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Taxpayers can be stressed out when they owe back taxes to the Internal Revenue Service and are not able to write a check to pay off the amount owed. Having a tax bill can be scary and the IRS has a track record of being an evil, monolithic empire staffed by heartless, harsh personnel who live to make taxpayer's lives dismal. Fortunately the reality is much kinder. While Congress has been criticized for a lack of action on many concerns over the past few years it did American taxpayers a couple of favors by instructing the IRS to put in place several tax relief packages to assist individuals with genuine problems repaying their tax debts. Regretably most of these relief programs have been given very little press coverage and the majority of individuals who owe back taxes are not aware of the possibilities available to them. The most common error made by individuals who have a tax bill is dismissing the IRS and hoping that they will vanish. Trust us, this never works. The IRS has a specific mandate from Congress; collect all of the taxes to be paid by individuals and corporations. Just because someone won't respond to a request for information and facts or a tax bill will never mean that the IRS will stop looking to collect. Just by acknowledging that you received the notice from the IRS might help any future communications from being routinely confrontational. Getting a notice from the IRS will not mean that what the IRS is claiming is right. Recent reviews by independent groups reveal that the IRS has wrong details or has made an incorrect determination in nearly 20% of the demands for taxes due sent out. Study the notice very carefully and understand what the IRS request is based on. You normally have up to 60 days to reply to 1st or 2nd requests for information so be thorough in your reply. If you have paperwork to challenge an IRS contention, present them and your response in a straightforward, even form. Avoid getting defensive or rude, accusing the IRS of incompetence will never make things any less difficult for you. If you do owe taxes, there are programs available to you to help you pay them in installments. Never presume that a payment plan is instantly put in place, you will need to work with the IRS to figure out what you are able to afford and how long the payment schedule should be. Bear in mind that interest will also be accruing while you're dealing with the IRS and throughout your repayment time period. It is important that you maintain the scheduled payments and keep all payments current, being in default on your tax repayment plan takes away all versatility in dealing with the IRS. Yet another opportunity for tax relief is tax reduction. In cases of personal disaster or emergency the IRS may possibly decrease the total of the principal you owe. This method involves a lot of proof of catastrophe and just how the event or events caused personal and financial hardship. This might require you to use a tax professional who can help you file the proper paperwork necessary to have the IRS consider your request to lower your tax bill. However, if your tax bill is considerable the cost of a tax lawyer may very well be much less than the amount of tax relief that you end up obtaining. Though there are no guarantees of relief when you are dealing with the IRS, some basic rules do apply that should help your case. Answer back quickly, be professional and polite and sincere, have correct paperwork and be certain that you live up too all of the promises you make. Tax relief is possible but the process demands persistence and openness.