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Taxpayers may be overwhelmed when they must pay back taxes to the Internal Revenue Service and are unable to write a check to clear up the balance. Having a tax bill is scary and the IRS has a reputation of being an evil, monolithic empire manned by heartless, merciless staff who exist to make taxpayer's lives miserable. Fortunately the reality is much kinder. Despite the fact that Congress has been criticized for inaction on quite a few concerns over the past few years it did American taxpayers some favors by instructing the IRS to setup a number of tax relief packages to aid taxpayers with authentic problems settling their tax debts. Unfortunately a lot of of these relief programs have received very little press coverage and the majority of people who owe back taxes are uninformed of the options attainable to them. The primary mistake made by people who have a tax bill is disregarding the IRS and hoping that they will vanish. Believe me, this never succeeds. The IRS has a specific requirement from Congress; collect all the taxes owed by citizens and businesses. Just because an individual won't reply to a demand for info or a tax bill doesn't mean that the IRS will give up trying to collect. Just by recognizing that you received the notice from the IRS should help any future contacts from being automatically confrontational. Getting a letter from the IRS doesn't necessarily mean that what the IRS is alleging is right. New reports by independent organizations reveal that the IRS has incorrect information or has made an incorrect determination in nearly 20% of the requests for taxes due sent out. Read the notice carefully and understand what the IRS request is founded on. You normally have up to 60 days to answer to 1st or 2nd requests so be detailed in your response. If you have documents to dispute an IRS contention, show these documents and your response in a very clear, even style. Avoid being defensive or vulgar, accusing the IRS of incompetence is not going to make things any less difficult for you. Should you owe taxes, there are plans available to you to aid you pay them in monthly installments. Don't presume that a payment plan is automatically put in place, you will need to work with the IRS to establish what you can afford and just how long the repayment schedule ought to be. Don't forget that interest will also be accumulating while you are negotiating with the IRS and during your repayment period. It is critical that you keep up the scheduled payments and keep all payments up-to-date, being in default on your tax repayment plan takes away all flexibility in dealing with the IRS. Another chance for tax relief is tax reduction. In cases of personal disaster or emergency the IRS may possibly reduce the amount of the principal you owe. This process requires a great deal of proof of disaster and exactly how the event or events caused personal and financial hardship. This may require you to use a tax professional who can help you to file the correct paperwork needed to have the IRS consider your request to lower your tax bill. However, if your tax balance is substantial the expense of a tax lawyer may very well be far less than the total amount of tax relief that you end up receiving. Although there are no promises of relief when you are dealing with the IRS, some simple guidelines do apply that can help your cause. Answer back quickly, be polite and honest, have proper records and make certain that you honor every one of the commitments that you make. Tax relief is possible but the method calls for perseverance and honesty.