In this presentation i tried to brief, what is tax relief, types of tax reliefs, Innocent Spouse Relief Tax Program, Relief By Separation Of Liability and more about other popular Tax Program,

1. What is Tax Relief and Why?
Who Qualifies?
What are the Types of Tax
Relief?

2. What is Tax Relief?
This is any program or incentive by a tax agency to reduce a
tax payers’ owed taxes
These may include deduction based on number of
dependants and incentives such as tax credits for buying
and installing energy-efficient appliances
Tax relief services include:
Partial payment arrangements
Innocent spouse protection
and installments arrangements among others…

3. Types of Tax Relief
There are many different types of tax relief. These include:
Innocent Spouse Relief Tax Program
Equitable Relief
Relief By Separation Of Liability
Financial Hardship Tax Program
Penalty Abatement Tax Program
Offer In Compromise Tax Program

4. Innocent Spouse Relief Tax Program
If your spouse commits tax fraud without your
knowledge, you may file innocent tax relief. To
qualify you need to:
 Have filed a joint return with incorrect entries
 Establish that you were unaware of the erroneous
entries at the time of signing the return
 Establish it would be unfair to hold you accountable
 Be innocent of fraudulent schemes

5. Equitable Relief
Equitable relief is granted where there is an understatement of
tax or an underpayment of tax.
To qualify for equitable relief you must meet these conditions:
 Not eligible for innocent spouse relief, relief from community property
liabilities, or relief by separation of liability.
 You did not participate in any fraudulent schemes
 You and your (ex) spouse did not transfer property to avoid paying g tax
 You neither filed nor failed to file with intent to defraud
 You didn’t pay the tax
 You cannot be held liable for understatement or underpayment of tax

6. Relief By Separation Of Liability
Relief by separation of liability is for unpaid tax liabilities
which resulted from tax understatements.
The understatement of tax is allocated separately between you
and your (ex) spouse
To qualify, you have to have filed a joint tax return and must
meet either of the following conditions:
 Are legally separated or no longer married to the spouse you
jointly filed with
 You were not members of the same household with the
spouse you filed with in the 12-month period prior to filing
form 8857

7. Financial Hardship Tax Program
This type of relief results in the IRS declaring your owed tax
uncollectable.
To qualify, you need to:
 show proof that your current financial situation is such that
you are unable to currently pay the IRS
 You should submit all IRS forms required for this relief
 You should also submit detailed descriptions relating to
your current financial situation
Note: The IRS retains the right to collect when your situation
improves

8. Penalty Abatement Tax Program
This type of relief reduces or totally eliminates penalties and
interests applied on back taxes owed
To qualify you have to:
Have the ability to pay your balance in full upon the approval of your penalty
abatement request
You must prove to be not liable for penalties and interests charged
Some of the situations where this type of relief applies include:
Divorce
Death of a family member
Illness
Long term unemployment
Natural disaster

9. Offer In Compromise Tax Program
This type of relief reduces a taxpayer’s owed tax obligation
To qualify for the offer in compromise IRS program, you
should:
 Show that the amount stated as tax owed is
incorrect
 Or the owed back taxes can never be realistically
collected
 Or collecting the back taxes will result in great
undue financial hardship to the taxpayer

10. Summary
There are many different types of tax relief
programs offered by the IRS
If you are unsure whether you qualify, it may be
wise to consult a tax professional.
This applies whether you feel there is a charge of
fraud or not against you or your spouse.
Fees charged by tax professionals are usually
much lower than the relief you stand to gain from
the IRS

11. Special Thanks
We are grateful to the Optima Tax Relief Team for their
invaluable assistance.
For more information on taxation issues such as filing returns,
applying for tax relief, and filing back taxes you can contact
them at:
Optima Tax Email
Optima Tax Facebook Page
Optima Tax on Twitter