this tactic. Our tax lawyers in Orlando, FL are experienced to work with you to prepare and negotiate your Offer in Compromise agreement with the IRS or State. They also work with what is included in your Reasonable Collection Potential analysis.

Penalty Abatement Relief

If individuals, small business owners, and self-employed individuals attempted to comply with law requirements but failed to meet their tax obligations for any reason beyond their control, they may qualify for relief from penalties incurred from unpaid taxes. Not paying on time and not depositing certain taxes when required are two penalties that are eligible for relief. Our experienced tax attorneys in Orlando, FL work with the IRS or state to negotiate various forms of tax relief. This includes reasonable cause penalty abatement, first-time penalty abatements, and statutory exceptions.

Find Out if You Qualify for Tax Relief

If you schedule a no-cost professional consultation with J. David Tax Law today, you can find out if you qualify for tax relief. We provide customized tax debt relief solutions to meet your individual or business tax needs to help you overcome your tax problems and successfully get on with your life. To ensure professional tax representation that is affordable to everyone, we offer flexible payment plans. Throughout the United States we have represented thousands of individuals and businesses resolve their tax debt. Our experienced tax attorneys will keep you informed throughout the tax debt relief process while fighting for a resolution.