Byron Pedersen of Instant Tax Solutions Reviews IRS Requirements for Common Tax Debt Resolution Options

Founder Byron Pedersen and the Instant Tax Solutions Reviews Team discuss the most common tactics that taxpayers may use when trying to find relief from back taxes.

Information Nation: Good morning, Mr. Pedersen. We want to thank you and the entire Instant Tax Solutions Reviews Team for speaking with us today.

Instant Tax Solutions Reviews Team: It’s no problem at all, we are always glad to offer consumers information.

Information Nation: Let’s get started, shall we? Can you tell us, what are some of the most common tax debt resolution tactics?

Instant Tax Solutions Reviews Team: There are three that are fairly common to reduce the amount of money owed to the IRS: Offer in Compromise, Penalty Abatement, and Interest Abatement. Instant Tax Solutions reviews each client situation and offers them an honest opinion about which, if any, method is applicable to their case.

Information Nation: Let’s start with an Offer in Compromise. Can you explain it to us?

Instant Tax Solutions Reviews Team: An OIC is an offer to the IRS that is lower than the amount owed. It must represent the largest amount of money that the agency could reasonably expect to recover from the taxpayer.

Information Nation: Do all taxpayers qualify?

Instant Tax Solutions Reviews Team: No, most definitely do not. The IRS has very strict requirements that must be met before they will even consider an offer.

Information Nation: Are there any required conditions associated with an OIC?

Instant Tax Solutions Reviews Team: Taxpayers are advised that the IRS will have them sign an agreement to possibly relinquish all of their current assets and possibly even their future income.

Information Nation: Does this remove the tax debt completely from the taxpayer’s record?

Instant Tax Solutions Reviews Team: Not immediately. All of the terms and conditions must be met to the IRS’s satisfaction before they will effectively “wipe the slate clean.”

Information Nation: You mentioned Penalty Abatement previously. Can you tell us about that?

Instant Tax Solutions Reviews Team: This is where the IRS removes or diminishes penalties and fees that have been incurred by the taxpayer for failure to pay on time or other infractions.

Information Nation: In other words, if the taxpayer has been careless?

Instant Tax Solutions Reviews Team: A taxpayer must prove that he or she has tried to comply with the IRS. There are certain situations, including casualty, death, or a serious medical illness that may qualify a taxpayer for Penalty Abatement.

Information Nation: Those sound like dire circumstances. Are those the only reasons for the taxpayer to obtain a Penalty Abatement?

Instant Tax Solutions Reviews Team: Less extreme reasons may include an unintentional inability to gather records, bad advice from a tax professional or legitimate ignorance of business or personal tax law.

Information Nation: If the taxpayer applies for Penalty Abatement, do they qualify automatically?

Instant Tax Solutions Reviews Team: No. Once again, the IRS has very strict policies and requirements that must be satisfied before the taxpayer qualifies.

Information Nation: And what about Interest Abatement?

Instant Tax Solutions Reviews Team: Interest Abatement is even harder to qualify for than an Offer in Compromise or Penalties Abatement.

Information Nation: Why is that?

Instant Tax Solutions Reviews Team: Because in order for a taxpayer to qualify for Interest Abatement, the IRS must have made an error.

Information Nation: This is all very interesting. As a tax debt resolution agency, are these methods that Instant Tax Solutions helps clients with?

Instant Tax Solutions Reviews Team: Yes, these and more. Instant Tax Solutions reviews IRS policies and procedures regularly in order to maintain up-to-date information on what situations qualify for tax relief.

Information Nation: Thank you all very much for speaking with us today, this has been very informative.

Instant Tax Solutions Reviews Team: We look forward to speaking with you again on additional tax topics.

Instant Tax Solutions reviews IRS information for taxpayer information only. The information contain herein is not intended to replace the advice of a tax professional and is not a guarantee of future outcome.

Instant Tax Solutions, LLC | 1700 E. Schneidmiller Ave. Post Falls, ID 83854 | Phone: 1-888-387-4071