Tax Resolution in New Jersey: Common IRS Tax Relief Programs

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Tax Resolution in New Jersey: Common IRS Tax Relief Programs

New Jersey Tax Resolution Attorney

Are you currently benefiting from an IRS tax relief program? If not, you’re missing out! Dealing with the IRS is scary for many, but some relief programs are out there to help shoulder the burden.

If you’re behind on payments and wondering what to do, connecting with an IRS resolution attorney in New Jersey can help you settle your tax debt and get back on track with the IRS.

Here is a breakdown of some of IRS’s most common programs. If you are facing an audit or have fallen behind on your taxes, these programs may be able to help.

Property Tax Relief Programs

The first step in obtaining property tax relief is to contact your municipality’s tax assessor. You may get a tax reduction if your property assessment is at a higher value than it is worth.

You will need to provide proof of the property’s actual value, such as a recent appraisal.

If you and the tax assessor cannot agree, you may appeal the decision to the county board of taxation. A successful appeal will lower your taxes and assist you with the IRS collections process.

If you still find it challenging to pay your property taxes, you may be eligible for a debt repayment plan. To establish an IRS installment agreement, contact your municipality’s tax collector. In most cases, you must make small payments every month to eliminate the debt.

Your municipality may place a lien on the property if you cannot pay your property taxes. A lien gives the municipality the right to sell your property and pay outstanding taxes. If you are facing a tax lien, you should immediately contact a New Jersey IRS resolution attorney.

Income Tax Relief Programs

You may qualify for an income tax relief program if you owe personal or business income taxes. The IRS offers several tax resolution programs in New Jersey that can reduce or eliminate your tax debt. Some of these are:

Financial Hardship

If you are facing financial hardship, you may qualify for a temporary postponement of your taxes. This can give you some much-needed time to get your finances in order.

Offer of Compromise

If you cannot pay your taxes, you can apply for an offer in compromise. This agreement with the IRS allows you to pay back your tax debt for an amount lower than you owe.

To qualify, you must prove that you cannot pay your taxes and that paying the reduced amount would not create a financial hardship.

Once you approve an offer in compromise, you must make a lump sum payment or payments over time. If you default on the agreement, you are responsible for the full amount of the tax debt plus interest and penalties.

Before entering into an offer in compromise, consult with a tax professional to ensure that it is the right decision for your unique circumstances.

Currently Not Collectible

The Currently Not Collectible (CNC) status is a way for taxpayers to postpone their tax payments for a while. To be granted CNC status, you must show the IRS that you cannot pay your taxes.

The IRS will review your financial situation and determine if you qualify for CNC status. If you do allow it, the IRS will not take any collection action against you for a while. It is important to note that the CNC status does not remove your tax liability.

You are still responsible for paying your taxes, and the IRS can take collection action against you at any time. If you struggle to pay your taxes, you should contact the IRS to discuss your options.

Back Taxes

You can set up a payment plan with the IRS if you owe back taxes. In most cases, you must pay a portion of your monthly taxes to eliminate the balance. There may be fees associated with setting up this payment plan.

The terms of your payment plan will depend on your circumstances. Make sure you can afford the monthly payments before entering into a payment plan. If you cannot make the payments, you become subject to penalties, interest, and collection actions.

IRS Audit

When facing an IRS audit, it is essential to remember that you have rights during the audit process. One of those rights is the right to appeal the IRS’s findings. If you disagree with the IRS’s determination of your tax liability, you can file an appeal.

You can sometimes negotiate a lower tax bill through the appeals process. An experienced New Jersey tax relief lawyer can help you navigate the appeals process. They will also conduct the IRS negotiations on your behalf. If you are facing an IRS audit, don’t go it alone. Contact a qualified tax lawyer as soon as possible.

Senior Citizens Tax Relief

A New Jersey resident aged 65 or older, disabled, or a surviving spouse/civil union partner, is eligible for an annual $250 property tax deduction. You must apply with your municipality to receive the deduction.

If approved, the deduction will go to your property taxes. This deduction helps to reduce the burden of property taxes, especially for those on a fixed income.

Sale of Principal Place of Residence

As a senior citizen or person with a disability, you can receive an exemption from property taxes on the sale of your house. To qualify, you must have owned and resided in the home for at least two years before the sale.

The home must also be your primary residence. This exemption can reduce the taxes you owe on the sale of your home.

Veteran Tax Relief

Veterans are eligible for special tax relief programs. The IRS offers several programs that can help veterans reduce their tax burden. For example, the Veterans’ Mortgage Life Insurance program provides insurance to veterans with outstanding mortgages.

The premiums for this insurance are deductible from your taxes. The Interest Rate Reduction Refinance Loan program helps veterans lower their monthly mortgage payments by refinancing their loans at a lower interest rate.

A veteran with a disability may also be eligible for the Disabled Veterans’ Tax Exemption. This exempts you from paying taxes on up to $50,000 of your income.

Innocent Spouse Tax Relief

Being married comes with a lot of financial responsibility – especially when it comes to taxes. If your spouse has unpaid taxes, you may be liable for those taxes. You may be eligible for Innocent Spouse Tax Relief if you prove that you did not know about your spouse’s tax liability.

You may also qualify if you prove that paying the taxes would create a financial hardship for you. Innocent Spouse Tax Relief can help you avoid paying taxes on your spouse’s unpaid tax liability. You may also be able to get a refund of any taxes that you have already paid on your spouse’s behalf.

Bankruptcy Tax Relief

You might be able to obtain bankruptcy relief if you can’t pay your taxes. When you declare bankruptcy, your tax obligation is forgiven. This means that you will not be responsible for paying your taxes.

However, there are some limitations to this form of tax relief. For example, if you have filed for bankruptcy in the past, you may not be eligible for this form of relief. Additionally, if your tax liability is due to fraud or evasion, it will not be discharged.

Consult a tax attorney if you are considering filing for bankruptcy. They will help you decide if this relief is suitable for you.

Statute of Limitations on Tax Relief

The IRS has a statute of limitations on how long it can take to collect taxes. This statute of limitations is usually ten years. However, there are some exceptions to this rule.


The statute of limitations for taxes may be suspended if you have filed for bankruptcy. This means the IRS cannot collect taxes from you while the bankruptcy is processed.

Identity Theft

The statute of limitations for IRS tax collections may be lifted if you have been a victim of identity theft. This means that the taxes levied on you will not be collected by the IRS until the identity theft case has been solved.

Natural Disaster

The statute of limitations may be suspended if you have been affected by a natural disaster, which means that the IRS will not be able to collect taxes from you until the natural disaster has passed.

Statute of Limitations Expiration

If the statute of limitations has expired, the IRS will not be able to collect taxes from you. However, you may still owe taxes. You should contact the IRS to arrange a payment plan if you do owe taxes.

Contact an IRS Resolution Attorney, call us at (856) 343-4068

If you are a resident of New Jersey and are looking for ways to reduce your tax burden, several programs can help. These programs can relieve paying taxes, help you lower your monthly payments, or give you a refund for taxes you have already paid.

The Sadek Bankruptcy Law Offices in New Jersey have qualified tax relief lawyers on hand to provide IRS appeal representation. We offer assistance with reducing taxes, making payments, getting refunds, and recovering money lost to identity theft or natural disasters.

Get in touch with a qualified IRS resolution attorney for a consultation today.

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