Best Tax Relief in Indianapolis, IN

Your tax relief options vary based on how much you owe, how long you've been in negative standing with the IRS and your current ability to repay the amount. Understanding all the potential tax relief options helps you choose the tax relief company that works best for you.

Offer in compromise
An offer in compromise lets you settle your tax debt for less than you owe. Qualifying for this type of tax relief depends on:

• Your ability to pay
• Your current income
• Your current expenses
• Your asset equity

If approved, you have two options to pay your back taxes: submit an initial payment of 20% of the total amount with the remaining balance due in five installments or submit your initial application and continue to pay the balance in monthly installments. The IRS does not consider you for an offer in compromise if you are in an open bankruptcy proceeding or if you have not filed all required tax returns and have not made any required estimated payments.

Penalty abatement
Some Indianapolis taxpayers find themselves in a one-time situation where they failed to file or pay their taxes. A penalty abatement waives the fines associated with these issues. This solution can typically be used only once in a taxpayer's financial history. A penalty abatement is designed to reward taxpayers for having a clean record and offer a level of flexibility for a one-time mistake. To qualify, Indianapolis residents must have:

• Filed all required returns
• Paid or arranged to pay all taxes due
• Not been previously penalized

Collection appeal
The IRS has a variety of ways to collect tax debt, but tax relief companies can dispute or appeal some rulings. Some of the collection actions subject to appeal include:

• A Notice of Federal Tax Lien (NFTL)
• A levy against your bank accounts or other property
• A levy on your wages (wage garnishment)

Innocent spouse relief
If your spouse has improperly reported items or omitted details on your tax return without your knowledge, you can file for innocent spouse relief. Innocent spouse relief frees you from responsibility for paying the tax, interest and penalties associated with their omissions.

Administrative appeals
If you do not agree with an IRS assessment, you have the option to file an administrative appeal. These appeals require a hearing, some of which can be conducted by mail, telephone or in-person. Assessments of $25,000 or more require a formal written protest. After you submit your request for an administrative review, you typically have 60 days to prepare for a hearing. While the process can seem overwhelming without assistance from a tax professional, Indianapolis residents who appeal their tax returns can see their total dollar amount owed reduced by up to 40%.