Sunday, October 24, 2010

Tax Debt Relief Acts of 2001 and 2007

Every year, taxpayers are required to file their tax returns with the IRS. However, the economy has suffered greatly in the recent years and so many taxpayers were not able to pay for their obligations on time. If you have no idea about tax debt relief, you should read this article.

Tax relief happens when the government exempts any form of tax. Perhaps you've heard about the Mortgage Debt Relief Act of 2007 and the Economic Growth and Tax Relief Reconciliation Act of 2001. Until today, people are still debating as to the specifications and terms of tax relief but this is primarily due to the complex tax laws. With the right info in your hands, you can easily handle this situation.

According to the Act passed in 2007, you can be exempted from paying for the tax which resulted from a debt amount that was canceled or forgiven. If you qualified for the loan modification, you can qualify for the debt relief. This can be applied from 2007 until 2012.

You can only qualify for this debt relief if you filed for bankruptcy, non-recourse loan, certain farm debt, and if you qualified for a loan modification provided that your home's value is lower than the amount owed. The maximum amount is $2,000,000 and for married individuals filing separately, the maximum amount is $1,000,000. Just in case your balance is greater than the amount, you can check out Form 982 for the instructions.

When you qualify for this act, you will need to fill out Form 982 and submit it together with your tax return. The Act of 2001 made considerable changes to the retirement plans. This included increased deductibility limits and contributions for the IRA, employer-sponsored plan, and the portability rules. The EGTRRA has also increased the amount for the generation-skipping transfer-tax exemption and estate-tax exclusion.

You need to be aware of these tax solutions so that you will not find it hard to pay for your tax debts. There is always an appropriate tax debt relief option that will work for you. It would also help if you consult a lawyer who specializes in tax.




***Update***
I have done a bit of research for you. Tax Settlement Experts can help you get the relief you deserve. Find out if you qualify for a tax debt settlement today.

Click here to fill out a short form to save your finances and get out of debt as early as this week!

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