Tax relief or ( tax releif as some folks would rather spell it )
Tax Debt relief can be a complicated thing to get involved with.

Get Help To Deal With The IRS:
It can become panic time if you get behind on your taxes.  If you owe back taxes to the IRS (or State) you can permanently resolve your tax debt and get some tax relief in many cases by using a good tax attorney. The IRS has set up rules and programs specifically for the purpose of tax releif.. Often the tax burden can be greatly reduced. These tax relief plans may be because the IRS doesn't want to see you homeless living in the street.

The IRS offers tax relief in these cases
Relief for Victims of Storms and Flooding in Hawaii
Relief for Victims of Wildfires in California see News Release
Relief for Victims of Hurricane Ike in Texas and Louisiana
Relief for Hurricane Gustav Victims in Louisiana and Mississippi
The IRS has a good page on casualty loss www.irs.gov/taxtopics/tc515.html

Medical:
If your doctor tells you to take aspirin etc. ask to get a prescription for the items(s). You don't have to pay sales taxes on it in this way. Your insurance may cover it as a bonus. For folks who have chronic illness or long term users of diabetic supplies and alchohol wipes and other supplies this can add up.

Tax reduction on Investments:

Tax rules allow you to deduct a portion of your stock losses, called capital losses, which can reduce your tax bill. The rules concerning capital losses are strict and specific. Capital losses can be used to offset ordinary income only if they exceed your capital gains. There are limits on the deduction.

If you buy a home between April 9 of 2008 and June 30 of 2009, you can get a $7,500 credit. Not bad! Mortgage debt relief has been in the tax code since 2007. Banks are starting to make deals so as not to have to foreclose on homes and a homeowner whose mortgage has been reduced doesn't have to pay taxes on the difference.

Taxpayers who are looking to refinance or sell a home and there is a federal tax lien filed, have options. Taxpayers or their representatives, such as their bank, can ask that the IRS make a tax lien secondary to the lien by the bank that is refinancing or restructuring a loan. Taxpayers can request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.

As always check with the IRS for the lates changes in the laws www.irs.gov/