Tax debt is a very common term and also a very common problem for many Americans. Around $458 billion is the amount Americans fail to pay in taxes. Tax gap can be the difference between the taxes an individual owes to pay and what they pay on time. Taxes on income that is not declared are also included. The Federal budget deficit was $779 billion in 2018, which is the highest in six years. The budget deficit leads to inflation. As taxpayers, it is necessary to know the tax debt that one has. As one of the popular companies, Tax Debt Pro^TM has more than two decades of experience in offering tax relief to its customers. Know how much tax debt you have by answering a few simple questions.

What is the IRS tax relief program?
Any program that assists taxpayers in paying off their tax debts is a tax relief program. Installment agreements and penalty abatement are some of the commonly known tax relief programs. If executed properly, IRS tax relief programs hand in a win-win situation for both the IRS and taxpayers. More the time IRS takes to collect the taxes, greater are the chances of them losing the ability to collect them and eventually are forced to write it off. IRS wrote off 19% to 28% every year from 2003 to 2011. The IRS wrote off $31.4 billion from 2012 to 2015 alone. You can resolve your tax issues simply by filling in a quick questionnaire, knowing whether you qualify for a tax debt relief and resolving any previous tax debt issues.

Following are some of the IRS tax relief programs offered to the citizens:

• Installment Agreement: Installment agreement helps the taxpayers to pay their tax debts over a period of time. IRS has streamlined the processing of installment agreement for betterment. About 90% of the people qualify for an online installment agreement. The taxpayers must owe a minimum $50,000 with up to date tax returns for qualification. Around 2.99 million installment agreements were approved by the IRS in 2015.
• Offer in Compromise (OIC): OIC reduces the tax liability of people who can’t afford to pay their tax debts. Taxpayers agree to pay a discounted amount within a period of time as per the program. The taxpayer has to pay the discounted amount in the given period else the initial debt will be reinstated. This is again a win-win situation for the IRS and the taxpayer.
• Penalty Abatement: Taxpayers can amass many penalties if they fail to file or pay their taxes. In a month around 5% of unpaid taxes are added as penalties for not filing and not paying the taxes on time. IRS can take off the penalties if the taxpayer defaulted for the first time or there is a genuine reason. Choosing the right tax debt relief company can help you simplify the process of tax debt relief process and quickly resolve any tax debt issues. So, find out whether you qualify for a tax debt relief through Tax Debt Pro^TM to get more details.
• Bank levy release: The IRS has the right to seize all the property and assets of delinquent taxpayers who do not respond to the notices. IRS has the right to make a one-time withdrawal of whatever money is available in order to pay back the debts. IRS can take a percentage of tax payer’s salary until the debt is paid. IRS can release a bank levy in the following situations:
  – The taxpayer pays off the debts.
  – An installment agreement has been initiated.
  – In times of economic hardships

IRS has placed around 1.6 million bank levies on delinquent taxpayers in 2015.

• Innocent spouse relief: Innocent spouse relief is a program which assists the taxpayer by freeing them from the responsibilities of paying taxes or penalties caused by the spouse or former spouse who failed to report properly on a joint tax return.
• Currently not collectible status (CNC): CNC status denotes that taxpayers are agreeing to pay the tax but the current financial condition is holding them back to qualify for a payment plan. In 2015, 16.3% of tax delinquent accounts were categorized as CNC by the IRS.
• Tax lien release: A lien can be placed on a property or asset of a delinquent taxpayer. A lien is like a claim which gives IRS all the authority over the tax payers property. Unless the taxpayer clears off his debts, he will not be able to see the property to anyone. IRS can release the lie if the taxpayer is willing to pay their debts.

Tax relief companies are there to assist taxpayers although they are not cheap. They help the taxpayers by representing them and negotiating with the IRS. Tax relief companies help the taxpayers in identifying which all programs they qualify and apply for a suitable program. Unfortunately, it is not that easy for a taxpayer to apply to this. Negotiating with the IRS is even more complex and the process is lengthy. It is very difficult to even getting in touch with an IRS agent. Understanding the situation and paying off their debts at the proper time will make the job of IRS and the taxpayers easy. If the situation goes out of hand, it is best to hire a qualified tax professional.

The above-mentioned points give a brief overview of IRS tax relief programs.