In all my years as a tax professional, I’ve never come across any person who enjoyed receiving a call or visit from the IRS. Most times, the agency will come bearing bad news in the form of a tax lien. The reasons for falling behind on taxes vary depending on each person’s circumstances, some being beyond our control. For residents of Denver who owe taxes and are looking for solutions, True Resolve Tax has various ways of assisting. In this article, I will discuss five ways you can tackle your tax debt with our help.
1. Simplify Complicated Tax Information
A tax lien has far-reaching implications on the recipient’s business and assets. If you owe taxes to the government, the lien affects your credit score and makes it harder for you to manage your finances. The documentation and possible ramifications can be somewhat intimidating. We do our best to explain to our clients, in the simplest way possible, exactly what the IRS is asking them to pay.
We also explain to them the various possible penalties they face, and how they can go about resolving their tax issues in the most stress-free way possible.
2. Expedite the Tax Resolution process
We can hasten the tax resolution process on behalf of our clients depending on their level of tax compliance. The most important documents required are the client’s tax and financial records. We use these documents to assess their reasonable collection potential (RCP). If you owe taxes, the IRS calculates your RCP to determine your ability to pay your tax debt.
We also assist clients in retrieving any tax documents they might have lost or otherwise misplaced. The main advantage of using a tax resolution specialist is that the client saves a lot of time and energy that he’d have otherwise wasted had he attempted the process by himself. Our years of experience mean we can do it faster since we have done it countless times before for other clients.
3. Help with IRS Audits
Another way we help our clients is by representing them during IRS tax audits. Although being the subject of a tax audit can cause apprehension, it doesn’t always mean you have committed a tax-related offense. Sometimes the IRS selects random tax returns for review or picks some businesses as part of its tax compliance program.
If you owe taxes though and the IRS approaches you for an audit, the process goes smoother if you have a tax professional by your side. We help our clients retrieve any missing tax return and financial documents that might otherwise negatively impact the audit process. In some instances, we arrange IRS audits in such a way that the client doesn’t have to meet face to face with IRS revenue agents. This puts them more at ease and makes it less stressful and time consuming for them to cooperate with the IRS’ requirements.
4. Assist with IRS Tax Relief
If you happen to owe taxes and are in a very tight situation as far as your finances go, you may be eligible for tax relief. We assist our clients in pursuing tax relief by first assessing their ability to pay their tax debts. If the IRS determines that you’re not in a position to pay the taxes, or that forcing you to pay would plunge you into a catastrophic financial crisis, they can waive part of the debt.
We assist our clients by helping them apply for an Offer in Compromise (OIC). If successful, the IRS will allow you to pay only part of your tax debt in a way that you’re comfortable. You can either pay the reduced amount as a lump sum or in manageable monthly installments for a specified amount of time.
5. Come Up with The Best Tax Resolution Method
We have various tax resolution methods at our disposal. We usually pick the one that is most beneficial to our clients. If you owe taxes, some of the ways we use to help you overcome the problem include:
- Helping you negotiate an installment agreement with the IRS. Under this plan, you can pay off your tax debt in monthly installments for up to 6 years.
- Partial pay installment, whereby you pay lower monthly payments than you would have otherwise done under the first option above.
- Analyze the statute of limitations. If we determine that the client’s past due tax is ten years old from the time the IRS did its assessment of tax liability, we can assist in ensuring the tax debts are removed from your record and associated liens are released.
- Innocent spouse. This method applies if the client who owes taxes has been taxed more than necessary based on a mistaken filing by his or her spouse. This, however, is not such a straightforward process and might be extremely complicated.
- Offer in Compromise. As mentioned before, this method makes the client eligible for lower tax payments. The IRS does a thorough job of assessing the client’s financial standing and determines whether the entire tax debt can be repaid.
If followed to the letter, these five solutions will go a long way in solving even the most complicated tax problems. I always advise people who owe taxes to act sooner rather than later if they want to have a real chance of getting the IRS off their backs. Tax debts cannot be wished away, so the first step is to take a proactive approach to solve the problem.
If you would like to discuss your tax issues with professionals, feel free to visit us. We offer face to face meetings with our clients, which makes us better understand their particular problems. Already renowned for our honesty, we also live up to the highest ethical standards. Contact us today for more information.