In order to quality for consideration of an offer in compromise of settlement, individuals must be able to meet one of three conditions in order to avoid tax penalties. Those conditions are doubt as to liability, doubt as to collectibility, and effective tax administration. In addition to those conditions, the changes that the IRS made to the Offer in Compromise program in 2006, which included that an up front 20 percent , non refundable payment, plus $150, be submitted with the Offer of Compromise in the case of a cash offer. Doing so can provide people with some back taxes help and eliminate the need for some tax penalties. IRS garnishments can be one of the most harsh tax penalties that someone might face while they have had trouble gaining tax debt relief. Although the IRS will not start garnishing wages without first providing notice and the opportunity to make payment arrangements, many will make sure to pay their debts in order to stop wage garnishment. When they are served to an employer, garnishment tax penalties are taken out as part of the payroll process. While that might simplify the process, it still costs businesses money, which can be difficult to earn back. Some individuals will find tax relief help by filing an Offer based on a theory as to doubt liability, or DATL. If that is the case, they will need to prove that they have not otherwise had an opportunity to dispute a tax liability. If done properly, people who do so might find some relief from the tax penalties that they have to deal with. However, the best way to overcome tax penalties is to make sure that debts are cleared in a prompt manner and avoid them altogether. Unfortunately, doing so is not always easy because the rules and regulations associated with paying taxes and tax penalties can be quite complex. Because of that, individuals with little education or experience with tax penalties might have to suffer them simply because of a paperwork mistake or accidentally reporting the wrong information. In order to avoid that, individuals would be wise to seek out some type of advice. While some will do so by contacting and working with a professional, others can simply research tax penalties on the internet to find the information they need. Either way can be highly beneficial to anyone looking to clear their tax debts.
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