Demystifying IRS Tax Resolution: What You Need to Know

If you owe unpaid taxes or have failed to file taxes, chances are you have received urgent letters from the IRS asking you to pay back taxes plus penalties. The IRS is the most feared government agency, and dealing with them is never a walk in the park. If you're in such a predicament, don't panic! The IRS tax resolution process exists to help taxpayers resolve tax debts and get back on track with their finances.

1. Understanding IRS Tax Debts

IRS tax debts are complicated, and understanding the debt collection process can be overwhelming. When you file taxes, the IRS sends a notice outlining your tax debts and demands payment within a set period. When no payment is received, the IRS will levy your assets, garnish your wages, or place a lien on your property. In extreme cases, the IRS can seize your assets and sell them to cover your tax debts. To avoid such drastic measures, it's crucial to address your tax debts by seeking an IRS tax resolution.

2. Types of IRS Tax Resolution Options

IRS tax resolution options are mainly designed to help taxpayers repay their debts without causing undue financial strain. One of the most common tax resolution options is installment payments. This option allows a taxpayer to pay their debts in monthly installments until the owed sum is paid off. Another option is an offer in compromise, which allows taxpayers to pay less than the full amount owed. If you are experiencing financial difficulties, the IRS may temporarily suspend levies and installments through non-collectible status.

3. The IRS Tax Resolution Process

The IRS tax resolution process can be long and complicated. The first step is to contact the IRS and work with an IRS representative to assess your situation and file the necessary forms. After reviewing your case, the IRS will select an appropriate resolution option. In some cases, a taxpayer may need to hire an experienced tax resolution professional to help negotiate with the IRS. An experienced tax attorney can help prepare proper documentation and represent you in front of the IRS.

4. Avoiding IRS Tax Resolution Scams

While the IRS tax resolution process exists to help taxpayers, many scam artists take advantage of taxpayers' desperation. Scammers claim to offer instant tax relief, a guaranteed stop to any collections, or IRS representation, but these promises are not genuine. Scammers may also request upfront payments and personal information for "preparation and negotiation" of tax resolution options. Before engaging the services of an IRS tax resolution firm, it is crucial to conduct comprehensive research and seek professional advice.

For more info about IRS tax resolution, contact a local professional. 

About Me

how a tax preparer could improve the outcome

Do you prepare your own taxes each year? Have you received letters months after you have filed your taxes and spent your return telling you that you have made an error and that you owe the IRS a check to cover the discrepancy? This is something that has happened to me four times in the past eight years. Because of small errors, I have had to come up with money that I had to pay back and it made things more difficult than you might think. Since the last time, I have been paying to have my taxes prepared professionally and it has actually helped a lot. Find out what a difference a professional tax preparer could make on your taxes this year here on my blog.