How Do You Spell Tax Relief? OIC, That's How

How Do You Spell Tax Relief? OIC, That's How
By Tony Schrementi

"What is that", you say? OIC stands for Offer in Compromise, and if you find yourself in the unenviable position of owing the Internal Revenue Service for back taxes that are still due and payable, then this may well be your best option.

Now the next question is, are you good candidate for an Offer in Compromise?

Whether you are an individual or a business, and you do not have the wherewithal, i.e. income, assets, or the means to pay your debt to the IRS right now or in the not too distant future, you could be a bona fide candidate for an Offer in Compromise.

What the program is designed to do is allow a taxpayer to offer an amount for settlement that is less than the undisputed total tax liability. The Internal Revenue Service will approve an OIC when what is offered is the most they can expect to collect in a reasonable time period.

Each case is evaluated on the unique facts and circumstances surrounding it. Strong consideration is given to factors such as:

1. Ability to pay.

2. The equity a taxpayer has in their assets.

3. Present and any possible future income.

4. Present and future expenses.

5. The likelihood of a change in the taxpayers circumstances for better or worse.

6. Whether the offer is in the best interests of the Government.

An Offer in Compromise is an agreement that has to be reached between the taxpayer and the IRS. Since it settles the tax liability for less than the full amount owed, without the right set of facts and circumstances an offer will not be accepted if they think the debt can be paid in full or through one of their installment payment agreements.

The Internal Revenue Service may accept an OIC based on the following three grounds:

1. Doubt of Collectibility - reasonable doubt that the taxpayer would ever be able to pay the full amount owed.

2. Doubt as to the Liability - there exists a reasonable doubt that the tax that's been assessed is correct.

3. Effective tax Administration - simply put the tax is correct and there may even be some potential to collect the full amount owed, but extenuating circumstances exist that would allow the IRS to consider an OIC. To qualify the applicant would have to demonstrate that the collection of the full amount would cause an undue hardship or would somehow be unfair and inequitable.

There you have it. Now you know what the Internal Revenue Service takes into consideration to qualify for an OIC. As you can see, it could be tricky and no place to go it alone, but with the proper representation, it could be just what the doctor ordered.

To find out if you meet the qualifications for an Offer in Compromise, you can get more information at http://www.besttaxrelief.info and maybe you'll be spelling tax relief... OIC, too!

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How Do You Spell Tax Relief? OIC, That's How

Tax Relief - Save Your Receipts

Tax Relief - Save Your Receipts
By Robert Tobias

Did you know that almost anything you purchase related to work or healthcare is tax deductible? If you did not already know this, listen up. Most of us who fall in a higher tax bracket do not look forward to the dreaded April fifteenth deadline when taxes are due.

If you owe money at the end of the year, there are special breaks you can take in order to decrease the amount you owe and help pad your pockets for the upcoming tax year.

Do you run or operate your own business? If so, save your receipts; gas, tolls, and even your monthly automobile payments can be deducted as a business expense come tax time. While the savings seem minimal, they are indeed savings and rest assured that the amount you owe will be lower should you end up owing anything.

Should you not end up owing taxes at the end of the year, you can add these deductions and get a bigger tax return. Who wouldn't want to have this nice bonus, something you can use to grow your business.

Do you donate to your local charities? Make notes of any donations you make through the year, as well as where you make those donations to. Do you donate clothes to Goodwill type stores? Make sure you get a receipt from them with an estimate of the amount of items you are donating. Come tax time you'll be happy you did.

Do you have medical expenses? The government wants to reimburse you for any health related things you have paid for out of pocket during the year. Save dental receipts, doctor receipts and hospital bills. Then when tax time rolls around, pull them out and start maximizing your deductions. The more prepared and organized you are throughout the year, the better chance you'll have with respect to saving money at the end.

Now that you are saving your receipts, where do you save them? A shoebox will do or any box or storage area where they are out of the way is fine. Keep in mind that you may not need to provide these receipts at the end of the year but it is vital to keep them close by should the IRS decide to audit you. Remember, you want to be truthful and keep good records of all of the deductions you claim should you need to prove it later.

Robert Tobias has been writing articles about personal finance for the past four years. He also enjoys writing about pet-related subjects, including why you should consider using an electric fence for dogs and the benefits of a PetSafe wireless fence.

Robert Tobias

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Tax Relief - Save Your Receipts

Washington State Property Tax Relief

Washington State Property Tax Relief
By Matt Murren

There is some welcome news for people who pay property taxes in the state of Washington. The state has enacted some regulations that will help certain property owners defer their property taxes. Basically, the property tax relief program allows homeowners to defer half of their taxes each year as long as they qualify for the program by meeting certain requirements.

Some of the requirements that are necessary in order to obtain this tax relief from the state are listed here. First of all, the applicant must have owned his or her home for the past five years and must be a current resident living in the home.

The combined household income cannot be more than $57,000.00. Also, the first half of the property taxes must be paid by the homeowner and the tax deferral cannot be more than 40% of the equity in the home. The program has no age restriction and having a disability is not a requirement.

In order to get the process started, it is essential that the homeowner complete a Deferral Application, which is available on the Clark County website. Assistance can be received by calling 360-397-2391. One important document that must be provided is a copy of something showing the amount of the home's equity.

Then, the necessary paperwork must be completed and all required documentation must be attached to the application. This will make the process run more smoothly and an answer should be received quite quickly.

If and when an applicant is approved, the state of Washington will pay the second half of the applicant's property taxes. Interest will be charged by the state and is generally based on the federal short term interest rate plus about 2%. A lien will be placed on the property and won't be removed until repayment has been made by the taxpayer.

Washington State's property tax relief program is one way for a homeowner to delay paying taxes until it is more feasible. This helps property owners to get through the hard times and have a chance to re-think their financial situation. Additional information on this program can be obtained by contacting the Department of Revenue.

Matt writes more about Property Tax Relief at http://www.tax-relief-advisor.com

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Washington State Property Tax Relief

IRS Tax Relief - How to Get the IRS to Settle Without Having to Do it Directly

IRS Tax Relief - How to Get the IRS to Settle Without Having to Do it Directly
By Erin G Kelly

I want to share how to get IRS tax relief without having to deal directly with the IRS. This is what I wish I had known last year when I decided to try and settle with the IRS on my own and ended up having them take the entire $8,000 I sent them and apply it to interest and penalties. They are not nice to deal with so don't do it yourself!

IRS Tax Relief

A little over a year ago I got a call from an IRS agent. Now this wasn't my first contact with the IRS. I had been having problems paying my taxes for a few years and this agent just happened to catch me at a time when I was feeling like maybe I could get this problem taken care of and I stupidly agreed to an offer he made me.

The deal was that he was giving me 120 days to pay what I could of my back taxes and then at the end of the time period the IRS would set up a payment plan for me to pay off the remainder. So I bought into it and worked my butt off and sent them $8,000. What did they do to reward my scrapping and suffering? They took the entire amount and applied it to tacked on penalties and late fees and interest. They did not reduce my back tax bill one penny! I was livid!

This is when I decided I would never get ahead trying to deal directly with the IRS and I got online. I found an IRS tax consulting company that understood how the IRS worked. They knew this tactic that I fell for and I gave me a strategy that would work.

This tax consultant took about 5 months to straighten out the problems I created over the past 5 years and they communicated directly with the IRS for me! I did not have to be in the negotiation at all except to get the feedback from my tax consultant.

If you are feeling pressured and you need IRS tax relief I strongly encourage you to get a tax consultant to negotiate a settlement for you. It will save you money, time and a ton of stress.

Do not try to settle your tax debt alone. Get IRS Tax Relief from tax professionals and save money, time and frustration.

Find a reputable online Tax Relief Company and let them settle your tax debt with the IRS for you.

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IRS Tax Relief - How to Get the IRS to Settle Without Having to Do it Directly

Government Pension Tax Relief

Government Pension Tax Relief
By Matt Murren

There is an easy way for you to save for your retirement and at the same time get pension tax relief from the federal government. The government wants you to build up your nest egg and helps you by granting you some tax relief on your contributions to a pension program. While your pension increases, your total tax bill is lessened by government tax relief programs.

The Internal Revenue Service (IRS) allows any amount saved for retirement to be protected, which in turn, relieves the tax burden. If you are currently retired, then you will have to pay taxes on anything you earn through your investments. However, if you are still working, you can contribute to your pension plan and defer the taxes. You will only pay taxes on the amount your withdraw later.

You will be required to pay tax on your pension if you receive it via early retirement. But, you do have the option of rolling all or part of it over to an Individual Retirement Account (IRA) or a qualified retirement plan and any tax will be deferred until later.

If you are 65 years old or older, you can get a tax credit of 15 percent of your income up to the federal income tax amount. This tax credit is yours if your adjusted gross income, your nontaxable pension benefits and Social Security benefits are within a certain pre-established limit.

You may be retired but still working either full- or part-time. If so, the federal government will give you a tax credit on the money you earn during this time. This federal program protects some of your earnings, especially if you are a low-income tax payer. This will help you live on the income you projected you would need during your retirement years.

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Government Pension Tax Relief