Due to some unforeseen circumstances, some taxpayers may at some point find themselves owing the government tax debt. Trying to deal with this situation individually might prove to be an uphill battle, which is why tax resolution services are essential. As a qualified tax professional with True Resolve Tax, I have witnessed how helpful these services are to my clients.
What Kind of Problems can a Tax Resolution Service Solve?
Due to varying occupations, sources of income and business practices, it’s possible to run afoul of the IRS even without intending to do so. A simple miscalculation can have far-reaching consequences on your tax account. I always advise taxpayers to err on the side of caution, especially when it comes to stating additional sources of income.
The IRS recognizes both individuals and businesses as tax-paying entities. As such, there are various tax-related problems that might prompt one to seek tax resolution services.
- Individual Tax Problems
These include IRS lien, IRS levy, and wage garnishments.
- Business Tax Problems
Other than liens and levies, a business might also have to deal with IRS and state penalties, as well as business payroll tax debt.
A lien refers to the federal government’s legal claim on your property as a result of your failure to pay the tax debt. A tax levy is the act of seizing a taxpayer’s property as a way of satisfying a tax debt. Before resorting to this option, the IRS gives the affected taxpayers ample time to clear their tax arrears. It’s worth noting that the federal tax agency doesn’t need a court order to execute this action.
Wage garnishment is a type of administrative levy that occurs when the government deducts money from your salary or other forms of monetary compensation. The deducted funds pay your tax debt until it’s either completely settled or you arrive at a more comfortable payment method. Although the IRS doesn’t require a court order for wage garnishment purposes, it should meet the following requirements before resorting to this option:
- Must have sent written notices and demand for payment to the concerned taxpayer.
- The taxpayer must have failed to service his or her tax arrears within the period specified in the notices.
- Must send a final notification explaining its intent to initiate garnishment, as well as your right to a hearing at least a month before the levy.
While your tax account is in arrears, it will incur some penalties, which will only increase the amount you owe the IRS. Penalties may be imposed for various reasons, including:
- Underestimating or late payment of taxes. Therefore, I encourage my clients to make timely, reasonable amounts in quarterly estimated taxes to avoid underpaying for the tax year.
- Failing to file tax returns on time.
- Making errors during filing such as failing to follow the right regulations.
- Failing to provide crucial information that might affect the amount of tax you pay such as having shares in a foreign company.
- Deliberately committing tax fraud.
If you own a business and neglect to file payroll taxes, the IRS can initiate various punitive measures. Other than shutting down your business without needing a court order, you could be held personally liable. This could lead to the tax agency seizing your assets to settle the payroll tax debt.
In extreme circumstances, if the IRS proves that you deliberately failed to file your business’ payroll tax returns, you could be charged with committing a federal crime.
The Importance of Tax Resolution Services
From taking a cursory look at the above tax related problems, it’s clear that tax resolution services are a necessity for taxpayers. This is especially true for anyone who suddenly finds himself owing tax debt without really understanding how he got to that point. It is not easy for non-specialists to understand the IRS tax code with all its complex sections.
One advantage I offer my clients is that I have a deep understanding of the various federal and state laws. This means their tax issues get resolved faster because I provide solutions that are customized for a particular violation.
These services also give you a better chance of settling your tax debt for less than the IRS is demanding. If successful, tax settlement methods such as the IRS offer in compromise and installment agreement could potentially save you thousands of dollars.
As an Enrolled Agent, the IRS also empowers me to represent my clients in negotiations with the tax agency. This comes as a relief for most taxpayers who might be anxious about meeting with the federal agency’s representatives.
As part of the various resolution methods at my disposal, I make sure my clients have all the necessary documents that provide compliance with the regulations to ensure more productive meetings with federal tax agents. All these practices afford our clients much-needed peace of mind when it comes to an event that might be otherwise rather stressful.
Features of Qualified Tax Resolution Professionals
So how can you tell that a tax expert is skilled?
The simplest way is to scrutinize their credentials. Genuine service providers won’t have a problem showing their qualifications as a way of proving their worth. For example, at True Resolve Tax we continuously undergo training with the aim of ensuring the highest quality services we can possibly provide for our clients, for all licensed staff as well as our support staff.
Another feature of a qualified tax professional is experience. The longer such a person has been in this occupation, the better their grasp of challenges associated with tax-related problems—as well as how to best solve them.
Other characteristics of good service providers include:
- A tax professional who has your best interests at heart will be forthcoming with you about your chances with the IRS. They will give you the facts, not just what they think you want to hear.
- Good reputation. If a firm has helped many former clients in the past, chances are good they will spread the good news either through word of mouth or via online platforms. A firm with a solid reputation is probably qualified to provide tax services.
- Customized service provision. This means a tax professional who takes a keen interest in your particular problem, instead of giving you generalized suggestions.
Although this is not an exhaustive list, hiring a firm with the above features is a huge step towards solving your problems with the IRS.
Get Professional Tax Debt Help
You shouldn’t have to anguish through the IRS tax debt on your own. Given how complicated the process can be, I would strongly recommend that you hire a tax professional to guide you. As an Enrolled Agent with the federal government, we’re licensed to negotiate with the IRS on your behalf.
At True Resolve Tax, we have unmatched experience and expertise in providing tax resolution services. We treat each case with the seriousness it deserves, and we’ll go out of our way to ensure the best possible outcome for you. If you’re in Denver, CO, we encourage you to visit us for a deeper understanding of your tax-related issues.