Tax season can be an unpleasant time of year for a lot of taxpayers, especially if you owe money to the IRS or State. The one thing you can do is, be proactive, and prepared, and engage a tax resolution specialist to help guide you.
If you owe back taxes to the IRS, then read every word in this article very carefully because what you do next can impact your financial stability and peace of mind. Today I am going to share with you what tax resolution is and how it can help you.
Before we jump into it, if you have a back tax debt or years of unfiled tax returns, contact our firm for a consultation at www.cottslaw.com. We always recommend that you do not talk to the IRS without representation as, many times, it makes your situation worse.
The IRS can be an intimidating agency to speak with and will do everything in its power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS and our firm can provide the peace of mind you need to resolve your tax issue.
What is Tax Resolution?
Tax resolution, also known as IRS Representation, or Tax Controversy, is the process of resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.
There are several options available for resolving taxes owed including:
Payment Plan – A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.
Partial Pay Payment Plan – A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the full amount.
Offer in Compromise – An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the full amount owed. To qualify for an OIC, you must demonstrate that you are unable to pay your tax debt in full and meet certain eligibility requirements.
Currently Not Collectible – If you are facing financial hardship and are unable to pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means that the IRS will temporarily suspend collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe, it just means it is a temporary suspension on making monthly payments to the IRS.
How Can Tax Resolution Help You?
If you find yourself in the unfortunate situation of owing back taxes to the IRS, then here is how tax resolution can help you in several ways:
Avoid Penalties and Interest – When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly over time.
Reduce Your Tax Debt – Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make it easier to pay off your outstanding taxes and get back on track financially.
Protect Your Assets – If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.
Improve Your Credit Score – When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score over time.
In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later, and explore your options for resolution.
Our firm specializes in tax resolution, even if you have years of unfiled tax returns, or owe the IRS over $10,000 we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. www.cottslaw.com