Tax Resolution: What You Need to Know
As much as people hate to deal with the Internal Revenue Service or IRS, sometimes there are tax concerns that need to be addressed. And the IRS is only doing their job after all. So we can all agree that tax resolution is a necessary part of any taxpayer’s life.
But what exactly is tax resolution? Well, the answer to that is quite simple: tax resolution is the act of resolving various tax-related issues. There are different services used for different concerns. And there are plenty of companies out there that provide tax resolution services—helping taxpayers deal with the IRS.
Basically, a tax resolution company will offer important assistance to taxpayers who need to resolve tax debt issues. The tax relief organization will then work with the IRS on behalf of the taxpayer, to find a formal resolution.
It’s just something most people shouldn’t do on their own, especially without legal knowledge.
Gudeman & Associates Attorney’s can help you with tax resolution. We can provide advice, guidance, and representation: or all of the above. We will find all tax resolution options that are available for you, so that you can manage your finances more comfortably.
Tax resolution often involves the following services to taxpayers, depending on their financial situation:
Reduction or Removal of Penalties.
Let’s start with the most basic one:
How do you remove or at least reduce penalties on your tax debt?
These pesky penalties can quickly inflate your tax debt. But a licensed tax professional, as well as an attorney, can help determine if you qualify for penalty abatement.
Offer in Compromise
What if there’s absolutely no way for you to pay your tax debt at the moment? Enter the Offer in Compromise. The Offer in Compromise is a highly convenient form of tax resolution, especially for those who truly need it.
The OIC can help you resolve your tax problems, and it also comes with the handy little side effect of giving you significant savings. On average, people who use the Offer in Compromise to settle their debt end up paying less than 20 percent of the actual amount they owed to the IRS. It’s that effective.
This, however, is only applicable to those whose financial situation makes it nearly impossible for them to pay off all of their tax debt. As great as these savings may sound, you wouldn’t want to be in this situation in the first place.
But for those who need it, the OIC can allow them to utilize tax resolution over the long term with the use of an installment plan.
Criminal Tax Defense
In some cases, the IRS Criminal Investigation Division will start investigating a case due to suspicions of tax fraud. For those instances, you will need to hire a criminal tax defense professional to represent you. Of course, Gudeman & Associates Attorney’s is always there to help.
For these cases, the stakes are too high to simply go ahead and face a criminal investigation on your own. Whether a case involves tax fraud depends just as much on your actions as on your intentions. A criminal tax defense specialist can guide you through the investigation and tax resolution process. This should help you get the best possible chance of avoiding criminal charges.
Payment in Installments
Another method of tax resolution is the ability to pay off your debt in installments. This allows for the quick resolution of tax debt before it gets any worse. Paying in installments means you don’t have to pay everything at once, especially if you can’t do so at the moment.
An attorney or a tax resolution specialist can help you choose the appropriate payment plan that suits your capabilities. This makes a tax resolution company a valuable asset.
Negotiating an installment agreement by filing Form 9465 or the Installment Agreement Request also releases tax levies immediately.
Unfiled Tax Returns
There are a few reasons why taxpayers do not file tax returns for one or more years. Sometimes it is pure neglect, sometimes they are too busy. But in any case, unfiled tax returns can become overwhelming.
Missing a portion of your records—or all of it—can become a big problem in the future. But there are ways to approach the problem of unfiled returns.
Again, Gudeman and Associates Attorneys are here to help provide you with the support you need.
Removal of Federal Tax Lien and Levy
Taxpayers often panic when they are faced with a tax lien or levy: their property is in danger of getting seized by the government through the IRS, after all. So there’s a perfectly good reason why people worry about it.
A tax lien is when the government claims the rights to your property, as well as future properties you may acquire afterwards. The reason for the tax lien involves the taxpayer’s inability to pay off their debt.
On the other hand, the levy is the actual procedure of seizing the properties in question, be it your real estate, your car, your belongings, etc. The threat of aggressive collection should be dealt with immediately. You must seek professional help so that timely action can be taken to protect you.
This way, you can avoid such action and even obtain a permanent resolution to your debt problem.
Usually, the IRS will remove the Notice of Federal Tax Lien if you can show that the tax debt has already been paid in full, or if the lien was filed in error, or if the IRS did not follow proper procedures. Taxpayers who are going through bankruptcy when the lien was filed may also appeal to the IRS to remove the Notice of Federal Tax Lien.
The same goes for the levy. It won’t come out of the blue: the IRS will first issue a notice that it intends to levy and seize your assets. You will then have 30 days to challenge the tax levy to attempt tax resolution. You can also pay the amount due.
With proper tax resolution, you may be able to remove the tax levy anyway.
Work with Gudeman and Associates Attorneys today and learn more about tax resolution!