Tax relief is any deduction from taxes allowed to taxpayers by federal or state tax authorities for certain expense categories. An example is allowing the deduction of interest paid on educational loans from the income tax payable. Tax relief also takes the form of full or partial tax exemptions for low- and moderate-income families. In some cases, tax relief includes releasing citizens from paying taxes immediately, particularly during cases of natural disasters and similar contingencies. An example is tax relief granted to families following the devastation caused by hurricanes in the south during 2005.

Tax relief helps everyone, particularly the low-income families. It is normally provided as deductions from any of the various taxes like income tax, state tax, property tax, etc. In 1992, a tax-relief program introduced by the Internal Revenue Service was specifically targeted at helping individuals and corporations settle back taxes. This helped persons who were in financial hardship to pay back at least a part of the taxes that they owed. This process, which allows taxpayers settle the back taxes that they owe for less than the full amount, is known as an offer in compromise.

Normally, tax relief works through a process where tax authorities review the ability of a taxpayer to pay taxes based on information regarding the person's income and assets. A tax relief is granted if it's found that the recovery of a certain tax is unreasonable on the grounds that asset values have significantly decreased. However, tax authorities grant a tax relief only if the taxpayer's request for relief is based on a valid reason as defined under law. Tax relief is also granted under special circumstances. In the case of taxes on inheritance and gifts, a relief can be granted if it's ascertained that the value of the assets received has significantly reduced.

Tax issues can really cause a lot of mental and financial distress to the people affected. Persistent tax problems are even viewed as a kind of harassment and can cause much anxiety. Many people procrastinate when facing this situation and try to represent themselves without taking appropriate legal help. Tax lawyers are specialized legal professionals that specifically deal with issues relating to tax and the evasion of it. These lawyers typically specialize specific areas of tax such as business tax, income tax, international tax, property tax, tax debt and tax fraud.

Tax attorneys provide a range of services to their clients such as preparation and filing of income tax returns, negotiation of offer in compromise cases, penalty abatement petitions, full audit representations, business strategy sessions, settlement of taxes for the elderly, facilitating affordable installment agreements and filing bankruptcy with the IRS.

Tax lawyers can be hired from various law firms operating in all cities. Law firms have specialized attorneys on their roll for different type of cases. Whenever a new case comes to them for representation, they perform a preliminary analysis and assign the case to a team of attorneys specializing in that area. Tax attorneys typically possess relevant experience and specific information regarding tax cases. They are equipped to represent and secure the rights of their clients.

Tax lawyers charge a specific amount of fee to clients for their legal services. These charges include all the services from the start to the finish of the case. Clients can expect professional and courteous services from most law firms that provide tax attorneys to represent them. Though large law firms charge fees that might not be affordable to all people, it's always safer to retain them than risk losing the case and end up paying even more than that. It's advised to check the authenticity and competency level of tax lawyers through references in order to ensure genuine service. One of the ways of doing that is by checking their membership with the bar association.

Tax filing is a stressful and confusing procedure for most people. It becomes a daunting task to successfully and accurately file taxes with the IRS when a large number of exemptions and deductions have to be taken into considerations. There are a lot of questions raised that can cause doubt in the minds of many people when it comes to calculation of income tax. Sometimes, calculating federal and state taxes can prove to be tough. Other issues like residing in one state and working in another can cause confusion related to the place of filing the taxes. Uncertainty regarding the filing of taxes when a family shifts from one locality to another may also arise.

In order to minimize the confusion and tension of successfully filing taxes with the IRS an individual can either approach a tax professional for help. They complete all the formalities ranging from calculation of taxes to filling forms and submission to proper authorities. They professionally handle tax filing and the client pays them a fixed commission after the job. It is advisable that people prepare and file taxes themselves, as it is less expensive. Tax preparation software is easily available online and quicken the process of filing taxes.

Different income levels require different forms to be filed. The form 1040 is the basic form that has to be filed by everyone. Other forms to be filed with the IRS are W-2 and 1099.

The IRS has its own website which provides detailed information on preparation and filing of taxes. It is advisable not to procrastinate the preparation of taxes so that they can be filed before the deadline. Proper organization of tax records helps to file taxes easily as all the information required is easily available. The IRS also provides forms, templates and publications that can be availed of at local IRS offices.

It is recommended that tax returns must be filed whether or not an individual has a tax liability and fails to pay. By filing on time, later filing penalties can be avoided.

There are many other websites that offer tax filing information other than the IRS website. The information provided is generally free and helps to mobilize the tax filing process effectively.

Some individuals and organizations do not follow the standard procedure of paying their share of taxes to the government. By not doing so, they are committing a crime under the income tax laws of the US. The act of flaunting the rules and laws institutionalized for the proper functioning of the government is considered a serious offence. These types of crimes are termed as white-collar crimes in legal circles, as civilized citizens with no history of crimes commit these offences.

Tax fraud is a term used to refer to offenses such as tax evasion, non-filing of tax returns, forgery, non-declaration of assets and income, misrepresentation of conditions for the purpose of tax exemption and other such actions related to the payment of taxes. Tax fraud lawyers are specialized attorneys that deal with issues of tax fraud and represent clients who are accused of tax fraud.

Unlike other kinds of tax lawyers, tax fraud lawyers do not advice on tax planning or filing of income tax returns. Clients specifically employ them when they anticipate government interrogation regarding their taxes or after they have been charged for tax fraud. Though the issue is morally wrong, tax fraud lawyers work on ways to negotiate with tax authorities and help their clients legally evade taxes to a limited extent and mitigate their situation with regard to the charge of tax fraud.

Many tax frauds are caused due to limited or erroneous knowledge of the tax laws. Some tax consultants misguide their clients with contradictory tax plans, which ultimately results in unplanned tax evasion. If an attorney proves that his client is the innocent victim of wrong tax advice by some tax consultants, it?s likely that the charges against them might get dropped or a lenient sentence might be passed. It is very important to select tax consultants carefully as only those with proper industry certifications and detailed exposure to such cases can help people solve what can be tricky situations with the IRS.

The most common method adopted by tax fraud lawyers to get relief for their clients is by convincing the tax authorities that prosecuting the defaulter will do more harm than good and would not fetch them the recoverable tax dues. When this line of reasoning is well presented, the authorities might settle for the middle path by accepting payments in installments or waiving off a part of the tax dues instead of prosecuting them.

Property tax is a tax on real estate, boats, aircrafts or other real property that is paid by the owner of such a property. The tax is determined on the basis of the value of the property. Property tax relief is a rebate or refund that the government provides to property owners who pay taxes on their property. This is a way to lighten the burden of tax on citizens.

Many states have passed legislation and introduced various measures to provide some form of property tax relief or the other to its residents. For example, California provides property tax relief to taxpayers who had their properties destroyed or damaged. This law is applicable to owners of real estate, business equipment, mobile homes, boats, and aircrafts. Most items that are assessed property tax are eligible for the tax relief. In New Jersey, around 1.3 million residents benefited from increased property tax-relief checks that were mailed out in the summer of 2004, as part of the Fair and Immediate Relief plan. Checks of up to $1,200 were mailed to homeowners who were aged 65 or older and had a gross income of $100,000 or less. Tenants with gross income of $100,000 also stood to benefit from the tax rebate checks. The Homeowner Tax Relief Act of 2004, signed into law by Governor Rendell of Pennsylvania, proposed to provide property tax relief to Pennsylvania residents through income generated from gaming.

Typically, property tax relief is provided through various categories. Commonly used terms for categories are Homestead Exemption, Senior Citizen Real Property Tax Relief, First-Time Homebuyer Individual Income Tax Credit, Individual Income Property Tax Credit, and Low-Income, Long-Term Homeowners Tax Credit. The property tax relief helps all the residents by reducing the burden of the tax. It does so particularly in the case of senior citizens and low- and modest-income families.