The IRS has many duties, including collecting taxes and ensuring that taxpayers’ actions comply with tax laws. However, the IRS could also create serious problems for taxpayers with tax debt. They can take over assets, impose wage garnishment and even put businesses out of their business. This isn’t always done deliberately. Sometimes, these problems result from an error made by the IRS.
It is the responsibility of every taxpayer to look into tax resolution services. In doing this, they will be able to avoid many hassles and decrease their tax debt. The first step toward tax relief is asking, “What is tax resolution?”
What Is Tax Resolution?
In simple terms, tax resolution is the process where you collaborate with the IRS and tax experts to solve tax issues. This may include tax penalties, unpaid taxes you have incurred, or confirmation that you filed the correct amount on your tax return.
It is strongly advised that taxpayers employ an experienced tax expert to be aware of their tax obligations and tax system. Engaging a licensed tax expert like Tax and Law Research Inc. can take some of the burdens off your shoulders.
How Much Do the Tax Resolution Services Cost?
When you arrive to have the first consultation, we will review and go over your tax history and answer questions regarding your specific circumstances. Based on the nature of your tax situation, Tax resolution services could be priced from as little as a thousand dollars to several thousand dollars. But, solving the problem will help you avoid more financial burdens and problems with the IRS in the long term, ultimately saving your money.
There are various tax resolution options, and your tax expert can help you choose the best option.
Do Tax Resolution Services Really Work?
Tax resolution services work since tax relief firms, like Tax and Law Research Inc., employ various strategies to reduce the amount of tax debt. This usually involves discussions with the IRS and helps in audits.
Here are a few common solutions to tax relief that you’ll find together with tax professionals
If you cannot pay off your tax debt completely isn’t feasible that taxpayers may opt for regular payments if the IRS accepts. They’ll accept an installment plan most of the time since it implies that they will eventually receive the amount they owe. The installment plan may provide tax relief as it can allow you to avoid tax penalties and wage garnishments.
Two kinds are installment plans:
A tax professional will make sure that you pay the monthly payment. If not, they’ll discuss the matter in conjunction with the IRS.
Penalty Abatement or Adjustment
The tax bill is substantial if taxpayers are subject to penalties and accrued interest, usually because of the late payment of taxes and filing returns after the deadline. A penalty reduction can help eliminate the tax obligation that was assessed. A penalty adjustment can reduce the tax obligation.
These tax relief strategies can be applied only if there is a justifiable reason to allow the abatement or adjustment. Reasonable cause can come in a variety of forms, such as:
- An error made by the IRS
- The mailing address is not correct.
- The family was devastated by a loss or an illness.
The IRS generally offers the option of adjusting or removing up to one-third of your tax liability. Form 843 or Claim for Refund and Request for Abatement have to be completed.
Keep in mind: Tax resolution becomes more straightforward when working with an expert tax advisor, whether for penalties or interest or another issue.
Offer of Compliance: How Do I Get My IRS Taxes Forgiven?
If the taxpayer cannot make the minimum installment or offer in compromise, an offer in compromise could be an option. To settle your tax issues for business or personal or business taxes, and offering in compromise refers to a deal made with IRS and the IRS and the taxpayer to settle taxes that are not paid. The amount that is agreed to be less than the total amount due.
Both parties know that the taxpayer is not able to pay the taxes. This could mean that the enforcement of tax laws will cause damage rather than benefits to both the IRS and the taxpayer. So, the tax is to be refunded if the taxpayer is up-to-date and in compliance for the next five years. In the event of non-compliance, the taxpayer is responsible for paying the tax.
Lien Relief & Release
The IRS may issue a lien to assert the legal right to taxpayers’ assets as security if they haven’t paid their debt. Suppose the taxpayer fails to succeed in paying off their debt or engaging an accountant or a tax professional. In that case, the IRS may eventually seize the assets to pay off the debt. The IRS creates a lien to ensure that creditors know that the IRS is legally entitled to the taxpayer’s property.
There are many ways that the IRS will let the lien go:
- The tax debt has been paid.
- The statute of limitations for the collection of the debt expired.
- The debt was discharged in bankruptcy.
- The tax debt becomes legally unenforceable.
The IRS will release the lien within 30 days following the time one of these scenarios occurs.
If you require settling your tax debt through an installment agreement or the offer to compromise, or in any other way, make sure you get in touch with Tax and Law Research Inc. to assist you in working together with IRS.
How Can Tax And Law Research Inc. Assistance?
Tax and Law Research Inc. can help you with tax issues by addressing tax issues through audits or any other resolution for tax issues. Our tax experts are experienced and have an emergency number that allows us to connect directly with IRS-enrolled professionals. We can resolve many tax-related issues right on the phone and eliminate the need for paperwork and the lengthy waiting time for a reply from the IRS.
We’ll be there at tax time or throughout the remaining months of the year so that we can address your tax concerns and formulate strategies for a better future.
Contact us now!