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.