The Biggest Mistake Tax Payers Make Avoid Paying Back Taxes

Tax Bills, Tax Letters, Tax Resolution, Taxes / By admin

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The Biggest Mistake Tax Payers Make Avoid Paying Back Taxes | Reaction Tax Resolution Services NYC

One of the taxpayers’ most significant mistakes is failing to pay their back taxes. This is a common problem for many Americans, especially those who are self-employed or have multiple sources of income. When you owe back taxes, it can be tempting to ignore the problem and hope it goes away, but this is not a good strategy and will worsen the situation.

In this blog post, we will discuss the consequences of avoiding paying back taxes and what you can do to resolve the issue.

Consequences of Avoiding Paying Back Taxes

There are several consequences of avoiding paying back taxes. The first and most obvious consequence is that you will incur interest and penalties on the amount you owe. The longer you wait to pay, the more interest and penalties you accumulate, making it more challenging to pay off your debt.

In addition, the IRS can impose liens and levies on your property, including your wages, home, car, and bank accounts. This can make getting credit, selling your property, or accessing your funds extremely difficult.

Another consequence of owing the IRS is that it may damage your credit score, making it harder to get approved for loans, credit cards, and other financial products.

How to Resolve Back Tax Issues

If you owe back taxes, taking action as soon as possible is essential. The longer you wait, the worse the situation will become. Here are some steps you can take to resolve your back tax issues:

Seek professional help – Do not contact the IRS alone. That’s like going to court without a lawyer. Sometimes, you can reduce the amount you owe to the IRS, but only a tax resolution professional can help walk you through the maze of dealing with the IRS. If you need help with how to proceed or help to negotiate with the IRS, consider seeking professional help from a CPA, Enrolled Agent, or an attorney who is also a tax resolution expert.

When you are working with a tax resolution specialist firm like ours, we can help you as there are several options to resolve your back taxes. The good news is that the IRS has several debt settlement options, including its Fresh Start Initiative, and is generally willing to settle with taxpayers who can prove that they need more funds to pay the IRS in full.

If you owe back taxes, it is essential to take action as soon as possible to resolve the issue. The IRS offers payment plans and other options for taxpayers who cannot pay their total tax debt. By working with a tax resolution specialist, you can resolve your back tax issues and avoid further problems in the future.

If you need an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a

No-obligation confidential consultation to explain your options to resolve your tax problem permanently.

Tax Problems? Issues with the IRS? Call us now! Click here to send us a message

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Tax Bills, Tax Letters, Tax Resolution, Taxes / By admin

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How to Avoid a Surprise Tax Bill & What To Do If You Receive One | Reaction Tax Resolution Services NYC

Tax filing season is here again, and millions of hardworking Americans already dream of those extensive refund checks. Unfortunately, many of them may be disappointed this year.

Taxes can be a complicated and often stressful aspect of personal finance. Nobody wants to be caught off guard by an unexpected tax bill, but it can happen for various reasons.

So, what can you do if you find yourself in this uncomfortable situation? How can you avoid ending up with a big tax bill this year? Here are some tips to help you avoid a tax bill and advice on what to do if you get one. First, let’s start with how to avoid a surprise tax bill.

Keep track of your income and expenses throughout the year. One of the best ways to avoid a surprise tax bill is to stay on top of your income and expenses throughout the year. Keep track of all sources of income, including wages, self-employment income, and investment income.

Then, keep receipts and other documentation for expenses you can deduct from your taxable income to ensure you have all documentation for your case if a surprise tax bill does come up.

Adjust your withholdings

Make sure your employer withholds the correct amount of taxes from your paycheck. You may need to adjust your withholdings if you’ve had a significant life change, such as getting married, having a child, or changing jobs. Use the IRS withholding calculator to ensure you’re withholding the correct amount.

Pay estimated taxes

If you’re self-employed or have other sources of income that aren’t subject to withholding, you may need to pay estimated taxes throughout the year. The IRS provides forms and instructions for calculating and paying estimated taxes.

Review your tax return

Review your tax return from the previous year to ensure you have noticed all deductions and credits. This can help you avoid overpaying your taxes and receiving a surprise tax bill.

If you are in tax trouble (even with years of unfiled tax returns), contact our expert tax resolution firm for a free, no-obligation consultation. Contact us now. While you wait to have your consultation, here are a few steps you can take to help you in your situation.

Review the bill & determine the reason for it

Carefully review the bill to ensure everything is accurate. As you are reviewing your account, identify the reason for the bill. It could be due to an error on your tax return, an unexpected income change, or a tax law change.

Consider your options

If everything on the bill seems accurate and you are at fault for what the IRS claims you owe, you have a few options. If you can’t pay the bill in full, consider your options for resolving the debt. You can set up a payment plan with the IRS, negotiate a settlement or a few other options to help you. However, please do not ignore this tax bill, as the IRS can relentlessly collect what they believe is owed to them, and ignoring the situation will make it much worse.

Seek professional help

Please do not contact the IRS without representation; they can intimidate the average taxpayer and are not on your side. If you need help with how to proceed or need help to negotiate with the IRS, consider seeking help from a CPA, Enrolled Agent, or an attorney who is also a tax relief specialist.

We have years of experience helping taxpayers like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money, contact us for a consultation to learn about your options.

By taking steps to avoid a surprise tax bill and knowing what to do if you receive one, you can minimize the impact on your finances and avoid future surprises. Remember to stay organized throughout the year, review your tax return, and seek professional help if necessary.

Tax Problems? Issues with the IRS? Call us now! Click here to send us a message

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Preparación de Impuestos, Tax Resolution, Taxes / By admin

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Tax Problems? We can help you with our Tax Resolution service | Reaction Tax Resolution

Tax resolution is a process that helps taxpayers settle their tax debts with the Internal Revenue Service (IRS) and State Tax Agencies.

Taxpayers who have outstanding tax debts can choose to resolve their debts through different means, such as installment agreements, offer in compromise, penalty abatement, and currently not collectible status. The tax resolution process is complex, and it tends to vary depending on the taxpayer’s situation. In this article, we’ll explore the tax resolution process and its importance.

The tax resolution process can be initiated by the taxpayer, their tax representative, or by the tax authority. Taxpayers who notice that they cannot afford to pay their outstanding tax debts can choose to initiate the resolution process. The IRS or tax authority can also initiate the process through notices, liens, and levies. Once the process is initiated, the taxpayer and the IRS or tax authority can negotiate on the best solution to resolve the tax debt.

One of the tax resolution options available to taxpayers is the installment agreement. This option is suitable for taxpayers who cannot afford to pay their tax debts in full. Under the installment agreement, taxpayers can agree with the tax authority to pay their debts in monthly installments. The amount of the installment payments is determined by the taxpayer’s financial ability to pay and the outstanding tax debt.

Another tax resolution option is the offer in compromise. This option allows taxpayers to settle their tax debts for less than the full amount owed. The IRS or tax authority considers several factors such as the taxpayer’s outstanding debts, monthly expenses, and financial assets to determine the eligibility for an offer in compromise.

Penalty abatement is another tax resolution option. Taxpayers who incur penalties for failing to pay or file taxes can apply for penalty abatement. The IRS or tax authority can waive or reduce penalties if the taxpayer meets specific criteria such as reasonable cause, first-time penalty abatement, statutory exception, or administrative waiver.

Taxpayers can also qualify for a currently not collectible status. This status means that there is no requirement to pay the outstanding tax debt since the tax authority cannot collect the debt due to the taxpayer’s financial situation. The taxpayer must provide documentation to prove their financial inability to pay the debt. The tax authority may periodically review the taxpayer’s financial situation to determine whether they’re still eligible for the currently not collectible status.

The tax resolution process is essential for taxpayers who have outstanding tax debts. Tax resolution helps taxpayers avoid the negative consequences of unpaid taxes, such as tax liens and levies, seizure of assets, and damaged credit scores. Tax resolution allows taxpayers to negotiate with the tax authority for a reasonable payment plan, settlement, or reduction of tax debts. Tax resolution also provides a sense of relief and peace of mind for taxpayers who were previously stressed about their outstanding tax debts.

In conclusion, tax resolution is an essential process that helps taxpayers settle their tax debts with the IRS and State Tax Agencies. Taxpayers who have outstanding tax debts can choose to resolve their debts through options such as installment agreements, offer in compromise, penalty abatement, and currently not collectible status. The tax resolution process is complex, and taxpayers should seek professional help to navigate through the process successfully. Taxpayers who resolve their tax debts through tax resolution benefit by avoiding negative consequences such as tax liens, levies, seizure of assets, and damaged credit scores. Tax resolution also provides peace of mind and a sense of relief for taxpayers who were previously stressed about their outstanding tax debts.

Tax Problems? Issues with the IRS? Call us now! Click here to send us a message

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What is Tax Resolution & How Can It Help You During the 2023 Tax Season?

Preparación de Impuestos, Tax Resolution, Taxes / By admin

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What is Tax Resolution & How Can It Help You During the 2023 Tax Season? | Reaction Tax Preparation Services

Tax season can be unpleasant for many taxpayers, especially if you owe money to the IRS or State. The one thing you can do is, be proactive and prepared and engage a tax resolution specialist to help guide you.

If you owe back taxes to the IRS, read every word in this article carefully because what you do next can impact your financial stability and peace of mind. Today I will share the tax resolution and how it can help you.

Before we jump into it, if you have a back tax debt or years of unfiled tax returns, contact our firm for a consultation, contact us now. We always recommend that you talk to the IRS with representation as, many times, it makes your situation worse.

The IRS can be an intimidating agency to speak with and will do everything in its power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS; our firm can provide the peace of mind needed to resolve your tax issue.

What is Tax Resolution?

Tax resolution, also known as IRS Representation or Tax Controversy, is

Resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.

There are several options available for resolving taxes owed, including:

Payment Plan – A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.

Partial Pay Payment Plan – A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the total amount.

Offer in Compromise – An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the total amount owed. To qualify for an OIC, you must demonstrate that you must only partially pay your tax debt and meet specific eligibility requirements.

Currently Not Collectible – If you are facing financial hardship and cannot pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means the IRS temporarily suspends collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe; it just means it is a temporary suspension on making monthly payments to the IRS.

How Can Tax Resolution Help You?

If you find yourself in the unfortunate situation of owing back taxes to the

IRS, then here is how tax resolution can help you in several ways:

Avoid Penalties and Interest – When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly.

Reduce Your Tax Debt – Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make paying your outstanding taxes easier and getting back on track financially.

Protect Your Assets – If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.

Improve Your Credit Score – When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score.

In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later, and explore your options for resolution.

Our firm specializes in tax resolution; even if you have years of unfiled tax returns or owe the IRS over $10,000, we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently. Send us a message now.