2023 Optima Reviews: Tax Relief (2023)

FAQs

2023 Optima Reviews: Tax Relief? ›

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Optima Tax Relief features to know

After that, you'll pay about $295 for the company to diagnose the size and nature of your specific problem. What comes after that is less certain in terms of price — fees range from $995 to $5,000 on average and vary case by case.

Working with Optima Tax Relief will not hurt your credit. Late payment of taxes and setting up tax payment plans do not impact your credit. Even tax liens are no longer included in credit reports, so they can't hurt your credit score.

Do tax relief companies really work? Yes, legitimate tax professionals can help you lower your tax debt or get on an affordable payment plan. However, there are companies that will just take your money without providing much value.

How much will the IRS settle for? The IRS will typically only settle for what it deems you can feasibly pay. To determine this, it will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.

The Fresh Start program is open to any taxpayer who owes taxes and is struggling to pay them. There are no income requirements. The first step in applying for the IRS Fresh Start program is to contact your tax attorneys or accountants and see if you qualify.

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship.

Guarantee Disclaimer

Optima Tax Relief, LLC (“OTR”) will refund monies paid under the OTR Client Agreement within the first 15 calendar days without any penalty or obligation.

Refundable vs.

Some taxpayers who aren't required to file may still want to do so to claim refundable tax credits. Not all tax credits are refundable, however. For nonrefundable tax credits, once a taxpayer's liability is zero, the taxpayer won't get any leftover amount back as a refund.

It feels great to have your debt settled, canceled or forgiven, but you should be aware that there are tax implications of debt settlement. Settled debt is considered income by the IRS, so you'll have to pay income taxes on the forgiven amount. Creditors will send you a 1099-C form if the amount is greater than $600.

What is the tax forgiveness program 2023? ›

What is the IRS Forgiveness Program? 2023 Updates. Certain taxpayers in the United States who cannot afford to pay their tax liability due to financial hardship may qualify for tax debt relief under the IRS Forgiveness Program.

One-time forgiveness, otherwise known as penalty abatement, is an IRS program that waives any penalties facing taxpayers who have made an error in filing an income tax return or paying on time. This program isn't for you if you're notoriously late on filing taxes or have multiple unresolved penalties.

To be eligible for the Fresh Start Program, you must meet one of the following criteria: You're self-employed and had a drop in income of at least 25% You're single and have an income of less than $100,000. You're married and have an income of less than $200,000.

What is the IRS Fresh Start Program? The IRS Fresh Start Program is designed to help taxpayers who have accumulated a substantial federal tax debt that exceeds their capacity to pay. By applying and meeting eligibility criteria, taxpayers can substantially decrease their outstanding federal tax liabilities.

Yes, after 10 years, the IRS forgives tax debt.

After this time period, the tax debt is considered "uncollectible". However, it is important to note that there are certain circumstances, such as bankruptcy or certain collection activities, which may extend the statute of limitations.

The general rule regarding taxability of amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61. This section states all income is taxable from whatever source derived, unless exempted by another section of the code.

What Are the Cons of the IRS Payment Plan? The cons of the IRS payment plan and installment agreement tend to be the penalties and interest tacked onto the debt. The penalties accumulate every month that you still owe a debt, which means you'll pay more than you initially owed.

Taxpayers who owe but cannot pay in full by April 18 don't have to wait for a tax bill to set up a payment plan. They can apply for a payment plan at IRS.gov/paymentplan. These plans can be either short- or long-term.

To be eligible for the forgiveness program, taxpayers must demonstrate that they can't fully repay their taxes due to financial hardship. Hardship could include job loss, illness, or disability.

The best way to pay off tax debt to the IRS is to make payments in full. While there are other payment strategies, paying in full ensures quick resolution. Paying with installment plans, offer in compromise, and personal loans are other ways to pay off tax debt without full remittance.

Do you need a lawyer to negotiate with IRS? ›

Tax attorney Beverly Winstead says there are many aspects of negotiating with the IRS you can do yourself, but there are some situations where a professional can help.

The IRS offers a debt forgiveness program for taxpayers who meet certain qualifications. To be eligible, you must claim extreme financial hardship and have filed all previous tax returns. The program is available to certain people only, so be sure to check if you qualify.

Fees for IRS installment plans

If you can pay off your balance within 180 days, it won't cost you anything to set up an installment plan. If you cannot pay off your balance within 180 days, setting up a direct debit payment plan online will cost $31, or $107 if set up by phone, mail, or in-person using Form 9465.

The IRS offers a debt forgiveness program for taxpayers who meet certain qualifications. To be eligible, you must claim extreme financial hardship and have filed all previous tax returns. The program is available to certain people only, so be sure to check if you qualify.

In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs.

US Tax Shield doesn't publish pricing on its website, as there is no price chart that applies to every case. However, fees typically start around $1,000 and average about $4,000. You need a minimum of $10,000 in back taxes to work with US Tax Shield.