August 13, 2022

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Tax Resolution Services

7 min read
tax resolution services

We’ll be discussing tax resolution services. The U.S. Internal Revenue Service, also known as the IRS, is responsible for collecting federal taxes and ensuring compliance with tax laws. The IRS is accountable 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 wait to receive their tax returns. Sometimes, the IRS is present at other times of the year. However, exceptions do exist. The IRS could decide to take action if a person or company believes that they haven’t declared enough income, are underpaid, or didn’t file the tax returns required. In these situations, the individual or business may need tax resolution services to address the issue or pay back taxes and get tax relief. We will discuss this in more detail tax resolution 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 an issue with your tax return or a tax issue that the IRS can’t resolve. When your tax issue is complex or complex, the IRS may examine you to ensure that you report your income correctly and make the appropriate deductions. The IRS could suspect that you’ve not reported income correctly in certain situations and could be looking into how tax-related issues affect you.

Another issue that comes with the IRS has to do with when you do not make your taxes due each year. The IRS might be able to charge you more tax owed if you don’t pay your taxes at the right time.

Here are some instances of situations where you may want 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. Even though it can seem intimidating, you don’t need to traverse the whole audit alone.

The IRS examines taxpayers for different reasons. However, being aware that the IRS is examining you doesn’t necessarily mean that you’ve done anything wrong. You can relax by having an audit expert from a reputable firm prepare an argument 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. If this occurs, the IRS is entitled to challenge your position and provide proof to support your claim. Tax professionals can assist you in drafting the Transcript Protest, so you don’t have to pay any debt.

Debt

What happens if what happens when the IRS sum you have to pay is so high that you are unable to pay it back? In this case, you are left with no option. You can pay taxes to the IRS and keep the roof in place.

The IRS may offer some relief to tax debtors who are in a position or unwilling. The IRS will not collect your tax debt if you are in the “currently not collectible” status. Services for tax settlement are offered to help you determine your eligibility and comprehend the possible drawbacks of this status and benefits.

Tax Penalties

If businesses or taxpayers don’t pay their taxes in time, or if they do not pay their taxes in full, the IRS may apply tax penalties and interest. The IRS may waive certain penalties under certain conditions. Your tax resolution firm helps you determine if this option is possible for you and help you determine whether you qualify.

Non-Filed Returns

It is expected to submit a tax return each year. However, this may not be feasible in all situations. An IRS representative may use that information to calculate the debt you owe. A tax consulting firm will assist in preparing your tax return from years past. It will also help you prepare your taxes for the future and help you create tax strategies.

Getting Back Taxes

It isn’t easy to pay all at once. To solve tax issues, you must review your return and decide if you’re liable. Collaboration in conjunction with the IRS to develop a strategy could be a part of the tax settlement process. We will talk in more detail about tax resolution services in this post.

The IRS Is Compromising

There are instances when the IRS is willing to negotiate with taxpayers. The IRS”Offer in Compromise program allows for payment that is less than what you are owed.

Negotiating with the IRS can be a bit difficult since they aren’t typically willing to cut down on the number of payments. Consult a tax professional to determine if the IRS will accept a compromise or offer a more favorable solution.

Payroll tax is required for companies that employ employees. The IRS could penalize companies that are not paying payroll taxes. The most common method is via the trust fund receipt Penalty. Tax resolution professionals can guide you through the penalty procedure of the IRS.

Wage Garnishment Help

The IRS is willing to go to the greatest measures to collect its money. One of them involves garnishing your earnings. It could make your pay less or even ineffective. Negotiating with the IRS regarding garnishing your income is a crucial element of tax resolution. Tax consultants are competent to assist you in creating an income and payment plan to submit to the IRS. This proves that you can make the payments without the IRS getting the money.

The faster you solve your tax issue, the better. Quick tax resolution can alleviate stress and headaches. Also, it means that you don’t have to pay extra to the IRS.

What Can Tax Resolution Do for You?

You can directly contact the IRS to solve tax-related issues. But, it’s better to seek help from tax experts.

Taxpayers, like you, have certain rights. These rights are outlined in the IRS Taxpayer Bill of Rights. You are entitled to work with a firm that offers tax resolutions that will aid in ensuring the rights of your interests and property are secured. Tax resolution companies can assist you in:

Evaluate Your Position

If you are engaging with a tax professional first, you should arrange a meeting. In this consultation, you’ll have the opportunity to discuss your specific situation with a tax expert who will go over your tax documents and assess the situation.

Consultation may help you determine whether you’re eligible for tax resolution. The tax professional can meet with you and guide you to an answer.

A Defense

Suppose an accountant or tax agent feels your situation could be a possibility. In that case, The second step will be to create a plan that will allow you to collaborate with the IRS to reach a mutually acceptable agreement. Enrolled agents will look over all your documentation when you’re being examined. They will then create a defense for your case.

Your tax advisor can create an installment plan to provide the IRS with the amount you’re able to pay. The defense and strategy you choose can shield you from getting overwhelmed by tax debts.

The Go-between

The Taxpayer Bill of Rights allows you to obtain representation. The tax advisor can act as a mediator or intermediary with the IRS. You aren’t entrusted with the burden of dealing with the IRS on your own 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 are well-versed in your rights and what you can do and can’t be held accountable to the IRS. You’ll feel less overwhelmed and more likely to get a favorable result.

How does tax relief work?

The IRS is a more caring and understanding organization than you may think. The IRS provides several tax relief programs available to those who are eligible for both companies and individuals.

Fresh Start is one example of a program like this. The IRS launched the program in 2011 to help individuals and businesses with difficulty paying tax obligations. The program brought about three major changes:

Liens Fresh Start:

The IRS increased the dollar threshold for lien. It was made easier to release liens after tax had been paid.

Installment agreement:

Fresh Start enables taxpayers to cooperate with IRS to create an installment agreement to pay the tax debt. Since they have the option of applying online and do not have to fill out paperwork, it’s much easy for those who have 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. A Compromise Offer is an option to negotiate with the IRS in exchange for a reduction of the amount you have to pay. This tax relief option is available once you have exhausted all options. The Offer in Compromise is offered to taxpayers who earn up to $100,000 or tax obligations that exceed $50,000.

You can apply for tax relief. But, many prefer to work with an expert tax advisor to ensure that they are doing the application and increase their chances of obtaining the relief they require. If you seek assistance with your tax issues, it is important to know that only a few people have the qualifications to assist or represent you. They include:

  • Agents enrolled
  • Certified public accountants
  • Lawyers

An IRS-authorized representative, also known as a registered agent, may represent taxpayers. To be an Enrolled Agent, one must pass a three-part test or have a record of working for the IRS.

BC Tax Can Help You Resolve Your Tax Issues

Our CPAs are registered agents that can assist you in evaluating your situation and discuss your situation with the IRS to decrease or eliminate tax liabilities, as well as assist you in filing the tax return. Our office is located in Colorado. We also serve taxpayers from all 50 states.

The tax situation of each person and the results will vary. Get in touch with BC Tax to learn more about your tax situation and what BC Tax might help.

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