Have you been facing the constant fear of IRS audits, penalties, or overwhelming tax debts? If so, worry not, for there is a solution in the form of a Tax Resolution Service! Tax resolution helps individuals and businesses drowning in tax-related problems. This specialized service is designed to help you to escape the complex tax landscape, providing expert assistance in resolving tax issues effectively. By seeking professional tax resolution services from Abraham & Rose, you can protect your assets and prevent further financial hardships. However, certain things must be well understood before jumping onto the Tax Resolution Service. This is why we have prepared a guide explaining tax resolution and everything related to it.
What is Tax Resolution?
Tax resolution refers to the process of resolving tax-related issues with the IRS. The goal of tax resolution is to reduce the financial burden and legal consequences that might arise due to unresolved tax problems.
Tax resolution strategies may include negotiating instalment agreements, submitting offers in compromise, or requesting penalty abatements.
In most cases, the job of carrying out a successful Tax Resolution is often handed over to professionals. These professionals analyze a taxpayer’s financial situation, assess the tax liabilities, and develop personalized plans to address tax issues effectively.
How Does Tax Resolution Work?
When facing tax-related challenges like unpaid taxes or disputes with tax authorities, many individuals and businesses seek professional help to navigate the complexities of the tax system.
Here’s an overview of how tax resolution works and the strategies involved in resolving tax issues.
1. Thorough Assessment of Tax Situation:
The tax resolution process begins with a comprehensive review of the taxpayer’s financial records, tax returns, and any communication with the IRS or state tax agency.
A tax professional or tax resolution company will assess the case’s unique circumstances to determine the most appropriate course of action.
2. Different Strategies for Tax Resolution:
a) Installment Agreement:
An instalment agreement allows taxpayers to pay off their tax debt in manageable monthly instalments over a specified period. The IRS or state tax agency may approve an instalment agreement if the taxpayer cannot pay the full tax debt immediately. This arrangement provides relief to the taxpayer while ensuring gradual repayment.
b) Offer in Compromise:
An Offer in Compromise is a settlement agreement between the taxpayer and the IRS or state tax agency, enabling the taxpayer to pay a reduced amount to settle their tax debt.
To qualify for OIC, the taxpayer must prove financial hardship or that the tax liability is incorrect. OICs can provide significant relief, especially for those facing financial constraints.
c) Penalty Abatement:
Penalty abatement offers potential relief from penalties associated with tax debts. If a taxpayer can show reasonable cause for not paying taxes on time or failing to file tax returns, the IRS may reduce or eliminate these penalties. This allows taxpayers to focus on addressing the tax debt itself without the added burden of penalties.
3. Additional Relief Options:
a) Currently Not Collectible Status:
When collecting tax debt would cause undue hardship, the IRS or state tax agency may grant Currently Not Collectible status. This temporarily halts collection efforts while the taxpayer works to improve their financial situation. While in CNC status, the taxpayer is not required to make payments until their financial condition improves.
b) Innocent Spouse Relief:
Innocent Spouse Relief protects individuals from being held responsible for tax debt resulting from their spouse’s or former spouse’s actions. If taxpayers can prove they were unaware of the tax issues and shouldn’t be held liable, they may qualify for this relief.
Benefits Of Tax Resolution
Tax resolution offers several key benefits to individuals and businesses facing tax-related issues. Whether dealing with tax debt, unfiled tax returns, or disputes with tax authorities, engaging in tax resolution can lead to positive outcomes and improved financial well-being.
Here are Four benefits of tax resolution:
1. Alleviation of Financial Burden:
One of the primary advantages of tax resolution is its potential to alleviate the financial burden associated with unpaid taxes or unresolved tax issues. Tax debts can quickly accumulate, leading to mounting interest and penalties, making it a headache for taxpayers to pay off the entire amount at once.
However, Tax resolution professionals work with clients to develop easy-to-pay payment plans/ instalment agreements, allowing taxpayers to transfer payments over an extended period.
2. Protection from Legal Consequences:
Tax authorities have the power to impose tax liens, levies, or wage garnishments to collect outstanding tax debts. These actions can devastate personal and business finances, credit ratings, and even livelihoods.
With tax resolution services, taxpayers gain a vital shield against severe legal consequences arising from unresolved tax issues.
3. Expert Negotiation and Advocacy:
Negotiating with tax authorities can be intricate, requiring an in-depth understanding of tax laws, regulations, and negotiation techniques.
However, Tax resolution experts like Abraham & Rose bring huge expertise and experience to the table, acting as strong advocates for their clients. They present the taxpayer’s case, supporting it with relevant documentation and justifying tax relief.
This expert representation significantly increases the likelihood of reaching a favourable resolution, such as an Offer in Compromise or penalty abatement.
Applying for tax resolution can be a complex process, especially if you arent well aware of the tax laws. Howeer, following the right guide, things can become slightly more convenient.
How To Apply For Tax Resolution?
Here is how you can apply for a Tax Resolution in 7 Simple steps.
- Assess your tax situation and outstanding balance.
- Contact the IRS to understand your tax status and obligations.
- Negotiate with the IRS by addressing your current tax year and paperwork.
- Explore IRS instalment payment plans that suit your needs.
- File your tax returns on time, even if you can’t pay in full.
- Make necessary changes to your tax returns and clarify discrepancies.
- Consider consulting a tax specialist if needed for complex situations or uncooperative responses.
Get Tax Resolution From Abraham & Rose:
Although it’s possible to handle the tax resolution process on your own, We would never recommend it. The IRS agents will ask for detailed financial reports, complex questions and additional documentation which may make the case more complex.
This is because even if the taxpayer is innocent, there is always the chance of making mistakes without proper knowledge.
However, by getting help from professionals like Abraham & Rose, you rest assured that they will not only handle the case but do everything to ensure that you get the best possible result.
We follow step-by-step process to ensure our client’s success. This involves understanding the situation, gathering the required documents and taking appropriate steps to secure success in IRS Tax Resolution.
Contact Abraham & Rose P.L.C. For A Free Initial Consultation
Contact our attorneys for a free initial consultation. Unlike other tax advisors, our firm prides itself on its ability to furnish direct contact between attorney and client throughout the entire process.
Frequently Asked Questions
Taxpayers have various options for Tax Resolution, such as:
- Installment Agreements, where you can pay your tax debt in monthly instalments,
- Offer in Compromise, which allows qualified individuals to settle for less than the full amount owed,
- Currently Not Collectible status for temporary financial hardship,
- Innocent Spouse Relief for certain situations, and filing amended tax returns to correct errors.
If you fail to comply with your agreed-upon Tax Resolution plan, such as missing payments on an Installment Agreement, the IRS may revoke the arrangement. This can lead to resuming aggressive collections actions, such as wage garnishments or bank levies.
An Installment Agreement is an arrangement with the IRS to pay your tax debt monthly. It allows you to spread out your payments, making it easier to manage your tax debt.
To qualify, you must owe less than $50,000 (for individuals) or $25,000 (for businesses) and demonstrate the ability to make the payments.