The United States tax code is a 75,000-page document that’s filled with legal jargon. Understanding everything in the tax code is a complicated process- even for trained professionals. If you (or your business) have fallen behind on tax obligations, you may be wondering how to get started with the tax resolution process. Indeed, the consequences of failing to pay your taxes are extensive. However, finding out how to deal with the IRS is complicated for many people.
This is where tax resolution services step in. With tax professionals by your side, you’ll be able to understand your situation, negotiate with the IRS, and develop a plan for repaying your backdated taxes. The right professionals can also help you remove any liens or levies that may have been placed on your assets.
Because of the vital role that tax resolution professionals play, hiring the right company will be key to relieving your tax burden. Remember that not all tax resolution services are created equal. Therefore, you should carefully do your research before making a decision.
Benefits of choosing a qualified tax resolution service
Many tax resolution specialists are Enrolled Agents with the IRS. This means that they’re authorized to represent your interests directly to the agency, thus helping you resolve complex tax issues promptly.
Choosing the right tax resolution service will help you benefit in the following ways.
1. Assistance with resolving back taxes
As of 2019, 1 in 5 people owed money to the IRS. This shows how the problem of back taxes occurs more frequently than you might think. By choosing the right tax resolution company, you’ll be able to resolve issues with past-due taxes, unfiled returns, and delayed payments.
There are many reasons why you may end up owing money to the IRS. As an individual taxpayer, issues such as illness, financial hardship, and incarceration may cause you to fall behind on your tax obligations. Therefore, you’ll need professionals by your side who can help you navigate the tax code and resolve your tax-related issues. The same applies to businesses. Owing money to the IRS as a business may result in many different consequences. A tax service will help you address these issues in a timely fashion.
2. Negotiating the removal of liens and levies
Of the many different consequences that come with owing the IRS for outstanding taxes, liens and levies are perhaps the most significant. A tax lien secures your debt against your current assets, which means that you won’t be able to carry out regular transactions with your property. On the other hand, a levy is the actual seizure of your assets by the IRS.
If you’ve been hit with a lien or levy, working with a tax resolution service will be critical. These professionals know what it takes to have a lien/levy removed so you can regain access to your assets.
3. Stopping wage garnishments
If you owe money to the IRS, the agency is legally permitted to recover any outstanding amounts from your wages. This means that your paycheck may be partially reduced by the IRS to satisfy any outstanding amount.
We all know how vital your paycheck is, and having unexpected deductions, in some cases up to 85% may result in significant consequences. Such situations are where tax resolution services come in handy. Because of how complicated wage garnishment can be, these professionals will help you stop these untimely deductions so you can negotiate a more favorable repayment option.
For example, an extended repayment plan, an Offer in Compromise, presenting a hardship, or even filing for bankruptcy may help you stop a wage garnishment.
4. Negotiating repayment plans
If you owe a large amount of taxes, you may be wondering where to get started. Indeed, what was initially a small amount may have been compounded over time with penalties, fees, and other related fines. A tax resolution service can help you regain control of your tax situation. They help you get a fresh start by reducing your tax burden (in terms of fines and penalties) and removing liens that may be crippling your financial operations.
As Enrolled Agents with the IRS, tax resolution professionals can help you apply for the IRS Fresh Start program. This program allows you to settle the outstanding tax debt throughout a 6-year period.
What to look for in a quality tax resolution service
How can you identify the best professionals to assist with your current IRS issues? Here are several qualities you should look for in a tax resolution company.
1. Expertise and professional ratings
Perhaps the most essential factor to look for is expertise. Any agency you work with should be licensed to handle tax issues within your field. Because Congress passes new laws from time to time, tax policies will change regularly. Expertise in the field is key to finding the best professionals that can represent your interests.
Another good idea is to check the agency’s Better Business Bureau (BBB) ratings. By reviewing the grade, score, and any complaints filed, you’ll have a good idea about what to expect.
When it comes to dealing with a 75,000-page tax code, experience is the best teacher. Look for a tax resolution service that understands the law and has worked with people/businesses in similar situations. Experience allows the agency to provide the best advice possible, and to resolve complex tax situations such as liens and levies.
If your assets have been seized due to owed taxes, this is not the time to experiment with a tax resolution company. You’ll need experienced professionals by your side that can negotiate an effective settlement or payment plan as soon as possible.
3. Knowledge of local tax laws
While federal taxes apply throughout the country, state taxes will vary according to your state of filing. Therefore, state tax issues are best handled by a local agency that specializes in the area’s tax laws. For example, Colorado state liens are filed with the Colorado County in which you reside. Reversing such liens will be best done by a local tax resolution service that understands the relevant laws.
By talking to people who’ve used tax resolution services in the past, you can gain valuable insights regarding the expertise, customer service, attention to detail, and effectiveness of a particular company. Therefore, make sure you request 3-4 references that you can talk to.
Inquire about specific experiences (such as their tax situation), and whether their problem was adequately addressed.
At True Tax Resolve, our team of dedicated tax professionals is committed to helping you address any IRS issues. Whether you owe money, haven’t filed your returns, or you’ve been issued with a lien/levy, we have the experience and expertise necessary to help you resolve complicated tax problems. Are you ready to enjoy tax relief? Contact True Tax Resolve today.