In the course of my career as a tax resolution professional, I’ve witnessed how tax debt can be damaging to both personal and professional relationships.
What most people don’t realize is that it doesn’t have to get so complicated. With swift response and expert guidance, you can quickly sort out your tax debt before it adversely affects other aspects of your life. Before elaborating on the solutions, let me discuss some of the situations that might cause you to have tax arrearages.
Various Ways You Could End Up with Overdue Tax Obligations
Sometimes clients who approach me for tax resolution services express surprise at the amount of money they owe the IRS. This is partly because they wrongly assume that some financial transactions are not taxable. I’ve listed below some situations that could see you end up with tax debt.
Failing to File Tax Returns
Whether deliberate or not, failing to file your returns will not only cause you to owe the IRS but also incur penalties. These will invariably make your tax debt bigger. I never tire of reminding taxpayers of how important it is to file their returns on time. Although the IRS can waive some penalties, interest charged on unpaid tax bills cannot be forgiven.
Are You Financially Broke?
This is not the same thing as being poor. Being broke could mean one’s business is still running but experiencing cash flow problems. It could also say the taxpayer is using most of their income to service loans and other financial obligations. This is an ideal reason for hiring a tax resolution expert.
Circumstances such as sudden unemployment, the death of a close acquaintance, going through a divorce, or illness. They will in one way or another affect your ability to file returns or pay taxes on time.
Errors in Filing Tax Returns
If you choose tax credits that you don’t qualify for and the IRS notices, the agency will recalculate your tax to reflect what you owe. The same applies to business owners who estimate their taxes to be lower than what they should pay. After getting their taxes adjusted, they often end up owing more to the IRS.
I always caution taxpayers against seeking help from people who are not qualified tax experts. Seeking a layman’s advice on such matters could easily influence you to neglect some tax obligations. To avoid such mistakes, only seek help from qualified tax resolution professionals.
While it feels good to discover a good chunk of money, you should always remember tax obligations first. Financial surprises include lottery winnings, inheritance, annual bonus at work, and withdrawals from a benefit plan. They are all taxable, especially if received as a lump sum.
From my interactions with various taxpayers, I’ve discovered that it is easy to accrue tax debt even without awareness. Therefore, it is a good idea to contact the IRS and confirm the status of your tax account. If you discover that you owe the IRS, you should promptly seek the services of a tax resolution expert to prevent the debt from growing.
How Tax Resolution Professionals Can Help with Your Tax Burden
Most taxpayers I meet are generally apprehensive about dealing with the IRS. Over the years, the agency has gained a reputation for being an intimidating organization. You don’t have to deal with unnerving circumstances if you hire a tax debt resolution expert to represent you before the IRS.
If you contact us to handle your IRS settlement, the first thing we do after contacting the IRS and ensuring your assets and income are protected is go through your financial documents and compare them against your tax account. This gives us a good idea as to the most suitable IRS settlement option available to you. These options may include an IRS installment agreement, IRS offer in compromise (OIC), penalty abatement or innocent spouse.
We can help you choose an IRS settlement solution that is in your best interests. Our tax resolution services can ultimately end up saving you money that you’d have otherwise paid had you chosen to deal with the IRS by yourself.
Tax Resolution Services – Get Tax Debt Help
I’m sure you have a good idea of how tax resolution professionals can help you pay off your accrued tax debt. At True Resolve Tax, we offer these services to our clients at affordable rates. We use our expertise to represent you as your “Enrolled Agent,” and are bound by a Code of Ethics and Rules of Professional Conduct. In situations that may be complicated or stressful, it is a good idea to have someone qualified to act on your behalf.
Other than our professionalism, we’re also renowned for our honesty and commitment to the highest ethical standards. If you’re in Denver, CO, we’re always ready and willing to meet you face to face to get a firm grasp of your particular tax resolution and debt problem. This enables us to provide a solution that is customized and with your best interests at heart. Feel free to contact us today for more details.