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Taxpayers are usually overwhelmed when they must pay back taxes to the Internal Revenue Service and are unable to write a check to clear up the debt. Having to deal with a tax bill is a little overwhelming and the IRS has a track record of being an evil, monolithic business manned by heartless, harsh employees who live to try to make taxpayer's lives difficult. Luckily the reality is much kinder. Even though Congress has been criticized for inaction on numerous issues over the past few years it did taxpayers a few favors by instructing the IRS to set up some tax relief tools to assist taxpayers with genuine problems paying their tax bills. Unfortunately a lot of of these relief programs have received hardly any press coverage and the vast majority of people who owe back taxes are not aware of the alternatives available to them. The primary error made by individuals who have a tax bill is dismissing the IRS and wishing that they will vanish. Believe me, this never works. The IRS has a specific requirement from Congress; collect the taxes owed by citizens and corporations. Just because someone doesn't reply to a demand for information and facts or a tax bill does not mean that the IRS will stop trying to collect. By just recognizing that you received the letter from the IRS might help any future contacts from being automatically confrontational. Receiving a notice from the IRS won't guarantee that what the IRS is alleging is correct. New studies by independent organizations indicate that the IRS has wrong info or has made an improper decision in nearly 20% of the requests for taxes due mailed. Study the notice very carefully and understand what the IRS demand is founded on. You typically have up to 60 days to respond to 1st or 2nd requests for information so be thorough in your answer. If you have documents to contest an IRS contention, show them and your response in a clear, even form. Don't be defensive or rude, blaming the IRS of incompetence won't make things any less complicated for you. Should you owe taxes, there are options available to you to help you pay them in regular installments. Never presume that a payment plan is instantly set up, you will need to work with the IRS to establish what you can afford and how long the repayment schedule ought to be. Keep in mind that interest will also be accumulating while you are negotiating with the IRS and throughout your repayment period. It is critical that you maintain the scheduled payments and keep all payments current, being in default on your tax repayment plan eliminates all flexibility in working with the IRS. A different option for tax relief is tax reduction. With cases of personal catastrophe or emergency the IRS may possibly lower the total of the principal due. This procedure calls for a lot of proof of disaster and just how the event or events caused personal and financial hardship. This may require you to hire a tax professional who is able to help you to file the proper paperwork needed to have the IRS consider your application to lower your tax bill. Nevertheless, if your tax debt is significant the cost of a tax lawyer may well be far less than the amount of tax relief that you end up receiving. While there are no promises of relief when you are dealing with the IRS, some basic guidelines do apply that can help your cause. Respond promptly, be professional and polite and sincere, have proper records and make sure that you honor all the commitments you make. Tax relief is achievable but the method requires patience and openness.