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Taxpayers are usually stressed out when they need to pay back taxes to the Internal Revenue Service and are unable to write a check to clear up the balance. Having to deal with a tax bill can be scary and the IRS has a reputation of being an evil, monolithic business staffed by heartless, cruel employees who live to make taxpayer's lives difficult. Fortunately the reality is much gentler. Despite the fact that Congress has been belittled for inaction on many issues over the past few years it did taxpayers some favors by telling the IRS to put in place several tax relief plans to help citizens with genuine problems settling their tax bills. However the majority of of these relief programs have received very little press exposure and the vast majority of people who owe back taxes are not aware of the alternatives available to them. The number one blunder made by individuals who have a tax bill is dismissing the IRS and wishing that they will disappear. Trust us, this never helps. The IRS has a specific mandate from Congress; collect all the taxes owed by citizens and corporations. Just because an individual does not respond to a demand for information and facts or a tax bill does not mean that the IRS will give up trying to collect. Just by recognizing that you received the letter from the IRS should help any future communications from being routinely confrontational. Receiving a notice from the IRS will not necessarily mean that what the IRS is alleging is accurate. Recent studies by independent organizations suggest that the IRS has wrong data or has generated an incorrect determination in close to 20% of the demands for taxes due mailed. Examine the notice carefully and figure out what the IRS demand is based upon. You normally have up to 60 days to respond to 1st or 2nd requests for information so be precise in your answer. If you have documents to question an IRS contention, offer these documents and your answer in a straightforward, even form. Avoid being defensive or impolite, accusing the IRS of incompetence will not make things any simpler for you. If you owe taxes, there are options available to you to aid you pay them in installments. Don't presume that a payment plan is automatically created, you will need to work with the IRS to establish what you are able to afford and just how long the payment schedule should be. Don't forget that interest will also be accumulating as you are dealing with the IRS and during your repayment period. It is critical that you maintain the scheduled payments and keep all payments current, being in default on your tax settlement plan eliminates all versatility in dealing with the IRS. An alternative chance for tax relief is tax reduction. In cases of personal disaster or emergency the IRS might actually lower the amount of the principal owed. This procedure demands a good deal of proof of catastrophe and just how the event or events caused personal and financial damage. This can require you to hire a tax professional who is able to assist you to file the right paperwork required to have the IRS give consideration to your application to lower your tax bill. However, if your tax balance is substantial the expense of a tax lawyer may be far less than the amount of tax relief that you end up obtaining. Although there are no promises of relief when you are dealing with the IRS, some simple guidelines do apply that should help your case. Respond quickly, be professional and polite and truthful, have correct paperwork and be certain that you honor all the promises that you make. Tax relief is attainable but the course of action calls for perseverance and openness.