Sarah, a small business owner, was struggling to keep her company profitable. Despite huge cost-cutting, she couldn’t stay afloat and missed the due date for filing taxes. Fearing that she might incur heavy penalties, she consulted a tax expert. He advised her to check her eligibility for the IRS Debt Forgiveness Program.
Just like Sarah, people in various industries are also trying to manage their taxes. In fact, according to the latest IRS report, 18.6 million taxpayers owed over $316 billion, an average debt of around $17,000.
If you have also received a notice from the federal government, don’t get anxious. You can avail of las vegas tax debt relief. It is designed to help people reduce their total debt if they qualify for it.
This article provides all the information about the IRS Debt Forgiveness and the digital solutions that allow better accessibility to taxpayers with advanced software. Also, learn about BL_Faceless by reading this article.
The IRS Debt Forgiveness: A Discussion of the Issues
You might have missed the due date to pay your taxes because of other priorities. If you fail to make the payments, then a monthly late payment penalty will be levied. To avoid interest charges, you have three options – a non-collectible status, installment agreements or IRS payment plan, or an offer in compromise.
An easier way is to first check your eligibility for the IRS Debt Forgiveness Program, as stated below:
A total tax debt balance of $50,000 or less
A total income below $100,000 for individuals (or $200,000 for married couples)
Claim extreme financial hardship and have filed all previous tax returns
No open bankruptcy issues or criminal investigations
Inaccurate tax debt can also qualify for a tax refund
It reduces the taxable amount for the eligible debtor, as well as consolidates the debt to be paid into one monthly payment. This also improves the credit score, which helps in getting a loan in the future.
The entire process of filing taxes becomes easier with the help of a digital solution for taxpayers, which we will explore further in this article.
FAST FACT You can file back taxes for any past year, but the IRS usually considers you in good standing if you have filed the last six years of tax returns.
How Digital Solutions Simplify the Process
Gone are the days of filing taxes manually. It was so difficult to download the form, calculate every income source, and upload it online. If you wish there was an easier solution, it is to go digital.
Now, there are advanced tax preparation tools and e-filing options that automate the complete tax filing process. It is cost-effective, faster, and more efficient than before. Here are its benefits:
The best digital solutions offer excellent customer support through live chats, chatbots, email, and phone. This instantly resolves queries, building user’s confidence and trust in the authorities.
The user-friendly interface on the modern apps allows smooth navigation from one web page to another. If this is your first time filing taxes, you will be easily directed online to follow instructions and submit your report.
Once you have made an account with a username and password, a unique PIN is assigned for extra security. Simply submit your IDs online, and the software automatically produces all the income reports. The advanced software also calculates the total taxes accurately with no chance of mistakes.
According to the latest report, the IRS has upgraded its digital tools. It allows faster processing and real-time tracking of late payments. People cannot miss their deadlines and file their taxes in a more transparent way.
Some applications also offer free consultation from a tax specialist. This benefits those with multiple accounts, both personal and corporate ones. They offer an in-depth analysis of all the minor and major taxes that need to be filed.
It is relevant to check your financial status because not all apps can handle complex taxation and are built only for handling single debt consolidations. The applications should also be compatible with all devices to make it convenient to file taxes from anywhere.
STATISTICS The chart shows the variety of sources from where the federal government collects taxes.
IRS Debt Management in the Future
Filing taxes shouldn’t be complex. The government is also taking steps to reduce heavy debt for failed payments. The IRS Debt Forgiveness program can run smoothly with the help of advanced digital tools.
According to the latest news, the IRS has updated the eligibility for an OIC or Offer in Compromise to include more taxpayers. It is also working on updating its security with strong encryption and stricter policies.
The modern software will provide a better real-time tracking system, especially for filing back taxes conveniently. In the future, there will be more assistance provided to users with quick resolution of issues to reduce the taxpayer’s dependence on third-party software.
Conclusion
Many people owe their tax filing benefits to e-filing tools either used by them or by a tax expert on their behalf. It is complex to check all the taxable income and, therefore, automated tools are a great choice.
They are cost-effective, faster, and effective methods to pay all the taxes on time. In case you forgot to submit the federal and state taxes before the deadline, check your qualification on the IRS Debt Forgiveness program.
Digital solutions save a lot of time and are user-friendly, making the complete process of filing taxes easier. Accepting new-age technology is the future of timely submission of IRS dues for a stress-free life.
