Possible Tax Resolution Strategies to Ease Your Mind If You Owe Money to the IRS

by | May 5, 2023 | IRS

A letter from the IRS can be incredibly frightening for sincere taxpayers. Any taxpayer would feel uneasy knowing that the IRS has the authority to take your property, freeze your bank account, and even attack your wages, unlike most other government organizations.

It’s important to remain calm if you receive a leter from the IRS informing you that you owe additional taxes. Even while it might seem impossible, there are specific actions you can do to pay off your tax burden and repair your relationship with the IRS.

We invite all readers who are having tax issues to get in touch with us for a free consultation since we are a tax resolution firm.

It’s important to be a knowledgeable taxpayer. The three methods listed below can help you pay off your tax burden while maintaining your mental stability. Although not all of these choices will be suitable for everyone, being aware of them can ease your mind. Although the IRS can be intimidating, if you know what to say and how to handle the situation, they may actually be reasonable.

Review Your Tax Return in Question and the Amount Owed

Do not assume that the IRS is correct if they claim you owe money. Taxpayers, tax preparers, and the tax agency all make mistakes occasionally.

Whether you did your taxes yourself or had a professional do them, COTTS LAW can help make sure you understand your situation and options available.

You must carefully review your return and contrast your findings with what the IRS is asserting. Even if you first filed your taxes on your own, it is important to have professional advice for this tax review. You might be able to save money by having a specialist with IRS knowledge find mistakes and discrepancies that you would have overlooked on your own.

Even though the IRS claims that you will owe further taxes, it doesn’t harm to double-check. Many taxpayers who thought they owed the IRS money owed nothing or even got a refund from the organization.

Create a Payment Schedule

It might be unsettling to get a notification of additional tax owed from the IRS, especially if you are unable to pay the amount the organization claims you owe. However, remember that you are not required to pay the bill in full at once.

Paying what you owe could become more manageable and less stressful if the IRS is ready to work with you and establish payment plans. Again, it’s a good idea to look for expert advice and assistance in this situation. You don’t want to be stuck with a payment plan you can’t afford since the IRS may be a tough negotiator. When COTTS LAW is in your corner, we are the ones controlling your cash-flow, not the aggressive IRS.

The IRS may take additional enforcement measures, including as garnishing your wages or restricting your bank accounts, if you fail to adhere to the payment plan you agreed to. You can prevent these grave repercussions by enlisting the expertise of a tax resolution specialist up front.

Investigate a Potential Offer In Compromise

You might be able to work out a reduced payment if you truly are unable to pay the full amount the IRS alleges you owe. Although the IRS may not actively promote this program, the tax authority frequently accepts smaller payments from taxpayers, especially if those taxpayers have few assets and litle income. If you qualify, they may occasionally be for a small portion of what is owed. To find out if you qualify, we provide a free, no-obligation consultation www.cotslaw.com.

Working with a tax resolution specialist is essential if you decide to go with either of the last options. Knowing the provisions of the Internal Revenue Manual (the IRS “rules that must be followed) and knowing how to discuss Installment Agreements can make a huge difference in the amount of your monthly payment.

The language and words used in these Offers in Compromise may be quite complicated and challenging to understand. You want to make sure that paying the compromise account will result in a full settlement of your tax debt because you don’t want to make a mistake in this situation. Call us today at (361) 866-3819 or visit us at www.cotslaw.com.

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About Daniel T.A. Cotts

Daniel is a skilled Tax Attorney who moved to Corpus Christi in 2019 to expand his practice and return to Texas. With over 26 years of experience in the legal profession, Daniel brings a wealth of knowledge of Taxation, IRS Dispute representation & resolution, Estate Planning, Accounting, and Business & Contract Law to South Texas.


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