What is Tax Resolution and How Can You Avoid it?
If you are having trouble paying your back taxes, you might want to consider a tax resolution. These solutions involve evaluating your returns to determine how much you owe and working with the IRS to find a payment plan that will work for you. In some cases, the IRS will even compromise and accept less than what you owe. If this is the case, you may want to explore the Offer in Compromise program. These programs may be able to help you settle your debt faster. Seek legal advice from the best tax attorney there is in Oregon.
There are many benefits to hiring a tax resolution professional. First, they are licensed to represent you in tax court. Licensed tax resolution specialists can ask questions specific to your case, such as how much money you have to pay. From this information, the specialist can determine the price you should charge for the service. For a simple case, the cost of a tax resolution specialist might be as low as $1,000. On the other hand, more complex cases may require tens of thousands of dollars.
The process of hiring a tax resolution specialist is an excellent way to increase your revenue and get rid of troublesome clients. These tax specialists can analyze your problems and recommend the best solutions for your situation. A tax resolution specialist will help you negotiate an installment agreement or an offer in compromise with the IRS. Once you have agreed on a repayment plan, your tax resolution specialist will help you pay back your debt with the IRS. If you’re unable to pay your debts through the installment agreement or offer in compromise, your tax resolution specialist will negotiate the best possible deal for your situation.
Often, a tax resolution specialist will work with the IRS to get your account reinstated to good standing. This includes arguing your case against the IRS and restoring your tax account to a healthy status. A common tax resolution option is a currently non-collectible status, which is a legal designation that allows a person to work on their paperwork without fear of collection actions. If you’ve fallen behind on your taxes due to an emergency, a tax resolution specialist will be able to assist you.
Penalties can be partially waived or completely eliminated through a tax resolution service. The IRS and most states will forgive penalties if the reason for the penalty is reasonable. Your tax resolution representative will listen to your story and provide details that you may not have been aware of. For example, if this is your first time filing for payroll taxes, you can request a penalty abatement. If you’ve made payments in the past, you can usually get these charges eliminated by hiring a tax resolution service.
Tax problems are an enormous concern, and back taxes are no exception. For this reason, it’s important to hire a tax resolution expert – whether an Enrolled Agent or a tax attorney – as soon as possible. Even if you’re self-employed, the IRS still has the power to seize your assets if you don’t pay your back taxes. The IRS isn’t a friendly place to be, and they’re here to help you.
A tax resolution specialist’s job is to help you eliminate these liens and save your property. If you don’t pay your back taxes, the IRS can levy your assets, including bank accounts and retirement accounts. Using a tax resolution expert’s expertise can help you avoid having to sell your home or borrow from your 401(k).
In addition to tax resolution, you should prepare yourself for an audit by the IRS. These investigations can be highly complicated, and the IRS may suspect hidden or under-reported income. Furthermore, they may check the validity of deductions claimed, and may seek to find out what the taxpayer really claimed. A qualified tax resolution attorney can weed out bogus claims and defend their client’s interests. This can save them a lot of time and hassle.
Before you file for a tax resolution, it is essential to get all your past and current tax returns filed. If you have an installment agreement, make sure to meet your self-employment estimated payments or payroll deposits. Failure to pay taxes on time can end the installment agreement. Moreover, some taxpayers may have missed their tax returns due to unforeseen circumstances. For this reason, filing for a PPIA is an ideal solution. So, don’t hesitate to file your tax returns if you can.