| Your Options Tax Relief Alternatives
Abatement, or adjustment, of a tax liability means to reduce or change a tax, penalty, or interest. Most frequently, abatement refers to eliminating an assessed tax liability and adjustment references reducing or altering an assessed tax liability. There are many basis for abating taxes and assessed tax penalties, including “Innocent Spouse” determination. Typically, adjustment/abatement is a means for reducing or deferring a liability which is used in conjunction with another tax relief method to resolve the taxes owed. There are three types of Innocent Spouse relief: traditional Innocent Spouse relief, separation of liability, and equitable relief. Traditional Innocent Spouse relief is granted to join-filers (typically married couples) when one spouse was unaware of the erroneous item which created a tax liability; Separation of liability is primarily for join-filers who are currently separated, and equitable relief is for a spouse who should not be held liable and who fails to meet the two preceding determinations. In all of the Innocent Spouse adjustments, the IRS’ goal is to provide relief to the spouse who was unaware or not at fault for the creation of a tax liability, hence the IRS rules that it would be inequitable to hold the innocent spouse liable for any tax deficiencies. |
Our Recent Tax Debt Settlements
| Original Amount | Settled Amount | Date |
| $48,967.00 | $4,973.00 | |
| $126,842.00 | $24,963.00 | |
| $17,843.00 | $6,924.00 | |
| $12,738.00 | $4,821.00 | |
| $83,056.00 | $1,734.00 | |
| $71,941.00 | $9,421.00 |
Tax Debt Market Statistics
Last year the IRS cancelled 3.89 million in tax debt, saving taxpayers $3.62 billion.
When tax debt is properly challenged, the IRS has canceled 60 cents of every dollar assessed in employment tax penalties.
The amount of delinquent IRS tax debt rose by 20% last year alone.
IRS tax debt enforcement activity rose by over 26% last year.
In 2007 the IRS settled tax debt for just 14.8 cents on the dollar when a proper request was made for tax debt forgiveness.
By asserting the right to a correspondence audit, the average tax audit bill was reduced by as much as 58%.
The amount of income tax debt reported owed but not collected by the IRS totaled more than $200 billion at last count - that number doubles to over $400 billion if you include the estimated taxes owed on unreported/unfiled returns.
Over 2.6 million taxpayers are on an installment plan, paying over $4.5 billion to the IRS, and successfully avoiding wage and bank levies and property seizures.
15% of all taxpayers owe back taxes.