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

Preparación de Impuestos, Tax Resolution, Taxes / By admin

Questions? Call us now! (212)304-1279 info@reactiontax.com Hablamos Español

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.

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Preparación de Impuestos, Tax Resolution, Taxes / By admin

Questions? Call us now! (212)304-1279 info@reactiontax.com Hablamos Español

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.