Federal income tax dates back to 1862 when Congress granted the government permission to collect taxes from citizens in an effort to pay for the Civil War. This federal income tax was only intended as a temporary situation, but in 1913 the 16th Amendment to the Constitution made it a permanent fixture in the American tax system.
While a major part of the American tax system, there are hundreds, if not thousands, of people who are unable to meet their financial obligation to the IRS. These people are facing a situation where wages, bank accounts, and possessions could be seized in an effort to pay that back IRS tax. If you find yourself in this type of situation, do not stress. There is tax debt relief available.
People who have had difficulty paying owed taxes or failed to file may be eligible for tax debt relief. There are several different forms of bad tax relief that may be able to help turn this hopeless situation into a positive experience. The type of tax debt relief that will be used to help a person facing a fed tax lien or potential federal tax penalties will vary depending upon the situation and the financial background of the individual in question.
One of the most popular forms of tax debt relief comes in the form of negotiation. A program known as the Offer in Compromise or OIC program allows people who owe back taxes to irs to negotiate to pay a settled amount that is less than the amount owed. This program is available to individuals who are able to make regular payments to the IRS and who can prove they have no way to pay back the original debt.
Another popular form of tax debt relief is a request for an audit. Most individuals fear a tax audit, but when back taxes are owed an audit may help. Occasionally, back taxes penalties can be assessed when the situation does not call for those penalties. An audit request will help encourage the IRS to closely look at a case and determine if the penalties or lien were imposed properly.