If you find that you are now having to deal with wage garnishment due to having back taxes and want to get yourself tax relief from it then you should go for it. While this may at first seem like it would not be in your best interests, you can’t stop wage garnishment for a vague amount that you’re afraid you might owe in case that you filed. There has to be a tax return with an amount due, even if both you and the IRS dispute the amount. If you need to go about doing this then your best bet is to consult a tax settlement attorney in order to figure out how to fill out the tax return so that you can make certain that you are going to protect your interests.
Collect evidence to document your reason for seeking an Offer in Compromise, based on one of the above choices, and make sure you’ve met all the other IRS requirements. OICs are not available for persons in bankruptcy, those who haven’t filed their current tax returns or those who haven’t paid their current required withholding or estimated taxes.
When it comes to property tax solutions you should choose the reason that you believe will qualify you for debt relief through an Offer In Compromise. There are three different main reasons why you would be able to qualify for this and they are: doubt as to collectability, or doubt as to liability, or effective tax administration. Doubt as to collectibles means that the IRS believes that you are not going to be capable of paying back the debt simply because you have low income. Doubt as to liability means that you have evidence that can prove that you do not legally owe any money.
Effective tax administration applies directly to situations where you have the money to pay the taxes and there is no doubt that you do in fact owe them, but some other type of severe hardship would result if you were to pay them such as not having enough money for living expenses if you were to.
If your offer in compromise is accepted, you should simply pay the balance as agreed, and your tax debt relief will be completed. If it’s not accepted by chance, then there are a lot of other options outside the scope of this that you should explore in order to settle your debt with the IRS. Garnished wages don’t have to be the sticking point in your financial portfolio. Take advantage of the opportunity that you have today before it becomes too late.