Tax Resolution Services
We will discuss tax resolution services. U.S. Internal Revenue Service (also known as IRS is accountable for collecting federal taxes and ensuring that tax laws comply. The IRS is accountable for tax collection, processing tax returns, and disbursing tax refunds. In 2018 the IRS received around 250 million tax returns and disbursed more than 400 billion dollars in tax refunds.
Many people think of the IRS during tax time and then wait for the tax rebate. Sometimes, the
IRS will be in view at other times throughout the year. However, there are exceptions. The IRS
may initiate an investigation if an individual or company believes they haven’t had enough income reported, haven’t been paid enough, or didn’t complete the required tax returns. In these situations, the individual or business may need tax resolution services to address the issue, pay back taxes, and get tax relief. We will discuss more details about tax resolution services in this post.
What is Tax Resolution?
Tax resolution is the process of working with IRS tax experts to solve your tax issues. You may have problems with taxes or a tax problem that the IRS cannot resolve. When your tax issue is complex or complex, the IRS may investigate you to make sure you report your income correctly and make the appropriate deductions. The IRS may suspect that you have under-reported income in specific circumstances and might be looking into the tax implications of your situation.
Another issue that comes with the IRS has to do with when you fail to make your taxes due each year. The IRS might increase the amount of tax due if you don’t pay your taxes at the right time. We will discuss more tax resolution services in this blog post
Here are a few examples of times when you might need to utilize the tax resolution service:
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 complete 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 conducting an audit doesn’t mean that you have done something wrong. You can relax by having an expert audit consultant create an argument for the audit.
Transcript Protest
The IRS is also prone to errors. Sometimes the IRS believes that you earned more money than what you earned or includes the earnings from an ex – or former business partner with your earnings. If this occurs, the IRS may be entitled to contest your claim and provide evidence to prove your point. Tax experts can help you draft a Transcript Protest, so you don’t have to pay any debt.
Debt
What happens if the IRS payment is just too large that you’re unable to pay it back? In this scenario, you are left with no option. You could choose to pay your IRS and keep the roof in place.
Since we are discussing tax resolution services. The IRS can relieve tax debtors who cannot or are unwilling to make payments. The IRS will not collect your tax debt if you are in a “currently not collectible” status. Services for tax settlement are offered to assist you in determining your eligibility and comprehending the possible drawbacks and benefits.
Tax Penalties
If businesses or taxpayers fail to pay their taxes in time, or if they fail to pay in full, the IRS could assess tax penalties and interest. The IRS may waive certain 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.
Non-Filed Returns
It is common to complete a tax return every year. However, this may not be feasible in all situations. An IRS representative may use that information to calculate the debt you must 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
Taxes on back taxes aren’t easy to pay all at once. You need to review your tax returns to determine if you’re liable to resolve tax issues. Collaboration with the IRS to create a tax plan could be a part of the tax settlement process. We will talk about the tax resolution process in this post.
The IRS Is Compromising
There are instances when the IRS will negotiate with taxpayers. The IRS”Offer in Compromise program will accept payment that is less than the amount you have to pay.
Negotiating with the IRS isn’t easy since they are not often willing to negotiate reductions in the number of payments. Consult a tax professional to determine if the IRS will be ready to negotiate or offer an alternative solution.
Payroll tax is a requirement for businesses that employ employees. The IRS may penalize businesses that do not pay their payroll tax. It is usually via The Trust Fund Receipt Penalty. Tax resolution experts can guide you through the penalty process of the IRS.
Wage Garnishment Help
The IRS is willing to go to the greatest measures to collect its money. One of them is to take your earnings. It could make your pay smaller or ineffective. Negotiating with the IRS about garnishing your earnings is an essential element of tax resolution. A tax professional is capable of helping you develop an income and payment plan to submit before the IRS. This proves that you can pay without the IRS getting the money.
The faster you can have your tax issues solved, the better. A prompt resolution to tax issues can alleviate stress and headaches. This will also mean you don’t have to pay additional taxes to the IRS.
What Can Tax Resolution Do for You?
You can directly contact the IRS to solve your tax-related issues. But, it’s better to seek help from tax experts.
Taxpayers, like you, are entitled to certain rights as a taxpayer. These rights are outlined in the IRS Taxpayer Bill of Rights. You have the right to work with a firm offering tax solutions that can assist in ensuring the rights of your interests and safeguarded. A tax resolution firm will be able to assist you:
Evaluate Your Position
If you are working with a tax professional the first thing to do is to schedule a consultation. At this time, you’ll be able to discuss your specific situation with a tax expert who will look over your documents and assess the situation.
Consultation may help you decide whether you’re eligible for tax resolution. The tax professional will be able to learn more about you and assist you in finding an answer.
A Defense
Suppose an accountant or tax agent believes your situation could be possible. 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 all your documentation when you’re being investigated. They will then create a defense for your case.
Your tax advisor can create a repayment plan that will provide the IRS with what you can be able to afford. 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 serve as an intermediary between yourself and the IRS. You do not have the burden of dealing with the IRS by yourself through a tax resolution company.
An IRS accountant and an agent enrolled possess several years of knowledge and in-depth knowledge about tax legislation. They are well-versed in your rights and what you can and can’t be held accountable to the IRS. You’ll be less overwhelmed and more likely to get a favorable result.
What are the benefits of tax relief?
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 the year 2011 to assist both individuals and businesses that had difficulty paying their tax obligations. The program brought about three modifications:
Liens Fresh Start:
The IRS increased the dollar threshold for the liens. It made it easier to release liens after taxes were paid.
Installment agreement:
Fresh Start enables taxpayers to cooperate with the IRS to create an installment agreement to repay the tax debt. Since they can apply online and do not have to fill out forms, it’s easy 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. The program now allows more applicants to apply. An Offer of Compromise can be an opportunity to settle your tax debt with the IRS in exchange for a reduction of the amount you are owed. This tax relief option is available once the other alternatives have failed. An Offer in Compromise option is offered to taxpayers who earn up to $100,000 or tax liabilities of up to $50,000.
You can apply for tax relief. Many prefer working with an expert tax advisor to ensure that they follow the procedure and increase their odds of obtaining the relief they want. If you seek assistance with your tax issue, only a few people have the qualifications to represent you or help you. These include:
- Agents enrolled
- Certified public accountants
- Lawyers
An IRS-authorized representative, also known as an Enrolled Agent, can represent taxpayers. To be an Enrolled Agent, one must pass a 3-part test or demonstrate a track 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 established a track record of our accomplishments through working with various clients.
Our CPAs are registered agents that can assist you in evaluating your situation and discuss your situation in conjunction with the IRS to decrease or eliminate your tax burden and help you file your tax return. Our headquarters are in Colorado. However, we also serve taxpayers across all 50 states.
The tax situation of each person and the outcomes will differ for each individual. Call BC Tax to learn more about your tax situation and the ways BC Tax might help.
