"Fresh Start" can Help Your Tax Attorney Settle Tax Debt for Less Than You Owe

Tax burdens are becoming increasingly worse for Americans. The fact is the economic downturn has forced many taxpayers farther into debt than ever before. Considering hiring an attorney to help with tax issues no longer only applies to those who are facing tax fraud or evasion charges. The average American faces large and cumulative penalties and fines imposed by the IRS due to the inability to pay. As more and more American's face the loss of their home and wages due to tax debt, it is a important to consider legal help to settle tax debt.

Take a look at the most prominent risks the average American may face if they decide to go it alone against the IRS: 

• Wage garnishment
• Bank Levies
• Hefty penalties and fines
• Tax Liens

Ask yourself if fighting any of these IRS collection tactics alone are worth the risk. A professional tax settlement service will help you to reduce what you owe, put a stop to IRS harassment, stop wage garnishment, and relieve bank levies and liens. 

Even though an IRS audit or judgment can be extremely intimidating, you do have options. A tax professional can help you sort through the IRS jargon and red tape; revealing options that can reduce your tax debt for less than you owe. 

Here are some options your tax settlement professional may suggest you pursue depending on your unique situation: 

• Offer in Compromise: If you qualify, this could be an excellent resolution to your tax debt. As of this year, Offer in Compromise has expanded as an IRS "olive branch" to those facing increased debt as a result of financial hardship due to the economy. OC has been a staple of tax debt settlement, providing distressed taxpayers an option to settle their debt for less than they owe. As part of the "Fresh Start" initiative of 2012, the OC has expanded to allow individuals to settle both state and federal taxes, allow student loan payment, expanded allowable living expenses category and amount, allowed less stringent qualifications than ever before, and revised calculations of taxpayer's future income. Because of the recent revisions OC may be the golden ticket to resolving your tax issues. 

• IRS Penalty Relief: Unfortunately, penalties and fines on delinquent taxes can often dwarf what a tax payer actually owes. As part of "Fresh Start," the IRS has offered penalty relief to those who qualify. Self employed individuals can be relieved of penalties if they have experienced a 25% decrease in income during the year of 2011 due to economic downturn. Another applies to those who lost wages due to unemployment during the year of 2011 or 2012.

• Installment Agreements: The installment agreement option used to have a ceiling of $25,000 in tax debt for acceptance. The threshold has been expanded to reach $50,000 in debt. This opens the door of relief to those who are facing dire straits due to tax debt. The paperwork requirements and financial information requested by the IRS to qualify has also become more lax. 

With the new tax relief efforts by the IRS going in full effect, it is time to get your affairs in order and finally gain peace of mind knowing there is hope for an end to your tax related debt worries. For more information on how a professional tax attorney can help you get your life back on track, please contact the professionals at Optima Tax Relief. For More Information Click HERE.