What Is Tax Resolution?

Most people only think of the IRS (The Internal Revenue Service) when it’s time to file their tax returns, pay their taxes, or receive their tax refunds. However, the agency can also act during other times when the situation requires it. For example, if the IRS thinks that an individual or business has underpaid, didn’t file a tax return, or hasn’t reported the real income, it will intervene to solve the issue. This is when the said individual or business usually needs to resort to certain tax resolution services to help them get out of trouble.
In this article, we will be explaining in detail what tax resolution actually is and how it works. We will also dive deeper into the most important details to consider, especially when you are in need of such services. Keep reading to find out more!

How Does Tax Resolution Work?

Benefiting from tax resolution services means collaborating with certain tax experts or even the IRS to solve your tax issues. There are a few reasons why the agency could come after you but one of the most frequent ones has to do with your tax returns. In some cases, the IRS could begin an audit to see whether or not you have indeed reported the real income amount and have made correct deductions. In other cases, the IRS might contact you if it thinks that you have reported less than your actual income to pay fewer taxes.
Besides that, not filing your tax returns for long periods could also cause the IRS to want to talk to you. Regardless of your situation, it’s the severity of it that can cause serious problems for an individual or business. This is when you might need to enlist the help of a tax professional that can offer tax resolution services.
Tax resolution services can be used in some of the following situations:
• Transcript protest: there are instances when the IRS makes mistakes and thinks that you have made more money than you actually did. Sometimes, they include the income of a former business partner or ex-spouse too, which is not correct. In that case, you can disagree with their decision and hire a tax expert to help you with a transcript protest and with gathering proof that they are wrong;
• Audit defense: in case you need to go through an audit because the IRS considers it necessary, you can hire a tax professional to help you with the defense. Remember that this doesn’t necessarily mean that you’ve done something wrong;
• Penalties: the IRS will charge penalties and interest when you are late with paying your taxes. However, thanks to a process called tax penalty abatement, you can have those erased. A tax resolution firm can help you in succeeding with that;
• Currently Non Collectible status: there are instances when paying the amount you owe to the IRS will get you into financial hardship. In this case, the IRS offers a currently non-collectible status that is temporary and thanks to which you won’t have to pay anything. Tax resolution services can help you when it comes to being eligible for this status;
• Unfiled tax returns: there are times when you don’t get to file your tax return when you should. In this case, the IRS will start guessing how much you’ve made based on previous documents. A tax resolution firm can help you file tax returns from past years and put everything in order;
• Back taxes: in case you owe back taxes to the IRS, it’s important to know why you are being charged those taxes. After that, you can collaborate with the agency to come up with a payment plan that’s suitable for you;
• Offer in Compromise: there are times when the IRS accepts a compromise and allows a taxpayer to pay less than what they owe. However, qualifying for the Offer in Compromise program is difficult and you may need the help of a tax resolution firm to be accepted;
• Tax lien: in this case, the IRS will put a lien on a property of yours when you fail to pay your taxes. Tax resolution can help with this issue too before it gets too complicated to handle;
• Wage garnishment: another thing that the IRS can do when you fail to pay your taxes is to garnish your wage. This could leave you with a much smaller income or no income at all. A tax resolution company can help you deal with this even before the agency starts the wage garnishment procedure.

Additional Features to Consider

It’s important to take into account that tax resolution can help you analyze your overall tax situation and come up with a solution in case you are in trouble with the IRS. A tax resolution firm will first establish a consultation to understand where you stand. In case the tax expert that you’re talking to considers that your situation can be solved, they will create a defense plan. They will analyze your documents and guide you when it comes to dealing with the IRS. A tax resolution firm can also come up with a repayment plan for you.
Also, a tax professional can act as your representative before the IRS or the mediator. So, in case you are afraid to go in front of the IRS alone, a tax resolution firm can do that for you.

How We Can Help You Decide

When it comes to how we can assist you in deciding on a tax forgiveness alternative, we can supply you with a collection of professionally written reviews on the majority of the country's top tax relief firms. Furthermore, thanks to our website, you may evaluate those companies and determine which one best meets your demands. Finally, the website's frequently asked questions section should supply you with all the crucial information regarding tax relief and beyond.

Bottom Line

In conclusion, the IRS is not as bad as you might think and it allows taxpayers to enlist the help of tax resolution firms to deal with their tax issues. The trick is to realize that you are in trouble before it’s too late and do something about it. Everything has a solution and these tax resolution options have been created to aid you and make your life easier, even when you have unpaid taxes or any other types of problems with the IRS.