We will discuss tax resolution services. U.S. Internal Revenue Service (IRS) is responsible for collecting federal taxes and ensuring compliance with tax laws. The IRS is also responsible for collecting tax funds, processing tax returns, and disbursing tax refunds. In 2018 the IRS received around 250 million tax documents and issued more than $400,000 in refunds to taxpayers.
Many people only think about the IRS during tax season and then wait for the tax rebate. Sometimes, the IRS is visible at other times throughout the year. However, there are exceptions. The IRS may decide to take action if a person or company believes that they haven’t declared enough income, haven’t been paid enough, or didn’t submit the tax returns required by law. In these situations, individuals or companies could need tax resolution services to address the issue or to pay back taxes and get relief from tax. We’ll discuss more tax resolutions in this blog post.
What is Tax Resolution?
Tax resolution is the process of working with IRS tax experts to solve your tax issues. There could be tax problems or tax problems that the IRS cannot resolve. If your situation with taxes is complex, the IRS might investigate you to ensure you report your income correctly and claim the correct deductions. The IRS may suspect you have under-reported income in specific circumstances and might be looking into how tax-related issues affect you.
Another issue in dealing with the IRS is when you fail to make your tax filings annually. The IRS might increase the amount of tax due if you don’t complete your tax returns at the right time.
Here are some instances of times when you might need to make use of tax resolution services
Audit Representation
Don’t be concerned if you receive an IRS notification that your tax returns will be scrutinized. While it might seem overwhelming, it’s not necessary to traverse the whole audit on your own.
The IRS is an auditing agency for taxpayers, which can be done for various reasons. Just being aware that the IRS is auditing you doesn’t necessarily mean that you’ve done anything wrong. It’s possible to relax with a professional audit expert to prepare a defense for the audit.
– Transcript Protest
The IRS can also make mistakes. Sometimes it’s because the IRS considers that you earned more money than you earned or includes the earnings from an ex – or former business partner. In this case, it is possible that the IRS can contest your position and provide evidence to prove your point. Tax experts can help you draft the Transcript Protest so that you won’t be liable for any tax.
Debt
What happens if you discover that the IRS payment is just too large that you cannot pay it back? In this scenario, there is no option. You have the option of paying your IRS and keeping the roof on.
The IRS may offer some relief to tax debtors who cannot or are unwilling to make payments. The IRS will not collect your tax debt in the “currently not collectible” status. The tax resolution service is provided to help you determine your eligibility and understand the potential disadvantages of this status and its benefits.
Tax Penalties
If businesses or taxpayers don’t pay their taxes on time or they do not pay their taxes in full, the IRS may assess tax penalties and interest. The IRS can waive penalties in certain situations. Your tax resolution service to determine if the waiver is available to you and assist you in determining whether you qualify. We will discuss more about tax resolution services
Non-Filed Returns
It is expected to complete a tax return every year. However, this may not be feasible in all instances. An IRS representative may use that information to determine the debt you have to pay. A tax consulting firm can assist you in preparing your tax return from years past. They can also assist you in preparing your tax returns for the current year and help you with tax-planning strategies.
Getting Back Taxes
It isn’t easy to pay in one lump sum. You need to review your tax returns to determine if you’re responsible for solving tax issues. The collaboration with the IRS to develop a strategy is a component of the tax settlement process. We will talk about the tax resolution process in this article.
The IRS Is Compromising
There are times when the IRS is willing to negotiate with taxpayers. The IRS”Offer in Compromise program allows for payments that are lower than what you are owed.
Negotiating with the IRS can be difficult because they aren’t often willing to negotiate reductions in the number of payments. Consult a tax professional to aid you in determining whether the IRS will be willing to accept a compromise or to offer a more favorable solution.
Payroll tax is a requirement for companies that employ employees. The IRS may penalize businesses that do not pay their payroll tax. The most common method is via The Trust Fund Receipt Penalty. Tax resolution professionals can assist you in understanding the IRS’s penalty procedure.
Wage Garnishment Help
Since we are discussing tax resolution services. The IRS is willing to go to great measures to collect its money. One of them could be to garnish earnings. It could make your pay smaller or not even exist. Negotiations with the IRS regarding garnishing your income are crucial to a tax settlement. Tax consultants are competent to assist you in creating the payment schedule that you can present to the IRS. This proves that you can pay without the IRS accepting the cash.
The earlier you can get your tax issue addressed, the better. Quick tax resolution can alleviate stress and headaches. Also, you will not have to pay additional taxes to the IRS.
What Can Tax Resolution Do for You?
You can directly contact the IRS to resolve tax issues. However, it’s better to seek help from tax experts.
You are entitled to certain rights as a taxpayer. These rights are stated in the IRS Taxpayer Bill of Rights. You are entitled to: Work with a firm that provides tax resolution solutions that can help guarantee that your rights are safeguarded. Tax resolution companies can assist you in:
Evaluate Your Position
If you’re dealing with a tax company, the first thing you should do is arrange a meeting. In this consultation, you’ll have the opportunity to discuss your specific issue with a tax professional who will review your tax documents and analyze the situation.
The consultation will help determine whether you’re a good candidate to pursue a tax-related resolution. It allows the tax professional to meet and guide you to the best solution. We will discuss more about tax resolution services
A Defense
If an accountant or tax agent feels that your situation is likely, the following step would be creating an action plan to cooperate with the IRS to reach a mutually acceptable agreement. Enrolled agents will go through the entirety of your documentation if you are examined. They will then create an argument for you.
A tax professional can help you prepare an installment plan to provide the IRS with what you can afford to pay. Your defense and the plan you have in place can safeguard you from being overwhelmed by tax debts.
– The Go-between
The Taxpayer Bill of Rights allows you to be represented. Your tax professional can mediate or intermediary between yourself and the IRS. You do not have the burden of dealing with the IRS by yourself through a tax resolution company.
The IRS accountant and an agent enrolled possess many years of knowledge and in-depth knowledge of the tax laws. They know your rights and the things you can and are not held responsible for by the IRS. You’ll be less overwhelmed and have a higher chance of obtaining a favorable result.
What is the tax relief system?
The IRS is a more caring and understanding institution than you may think. The IRS offers a range of tax relief programs available to people and businesses who qualify.
Fresh Start is one example of such a scheme. The IRS launched the program in 2011 to help people and businesses with difficulty paying their tax obligations. This initiative led to three modifications:
Liens Fresh Start:
The IRS increased the threshold to $2,000 for the issuance of liens. It was made easier to release liens after taxes were paid.
Installment agreement:
Fresh Start enables taxpayers to cooperate with the IRS to negotiate an installment agreement to pay taxes. Since they can apply online and do not have to fill out forms, it’s simpler for those with less than $50,000 of owed tax debt. Fresh Start also extended the time frame for repayment to six years from five years.
Compromise Program:
Fresh Start widened the offer for the program that compromises. It allows more people to apply. An Offer of Compromise can be an option to negotiate with the IRS in exchange for a reduction of the amount you are owed. This tax relief option is available when you have exhausted all options. An Offer in Compromise option is offered to taxpayers who earn up to $100,000 or tax liabilities of up to $50,000.
You may apply on your own to get tax relief. Many prefer working with an expert tax advisor to ensure they follow the procedure and increase their chances of receiving the required relief. If you seek assistance with your tax issue, it is important to know that only a few have the qualifications to assist or represent you. They include:
Agents who are enrolled
- Certified public accountants
- Lawyers
An IRS-authorized representative (also known as an Enrolled Agent, can represent taxpayers. To be an Enrolled Agent, you must pass a three-part test or have a record of working for the IRS.
BC Tax Can Help You Resolve Your Tax Issues
BC Tax is committed to helping taxpayers cut their tax burden. BC Tax has built an excellent track record by working with numerous clients.
Our CPAs are registered agents who will help you analyze your situation and discuss your situation in conjunction with the IRS to decrease or eliminate tax liabilities and assist you in filing the tax return. Our office is located in Colorado. We serve taxpayers across all 50 states.
Every person’s tax situation and results will vary. Call BC Tax to learn more about your tax situation and what BC Tax might help.
