Posts Tagged ‘Resolving’
Help Resolving IRS Tax Debt
31
Oct
Finding the appropriate process or the best tax expert is essential when it comes to settling tax debt. Tax debts should be settled as ASAP to prevent future collection actions, including additional penalties and interest. The earlier youresolve your tax problems the better since interest is charged with each passing day on back taxes. Just know, there are options out there for every person to resolve their tax problems with the Internal Revenue Service no matter how bad their monetary situation is. Below are steps/points recommended when you owe tax debt.
Go over your tax return and make sure you didn’t miss any major deductions. If you did make a mistake and missed a large deduction you can submit an amended tax return and then receive your new amended tax amount owed. If everything seems to be OK with the tax return you filed and you can’t pay to pay the lump sum amount of tax owed, go to the next item listed.
Depending upon your tax situation and amount of the tax liability, determine if you can settle back taxes on your own. Generally it is fairly easy to setup an arrangement with the IRS if you owe less than $10,000. The payment plan the IRS will want you to set up is an installment agreement. An installment agreement will let you pay the back taxes back in monthly payments within a specified amount of time. There are other forms of settlements available from the IRS, however they are much more difficult to to get and it is highly suggested that you hire a tax expert when trying to do those kinds of filings.
When you over $10K in back taxes, it is highly advisable that you seek the assistance a tax professional to help with your tax problem. There are 3 main types of tax experts that can help resolve tax debts, CPA, Tax Attorney, and an enrolled agent. All of these tax professionals do similar work, but some may be better than others depending upon tax situation. When hiring a professional you should always talk to more than one. Most tax resolution companies will offer a free, no obligation consultation. They will give you your likely outcome and a price estimate for their work.
If you owe taxes, it is best to quickly determine the best method for settling and settle as ASAP. Everyone has heard the horror stories of people losing homes, losing assets, getting wages garnished etc. The IRS has more powerful collection mechanisms than any other collection agency in the United States. The good news is that they will give you lots of notice and opportunities to settle and they are willing to work with you. Not taking action is the worst thing you can do, the sooner action is taken the better.
5 Keys to Resolving Your Tax Problems
30
Oct
So you have a problem with the IRS. No matter what your first instinct is, do not ignore it. It will not go away. In fact, it will get worse if you don’t address it. Here are 5 keys to resolving your tax problems:
1. Make a commitment to resolve the issue. Say to yourself here and now that you’re going to do whatever it takes to get the IRS off your back and make everything right again. Find out from the IRS what your outstanding balance is. You can either call the IRS and find out directly, or you can hire a tax attorney and have the attorney do it for you. The wiser of the two options is to let a tax attorney do the calling for you. A tax attorney knows the right questions to ask to get the information he needs to help you resolve the issue.
2. Don’t get your hopes up. Yes, the IRS grants forgiveness in some cases, and in some cases allows taxpayers to pay a small percentage of what they actually owe. Don’t assume that the same thing will happen to you. People whose debts are forgiven or who only pay a fraction of what they owe are able to show mitigating circumstances such as unemployment, catastrophic loss, disability, or limited income. If you can prove one of these things, you might also be forgiven or settle for much less than what you owe. If not, you will be expected to pay what you owe plus penalties and interest. However, a tax attorney will be able to help you pay the minimum amount legally allowed by utilizing an intimate knowledge of tax law and loopholes, so make sure that one is working for you.
3. Don’t call them; they’ll call you. If you know you owe outstanding taxes from more than three years ago and haven’t heard from the IRS about it, talk to a tax attorney before contacting the IRS. Yes, everyone loves an honest taxpayer, but you need to know exactly what you’re getting in to before you contact the IRS.
4. Honor your agreement. When you work out a payment plan, stick with it. An untold number of taxpayers default after coming to some sort of agreement with the IRS, and the default only makes the situation worse. If something changes in your financial situation, let the IRS know. Or let your tax attorney know so that he can inform the IRS. Your tax attorney has an unequaled ability to mediate on your behalf with the IRS, so you can be sure that whatever deal he makes on your behalf is the best one available. Don’t mess that up by defaulting on your payments.
5. Hire a tax attorney. There’s a common theme running through these points, and that theme is the use of a tax attorney. Tax attorneys can negotiate with the IRS on your behalf, help you create a payment plan with the IRS, and help you prepare your returns in the future so that you can avoid any other problems. And tax attorneys are bound by confidentiality so that nothing you tell them can be shared in court. Tax attorneys can also intercept any correspondence or phone calls from the IRS, which will save you a lot of time and frustration.
Make a commitment to resolving your tax problems instead of ignoring them. Call upon the expertise of a competent local tax attorney. Stick with whatever agreement you make with the IRS. And be sure that you continue to use tax attorney services in the future to ensure that the IRS gets out of your business and stays out.