Finance Tax

About Tax Problems And Tax Relief

Published at 04/04/2012 22:23:30


Any employed professional can owe money to the IRS or Internal Revenue Service by mistake. Withholding errors, misunderstandings while filing a tax statement, making silly mistakes in application forms or self-employment issues can lead to increasing tax debts or IRS raids. Visits from IRS officers should not be taken lightly. In case you’re currently experiencing tax problems, you must find an immediate solution to it.


In order to solve tax problems, you must know where you’ve made mistakes. Once you locate your errors, try to fix them as soon as possible. Also, file your taxes on time and follow step-by-step instructions to avoid mistakes on first place. This procedure is tedious and time consuming however, if you’re familiar with the correct ways of filing taxes, you can easily avoid undue stress.

Experienced tax payers might be able to solve petty tax problems themselves. However, if you’ve serious issues, you should immediately hire an experienced enrolled agent, finance advisor or tax attorney for right advices.


Keep the following tips in mind if you want to resolve tax problems on your own:
- Carefully go through the notice sent by IRS officers. They’ll give you a detailed description of errors while filing, notify changes in their tax payment process and request you to submit the remaining amount. Try to process the reason behind sending you this notice and recall you’re the incidents of fling process to link your errors.

- If the amount is too big to handle, if you’re undergoing financial problems or if you’re clueless about resolving your current situation and you need time to arrange money, you can rightfully ask for a debt extension. Normally the extension period is 45 days only however, for certain tax problems, you might as well get an extended submission period.

- If you check out the first few lines of your notice, you’ll observe that it carries a unique notice number. Payers can log on to the official website of IRS website, type in their notice number and find an explanation to this problem. They can also file reports against false notices or ask an extension. You can also mail the officers if you wish to discuss your tax problems with them.

- IRS provides aid in the form of FTMS (or Fast Track Mediation Service) and OIC (or Offer in Compromise) services. While FTMS is a dispute resolving system meant for self employed businessmen or small scale businesses, OIC is meant to solve universal tax problems. Under OIC, taxpayers have to convince IRS that they’re bankrupt and make proposals for paying a small fraction of the original amount. The rest money can be arranged later on. The only problem associated with this case is that most OIC requests are declined by IRS, unless it involves health issues or grave financial crises.

- Individuals that earn less than $250,000 yearly are eligible to apply for monthly installments. Under this policy, you can pay your due sum in the form of fixed monthly amounts.

Tips and comments

These were common methods applied for resolving tax problems. In case your issue is too serious, you can ask your lawyer or financial advisor to suggest you a solution.