IRS Audits
Tax resolution services can help you navigate the process if selected for an IRS audit. The IRS requires documentation, and only a licensed tax professional can represent you in front of the IRS to resolve any discrepancies or issues.
Back Taxes
If you have unpaid taxes from previous years, tax resolution services can assist in developing a plan to pay off your tax debt. We can negotiate with the IRS to arrange a payment plan. We can help you explore options such as an Offer in Compromise (OIC), which allows you to settle your tax debt for less than the total amount owed.
Tax Liens and Levies
If the IRS places a tax lien on your property or initiates a levy to seize your assets for unpaid taxes. Tax resolution services can help you negotiate with the IRS to release the lien or levy. They can assist in developing a strategy to resolve the underlying tax issue and prevent further collection actions.
Innocent Spouse Relief
If you filed a joint tax return with your spouse or former spouse and are facing tax liabilities due to their erroneous reporting, tax resolution services can help you pursue Innocent Spouse Relief. We can guide you through the process.
Payroll Tax Issues
If you own a business and have payroll tax problems, such as unpaid payroll taxes or misclassification of employees, tax resolution services can help you address these issues and work towards a resolution with the IRS.
Penalties and Interest
If you have accumulated penalties and interest on your tax debt, tax resolution services can assist in negotiating penalty abatements. It can also reduce interest charges, potentially reducing the overall amount you owe.
It's important to note that tax resolution services vary in their expertise and qualifications. It's advisable to research and choose a reputable service provider with licensed tax professionals, such as enrolled agents, certified public accountants (CPAs), or tax attorneys, experienced in dealing with IRS matters.
Audit Representation
If you receive an audit notice from the IRS, don’t panic. Although the audit process can seem intimidating, it’s not something you need to go through on your own. The IRS audits taxpayers for various reasons, and just because the IRS decides to audit you doesn’t mean you have done anything wrong.
Hiring a Professional:
A tax consultant to help assemble an audit defense for you can help you rest assured that the audit results will be as accurate and fair as possible.
Transcript Protection
The IRS makes mistakes, too. Sometimes, it believes you made more money than you did, or it includes the income from an ex-spouse or a former business partner. When that happens, you have the right to disagree with the IRS and to present evidence to help you make your case. Tax professionals can help you create a transcript protest so you don’t have to pay the money you don’t owe.
Non-Collectible Debt
What happens when the amount you owe to the IRS is so much that you can’t repay it. Also, you cannot continue to afford reasonable cost-of-living expenses? In that situation, you don’t have to choose between a roof over your head or paying the IRS. The IRS does offer a form of relief when you can’t pay your tax debt. During what’s known as a “Currently Not Collectible” status, the IRS won’t try to collect the debt you owe. Using tax resolution services can help you see if you qualify and can help you understand the benefits or drawbacks of using it.
Tax Penalties
The IRS charges interest and tax penalties when individuals or businesses pay their taxes late or don’t pay. Fortunately, there are some instances when the IRS will waive the liability. Tax resolution firms determine eligibility requirements for penalty abatement for taxpayers. If eligible, a penalty abatement claim must be filed.
Unfiled Returns
The IRS requires a taxpayer to file a tax return every year. Sometimes, life and other circumstances can prevent you from filing. When that happens, the IRS might estimate how much you owe based on the documents it receives. The IRS collects all sources of income, including Forms W-2 and 1099's. A tax resolution firm can help you prepare returns for past years. It can also help you file present-day returns and work with you to put together a tax plan.
Paying Back Taxes
If you owe back taxes, you might not be able to pay the total amount due in one lump sum. Tax resolution involves evaluating tax returns to ensure you are responsible for the back taxes. By, working with the IRS to create a plan that makes paying the tax you owe more manageable.
Compromising With the IRS
There are cases when the IRS is open to compromising with taxpayers. What if I can't afford to pay my taxes? The IRS Offer in Compromise program accepts payment that is less than you owe. Compromising with the IRS can be tricky.
Working with a tax professional can help you see if compromising with the IRS will help you resolve your tax issue. Or maybe another option, such as a payment plan, might be more appropriate.
Payroll Tax Recovery
Businesses with employees need to pay payroll tax on their employees' wages. When a company doesn't pay payroll taxes, the IRS can penalize it, usually through the Trust Fund Recovery Penalty. A tax resolution professional can help you navigate the process when the IRS issues a penalty. This includes working with you to complete Form 4180 and helping you prepare for the Form 4180 interviews.
Tax Liens
A lien is a security instrument used to collect on the debt. It gets filed within the county where the taxpayer(s) reside. It gives the taxing agency the legal right to pursue collections for the taxes owed. If you don't pay your property taxes, federal or state taxes, the taxing agency can put a lien on your home. Liens allow taxing authorities to garnish your wages and bank levy your accounts. If the IRS garnishes your wages, it will take a percentage of up to twenty-five percent of your paycheck. Part of tax resolution involves negotiating with the IRS before it begins garnishing your income. A tax consultant can help create a payment plan to present to the IRS.
By demonstrating that you can pay what you owe without them having to step in and take the money directly. The sooner your tax issue gets resolved, the better. Getting professional help for tax resolution can mean less headache and stress. You don’t pay more than you need to pay the IRS. How Does Tax Resolution Help You? Although you can work through your tax issues with the IRS independently, working with tax professionals is often in your best interest. They can help you work with the IRS and resolve your tax problems. As a taxpayer, you have certain rights outlined in the IRS’s Taxpayer Bill of Rights. You have the right to Be informed, Receive quality service, and pay no more than you owe. Challenge the IRS and be heard. Working with a company that provides tax resolution services helps you ensure your rights are protected.
A tax resolution firm can help Evaluate Your Situation
The first step when working with a tax resolution firm is to schedule a consultation. During the consultation, you’ll have the chance to explain your issues, and a tax professional will have the opportunity to understand your situation. The consultation determines if you’d benefit from the services offered by a tax resolution firm. It also gives the tax consultant a chance to get to know your situation more in-depth and to start the process of coming up with a solution to your problem.
An enrolled agent will assemble a tax plan to present to you. This step is to create a plan to help you work with the IRS or state taxing authorities. If you’re getting audited, an enrolled agent will diagnose your situation before preparing a defense. When negotiating with the IRS, your tax consultant can enter you into a temporary repayment plan to prevent a garnishment from taking place. At this point, documentation will be provided to the IRS on your behalf to defend your case and prove your case.
Act As the Go-Between
You have the right to be represented
Under the Taxpayer Bill of Rights. Your tax consultant can be the go-between or mediator between you and the IRS or state. Working with a tax resolution firm means you never have to worry about dealing with the IRS or state on your own. Enrolled agents and tax consultants have years of experience working with the IRS or state and a full understanding of tax law. They know your rights and what you can and can’t be held responsible for by the IRS and state. Having a professional represent you reduces your stress and increases the likelihood of an outcome in your favor.
Tax resolution services can be valuable in various ways when dealing with tax issues. Here are some ways tax resolution can help you:
Expert Evaluation
A tax resolution firm can evaluate your specific tax situation and review your documentation to gain a thorough understanding of your case. They will assess your options and determine the best action to resolve your tax problem.
Defense Preparation
If you are facing an IRS audit, a tax consultant or enrolled agent can help you gather the necessary documents and prepare a strong defense on your behalf. They will ensure that your rights are protected and work towards achieving a fair and accurate outcome.
Negotiation and Repayment Plans
In cases where you owe back taxes or cannot afford to pay your tax debt in full, a tax resolution professional can negotiate with the IRS to establish a feasible repayment plan. They will analyze your financial situation and develop a plan that fits your circumstances, demonstrating that you can meet your tax obligations to the IRS.
Representation and Mediation
Under the Taxpayer Bill of Rights, you have the right to representation. A tax resolution firm can act as your intermediary, communicating and negotiating with the IRS. Their experience and knowledge of tax laws will help protect your rights and increase the likelihood of a favorable outcome.
Protection from Liens and Garnishments
If you risk having a tax lien placed on your property or facing wage garnishment, tax resolution services can help prevent or mitigate these actions. They can guide you through removing or discharging liens and work towards finding a resolution that satisfies both you and the IRS.
Compliance and Future Tax Planning
A tax consulting firm can assist you in preparing unfiled tax returns from previous years, ensuring that you are following tax regulations. They can also help you develop a tax plan, offering guidance on how to manage your taxes more effectively and avoid potential issues.
Compliance and Future Tax Planning
A tax consulting firm can assist you in preparing unfiled tax returns from previous years, ensuring that you are following tax regulations. They can also help you develop a tax plan, offering guidance on how to manage your taxes more effectively and avoid potential issues.
Overall, tax resolution services provide expertise, representation, and guidance throughout the process of resolving your tax problems. By working with professionals who understand the intricacies of tax laws and IRS procedures, you can achieve a fair resolution and alleviate the stress of dealing with tax issues.
Tax relief refers to programs and initiatives designed to provide assistance and comfort to individuals and businesses who are struggling to meet their tax obligations. These programs are offered by the Internal Revenue Service (IRS), the government agency responsible for collecting federal taxes in the United States. Here’s how tax relief works:
Fresh Start Program
The Fresh Start program is an IRS initiative introduced in 2011 to help taxpayers facing financial difficulties. It includes three main components:
- Liens: Under the Fresh Start program, the IRS increased the dollar threshold for placing a lien on a taxpayer’s property. It also made it easier for taxpayers to withdraw liens after they had paid their taxes. Also, liens can be removed if a taxpayer establishes a direct deposit payment agreement.
- Installment Agreements: The Fresh Start program simplified the process of setting up installment agreements with the IRS. Taxpayers who owe less than $50,000 can apply online and avoid specific paperwork. The repayment term was also extended from five years to six, making it more manageable for taxpayers.
- Offer in Compromise (OIC): The Fresh Start program expanded the eligibility criteria for the Offer in Compromise program. An OIC allows taxpayers to settle their tax debt for less than the total amount owed. Under the program, individuals with incomes up to $100,000 and tax liabilities up to $50,000 might be eligible for an OIC.
Working with a Tax Professional: While taxpayers can apply for tax relief independently, many choose to work with tax professionals to ensure they navigate the process correctly and improve their chances of obtaining relief. Qualified individuals who can assist with tax relief include:
- Enrolled Agents: Enrolled agents are individuals the IRS authorizes to represent taxpayers. They must pass a comprehensive three-part examination or have relevant experience working with the IRS. Enrolled agents are well-versed in tax laws and can provide guidance and representation during the tax relief process.
- Certified Public Accountants (CPAs): CPAs are licensed professionals with expertise in accounting and taxation. They can offer tax planning and preparation services and assist with tax relief strategies.
- Lawyers: Attorneys specializing in tax law can provide legal advice and representation for taxpayers seeking tax relief. They are knowledgeable about tax regulations and can help navigate complex legal issues.
Working with a tax professional can provide reassurance that your tax relief efforts are handled appropriately and increase the likelihood of achieving a favorable outcome.
It’s important to note that tax relief programs and eligibility criteria vary, so it’s advisable to consult the IRS website or seek professional advice to stay updated on the latest options available.