IRS Tax Relief
There are many forms of IRS Tax Relief available from the Internal Revenue Service. No matter what form of hardship you're enduring right now, the government has tried to put some forms of relief assistance in place to try to help.
Disaster Relief
Many people affected by severe storms, floods or other disasters may qualify for IRS disaster relief. The National Disaster Relief Act is able to help provide a broad spectrum of tax benefits for any person affected by a recognized disaster.
The IRS Tax Relief benefits for taxpaying people affected by disaster include:
- Allowing affected taxpayers to claim the casualty loss deduction regardless of income level
- Removing the need for the net casualty loss deduction to be limited.
- Waiving some mortgage revenue bond requirements and then allowing the bond proceeds to be used to assist with rebuilding property if required.
In the event of a short-sale, where the property has been sold for less money than was outstanding on the mortgage, the lender may sometimes forgive that debt. While this means your debt is gone, the IRS can view this forgiven debt as being taxable income. You may request IRS Tax Relief for forgiven debt so that the cancelled debt amount is excluded from your taxable income.
Another form of IRS Tax Relief is when a debt is forgiven through bankruptcy. In this event, the IRS will not include the forgiven debt as taxable income. The same is true if you are insolvent at the time the debt in cancelled.
Spouse Tax Relief
In some circumstances, it is possible to seek tax relief if you have separated from your former spouse. This is known as Relief by Separation of Liability and you must apply for relief within 2 years to qualify.
Innocent spouse relief is different in that some couples file taxes separately, or they may claim deductions from the other spouse. Sometimes when this happens, one of the partners forgets to file a tax return, which leaves the partner who did file owing more taxes than necessary. You can request IRS Tax Relief as the innocent spouse if this has happened to you.
It is advisable that if you require IRS Tax Relief you should speak to a tax professional about your specific circumstances. This can help you to determine whether you do qualify for any form of IRS Tax Relief designed to help you when you need it most.
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