How Can Tax Resolution Help You?
Most people only think about the IRS when they file their taxes and when they wait for a tax refund. However, the IRS can reach out during other times of the year for a variety of reasons – if they believe you haven’t reported accurate income, have underpaid, or if you’ve failed to file a return. If this happens, you may need tax resolution services to help to solve problems, pay back taxes or apply for tax relief.
It’s possible to work directly with the IRS on your own to resolve your tax issues, but sometimes it’s in your best interest to partner with an experienced tax professional who can help solve your problem.
As a taxpayer, you have certain rights, which are outlined in the IRS’ Taxpayer Bill of Rights. You have the right to:
- Be informed
- Receive quality service
- Pay no more than you owe
- Challenge the IRS and be heard
- Finality
- Privacy
- Appeal the decision of the IRS
- Retain representation
- Confidentiality
- A tax system that is fair and just
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 particular issue, and a tax professional will have the opportunity to review your paperwork and assess your situation.
The consultation can help you determine if you’d benefit from the services offered by a tax resolution firm. It gives your tax consultation a more in-depth look into your specific situation and begins the process of finding a solution to your problem.
Put together a defense
If your tax consultant believes they can help you resolve your problem, the next step is to create a plan for working with the IRS as well as come to an agreement that satisfies all parties. If you’re being audited, your consultant will go through your documents to get a thorough understanding of your situation before preparing a defense for you.
In the case of negotiating with the IRS or avoiding wage garnishment, you can work with your tax consultant on a repayment plan that demonstrates good faith to the IRS that you can pay – or can’t pay, if applicable. Your plan and defense can keep you from being overwhelmed by a substantial tax bill.
Act as the mediator
Under the Taxpayer Bill of Rights, you have the right to representation. This means, that your tax consultant can be the mediator between you and the IRS. Working with a tax resolution firm means you never have to worry about dealing with the IRS on your own.
Not only do tax consultants have years of experience working with the IRS, they also have a much fuller understanding of complicated tax laws. They know your rights and what you can and can’t be held responsible for by the IRS. Having a professional represent you reduces your stress and increases the likelihood of an outcome in your favor.
If you decide to get help for your tax situation, be aware that only particular individuals are qualified to help you or represent you. Those individuals include:
- Enrolled agents
- Certified public accountants (CPAs)
- Lawyers
Tax Relief Options
While dealing with issues with the IRS can be stressful, surprisingly, the IRS is more sympathetic and understanding than most people think. The agency has several programs designed to provide tax relief to qualified individuals and businesses.
In 2011, the IRS created a program called “Fresh Start” to help individuals and businesses that are struggling to pay their taxes. The initiative made changes in three areas:
Liens
The IRS raised the dollar threshold for liens. It also made it easier to withdraw liens after taxes are paid, allowing them to be withdrawn once a taxpayer creates a direct deposit payment agreement.
Installment agreements
The initiative makes it easier to work with the IRS on the creation of an installment agreement for the payment of back taxes. Fresh Start also gave taxpayers an additional year for repayment of the tax debts, from five years to six.
Offer in Compromise
Fresh Start expanded the Offer in Compromise program, making more people eligible for it. An Offer in Compromise lets you settle with the IRS and pay less than the amount you owe. It’s a tax relief option that’s available when all other sources have been tried and exhausted. Under Fresh Start, taxpayers with incomes up to $100,000 and tax liability up to $50,000 might be eligible for an Offer in Compromise.
Everyone has a unique tax situation and your results will depend on your personal circumstances. Contact us to learn more about your situation and potential tax relief options.