In other cases, a tax relief program may be designed to reward certain behavior or to stimulate a specific segment of the society.  Many countries offer tax credits for education or job training, and tax exempt savings plans have been developed to assist parents in saving for the college education of their children.  Other tax credits have been created to encourage home ownership, expand the availability of low income rental property, or increase business development in economically disadvantaged areas.  In some regions, employers are offered additional tax credits for employing disabled individuals who might have difficulty finding regular work.

When a natural disaster strikes in a particular area, the government may respond with a tax relief program specifically targeted for individuals and businesses that have been harmed.  Such a program may involve temporary tax relief for the victims as well as extra credits or deductions for those who offer assistance.  For example, the normal penalties for early withdrawal from retirement accounts may be waived, or extra exemptions may be allowed for the affected parties.  Those offering assistance may be given extra charitable deductions or exemptions as a way to encourage the private sector to take on more of the responsibility of restoring the damaged area.

Still, another method of reducing your taxes is to qualify for an OIC which stands for Offer in Compromise. These are hard to get and you will more than likely need to help of a tax professional in order to qualify for one. Basically, this amounts to having your taxes greatly reduced because you will not be able to pay the tax. The IRS figures some money is better than none. To qualify you must meet one or more of the stringent requirements. For example, you must prove that even by selling all of your assets, you will not have nearly enough money to pay the bill. Or another way to qualify is by having some sort of catastrophic expense such as medical costs. Be aware, that the IRS does not give this designation lightly so you will have to have all of the documentation necessary to prove your case.

Another segment of the population often targeted by a tax relief program is the elderly.  This may take the form of an additional standard deduction or personal exemption, or the ability to shelter a portion of a pension plan from taxation.  Some local jurisdictions may offer reduced property taxes for elderly who have lived in an area for a minimum number of years.  Military personnel may also be beneficiaries of programs which exempt income from taxation while serving in a combat zone, or allow certain housing allowances or education benefits to be excluded from taxable income.  In some areas, lower income individuals may actually receive refundable tax credits in excess of their withholding.

Well, the quicker that you make a move once you find out that you owe money, the better. Then there will be fewer penalties to contest, and the IRS will know that you are serious about your case. Just imagine what is going on in their minds when they see a case where an individual has tried to avoid these payments rather than coming forward. They might pass them over rather quickly.

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