Tax Relief for Unpaid and Back Taxes

• If you owe taxes for the current year or for prior years and you cannot pay the full amount all at once, you can seek several forms of tax relief. You can arrange with the IRS for an installment agreement or you could negotiate an offer in compromise to pay a total lower amount. You can find information about both those options at the IRS website. One option you won't find there is to seek "currently not collectible" status with the IRS. This is the term the IRS uses for debts it does not think it will ever collect given the taxpayer's financial situation. To apply, you must file a Form 433-A with the IRS and clearly establish that you cannot pay the taxes you owe.
  
  

Tax Relief for Innocent Spouses

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  If you owe taxes because you filed a joint return but you did not know your spouse under-reported his income, you may be able to avoid paying the taxes and penalties for the under-reported income. Innocent Spouse Tax Relief allows to avoid the back taxes and penalties if you prove you did not know and had no reason to know about the under-reporting. Separation of Liability Relief relieves your if you can establish you didn't live with your spouse for the prior 12 months and you are legally separate or no longer married. Relief from Liability Arising From Community Property Law may apply if you did not file a joint return and you did not know and had no reason to know about your community spouse's separate income. Finally, you may get Equitable Relief if you can establish paying the taxes would cause a serious economic hardship.
  
  

Disaster Tax Relief

• Congress passed the National Disaster Relief Act of 2008 to provide a way for taxpayers to deduct expenses and losses related to federally-declared disasters. If you live or work in an area where the federal government has declared a federal disaster, you can claim certain deductions on your taxes, including a personal casualty loss of $100 or $500 (depending on the year). The law provides other relief, including allowing certain small businesses to elect a net operating loss (NOL) carry-back.
  
  

Tax Filing Extension

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  The typical tax deadline is April 15. If you won't be ready to file by then, you can seek relief by applying to extend your filing date to October 15. The extension is only for filing. You must pay any taxes owed by April 15 or be subject to penalties and interest.
  
  

Tax Deductions for Current Taxes

• The IRS provides many other deductions, depending on your circumstances, that can relieve you of at least some of your tax burden. There are deductions for tuition, business losses, charitable deductions and many other situations. To be entirely sure you claim all the relief to which you are entitled, you should consult a tax attorney or a professional tax preparer.