We will discuss tax resolution services. Tax resolution services are provided by the U.S. Internal Revenue Service (IRS), which 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 returns and disbursed more than $400,000 in refunds to taxpayers.

 

Many people only think about the IRS when tax time approaches and wait to receive their tax returns. Sometimes, the IRS is visible at other times of the year. However, there are exceptions. The IRS could initiate an investigation if an individual or business suspects that they’ve not declared enough income, are underpaid, or did not file the necessary tax returns. In such cases, individuals or companies may need tax resolution services to address the issue, repay taxes, and receive tax relief. We’ll be discussing tax resolution services in more detail in this article.

 

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 cannot resolve. When your tax issue is complex or complex, the IRS might investigate you to make sure you report your income correctly and make the appropriate deductions. The IRS may suspect that you have not reported income correctly in certain situations and might need to investigate the tax implications of your situation.

Another issue with the IRS can arise when you do not submit your tax returns annually. The IRS might increase the amount of tax owed if you don’t pay your taxes at the right time.

Here are a few examples of times when you might need to make use of the tax resolution services

 

Audit Representation

 

Do not worry if you receive an IRS notice informing you that your tax returns are being reviewed. Even though it can seem intimidating, you don’t need to complete the whole audit on your own.

 

The IRS examines taxpayers for different reasons. However, just because the IRS is auditing you doesn’t suggest that you’ve committed a mistake. 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 it’s because the IRS considers that you earned more money than what you earned or even includes earnings from an ex – or former business partner with your earnings. In this case, 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 you discover that the IRS sum you have to pay is so high that you cannot pay it back? In this scenario, you are left with no option. You could choose to pay taxes to the IRS and keep your roofing on.

 

The IRS can relieve tax debtors who are in a position or unwilling. The IRS will not collect your tax debt in the “currently not collectible” status. Services for tax settlement are offered to help you determine your eligibility and comprehend the potential disadvantages 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 tax, the IRS may apply tax penalties and interest. The IRS can waive penalties under certain conditions. Your tax resolution service determines if this option is available to you and helps you determine whether you’re eligible.

 

Non-Filed Returns

 

It is normal to submit a tax return each year. However, it might not be the case in all situations. An IRS representative could use this information to determine the debt you owe. Tax consultants can assist you in preparing your tax return from years past. They can also assist you in preparing your taxes for the future and help you with tax-planning strategies.

 

 Getting Back Taxes

 

Taxes on back taxes aren’t easy to pay in one lump sum. To resolve tax issues, you must review your return and decide if you’re responsible. The collaboration with the IRS to develop a strategy is a component of the tax settlement process. We will discuss tax resolution services in this post.

 

The IRS Is Compromising

There are times when the IRS will negotiate with taxpayers. The IRS”Offer in Compromise program allows for payments that are lower than what you are owed.

Negotiating with the IRS can be difficult because they aren’t often willing to negotiate payment reductions. A tax professional can assist you in determining if the IRS will be willing to accept a compromise or offer a more favorable solution.

 

Payroll tax is a requirement for companies that employ employees. The IRS could penalize companies that are not paying payroll taxes. It is usually via the trust fund receipt Penalty. Tax resolution professionals can assist you in understanding the penalty procedure of the IRS.

Wage Garnishment Help

 

The IRS goes to great measures to collect its money. One of them could be to assail your pay. It could make your pay smaller or ineffective. Negotiating with the IRS regarding garnishing your earnings is a crucial element of tax resolution. Tax consultants are competent to assist you in developing the payment schedule that you can present to the IRS. This will show that you can pay the tax without the IRS accepting the cash.

 

The faster you solve your tax issue, the better. A prompt resolution to tax issues can help you avoid 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 may work directly with the IRS to solve your tax-related issues. But, it’s better to seek help from tax experts.

 

Taxpayers, like you, have certain rights. These rights are outlined within the IRS Taxpayer Bill of Rights. You are entitled to work with a business offering tax solutions that can aid in ensuring the rights of your interests and property are safeguarded. A tax resolution firm will be able to assist you:

 

 

Evaluate Your Position

 

If you’re engaging with a tax professional, you should first schedule a consultation. At this time, you’ll have the opportunity to discuss your particular issue with a tax professional who will review your tax documents and assess the situation.

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

 

A Defense

 

Suppose a tax professional or enrolled agent believes your situation could be possible. The following step would be to develop a plan that will allow you to cooperate with the IRS to reach a mutually acceptable agreement. Enrolled agents will go through the entirety of your paperwork when you’re being investigated. They will then draft a defense for your case.

 

Your tax advisor can create an installment plan to inform the IRS of the amount you can afford to pay. The defense and strategy you choose can shield you from being overwhelmed by tax debts. 

 

The Go-between

 

The Taxpayer Bill of Rights allows you to obtain representation. Your tax professional can serve as an intermediary and mediator with the IRS. You aren’t entrusted with the burden of dealing with the IRS on your own through a tax resolution company.

An IRS accountant and an agent enrolled possess many years of knowledge and in-depth knowledge of the tax laws. They know your rights and what you can and are not held responsible by the IRS. You’ll be less anxious and more likely to get a favorable result.

  

How does tax relief work?

 

The IRS is a more caring and understanding institution than you may think. The IRS provides various tax relief programs to people and businesses who qualify.

 

Fresh Start is one example of a program like this. The IRS launched the program in the year 2011 to assist both individuals and businesses that had difficulty paying tax obligations. This initiative led to three modifications:

 

 

Liens Fresh Start:

 

The IRS increased the threshold to $2,000 for lien. It made it easier to release liens after tax had been paid.

 

Installment agreement:

 

Fresh Start enables taxpayers to work with the IRS to create an installment agreement to pay taxes. Since they can apply online and don’t have to fill out forms, it’s simpler for those with less than $50,000 of owed tax debt. Fresh Start also extended the repayment period to six years instead of five years.

 

Compromise Program:

 

Fresh Start widened the offer of this compromise program. The program now allows more applicants to apply. An Offer of Compromise can be an option to negotiate with the IRS to pay less tax than 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 on your own to get tax relief. Many prefer to work with an expert tax advisor to ensure they are doing the application and to increase their odds of obtaining the relief they require. If you seek assistance in your tax issue, be aware that only certain individuals 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, you must pass a 3-part exam or demonstrate a track 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 analyzing your situation and discuss your situation in conjunction with the IRS to minimize or eliminate tax burdens and assist you in making tax-related returns. Our headquarters are in Colorado. We also serve taxpayers from all 50 states.