Discovering Solutions for IRS Tax Debt and Penalties through Tax Resolution
Dealing with IRS Tax Debt and Penalties?
You’re in good company. Numerous individuals and businesses encounter this challenge, often uncertain about where to seek assistance. In this article, we’ll delve into the vital elements of tax resolution and offer practical guidance for addressing your IRS tax concerns. Let’s get started!
What Set Us Apart
At Taxulo, we’re committed to providing you with a level of personalized service that sets us apart from other tax resolution companies. When you partner with us, you can have complete confidence that you’ll have direct access to the Certified Public Accountant (CPA) or Enrolled Agent (EA) who is intimately familiar with your case. We understand that effective communication is essential during the tax resolution process, and our dedication to transparency means you can always reach out to your designated CPA or EA whenever you need guidance, updates, or have questions.
Your financial well-being is our primary concern, and we’re here to offer you the peace of mind you deserve. We take pride in the one-on-one relationship we foster with each of our clients, ensuring you are informed and supported throughout your tax resolution journey.
When you choose Taxulo, you’re choosing a team that puts your financial success first.
What is Tax Resolution?
Tax resolution is the process of solving IRS tax debt and penalties using different strategies and negotiations. It’s a way to ease the financial burden caused by unpaid taxes and associated penalties.
Prevent Severe Consequences: Ignoring IRS tax debt can lead to serious consequences like wage garnishments, bank levies, and property seizures.
Reduce Financial Stress: Resolving tax debt can relieve financial stress and help you regain control of your finances.
Avoid Legal Actions: Tax resolution can help you steer clear of potential legal actions and lawsuits initiated by the IRS.
Types of Tax Resolution
Offer in Compromise (OIC): This option allows you to negotiate with the IRS to settle your tax debt for less than the full amount if you can’t pay it all.
Installment Agreement: An Installment Agreement lets you pay your tax debt in manageable monthly payments, suitable for those unable to pay the entire bill at once.
Penalty Abatement: Penalty abatement is when you request the removal of IRS penalties, granted in cases of significant financial hardship or reasonable cause.
Innocent Spouse Relief: Available to individuals who filed joint tax returns and wish to be relieved of their spouse’s tax debt.
How We Can Help You With Tax Resolution
Free Consultation: 1-2 days
A free consultation with one of our professionals who can guide you through the complicated world of the IRS.
Phase 1 - Investigation : 1 to 3 Weeks
By enrolling in this phase, you secure the expertise of a committed tax professional who will meticulously assess your IRS status. You will receive a comprehensive and precise report and analysis of your IRS-related tax matters. This report will offer a thorough examination of your options, based on your eligibility, to help you achieve tax compliance and resolve any outstanding tax debt.
Phase 2 - Active Resolution : 2 Weeks to 12 Months
(Depending on your circumstances)
Depending on the program(s) for which you qualify, this is the stage where we take proactive steps to bring your taxes in line with IRS requirements and work towards securing the most favorable resolution for you.
You are now in compliance, and your case is resolved! Enjoy financial success!
Our Tax Resolution Services
Our experienced team can provide expert representation during an IRS audit. We’ll help you gather the necessary documentation, communicate with the IRS, and work towards a successful resolution.
Our professionals can assist you with a range of IRS issues, including back taxes, installment agreements, and offers in compromise. We’ll work with you to find the best solution for your unique situation.
IRS wage garnishment is money deduction from an employee’s monetary compensation resulting from unpaid IRS taxes. Most likely, this should not be a surprise as the IRS will only levy one’s wages after repeated letters and warnings about the taxes owed. This is one of the IRS’s most aggressive tax collection mechanisms and should not be taken lightly. The IRS would instead resolve taxes differently, but they will levy when they feel they have run out of other options. It is essential to understand how garnishments work to ensure you take the appropriate actions to avoid them or stop the IRS from taking your wages.
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or another financial account, seize and sell your vehicle(s), real estate, and other personal property.
Contact us right away if you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing.
If you receive an IRS notice of levy against your employee, vendor, customer, or another third party, you must comply with the levy.
The IRS carry out their threats, so ignoring an IRS threatening letter is absolutely the worst thing to do. First, you should check the facts in the letter. If anything is amiss in their calculations or your liabilities or assessment, write a polite note back explaining the error or omission and see if they will remedy the situation. If they have reached the point where they are sending you threatening letters, however, you may need to be a little more proactive in resolving the situation before the IRS becomes proactive. You do not want this to happen. If you allow the IRS to take action before you do, it will result in you unnecessarily suffering at their hands. The IRS has considerable powers when it comes to collecting taxes, and they are rarely prone to taking the lightweight approach. The IRS sends out threatening letters when they know or think they know that you owe them money; beyond that, they have little interest in you.
Did You Receive an Audit Letter From the IRS? – The first step is not to panic. The IRS uses letters to communicate with taxpayers about IRS audits. As with most IRS communication, there are deadlines associated with IRS audit letters. You will have time to review the items that are being contested and prepare your response. Selecting a return for examination does not always suggest that the taxpayer has made an error or been dishonest. Some investigations result in a refund to the taxpayer or acceptance of the return without change.
What if you fail to file? – The IRS may file what is known as a substitute return for you. However, as you well know, the IRS will not be looking to save you any money. A substitute return will not include any of the standard deductions your accountant would typically include in your return. Case in point, a substitute return only allows one exemption: single or married filing separate, so you end up with higher tax liability than if you would have just filed.
A federal tax lien arises when a tax return is filed, and the tax isn’t paid after a demand for payment has been made. By law, the lien favors the United States and is upon all property and rights to property of the person with the unpaid tax. It gives the IRS the authority to seize any proceeds from real estate sales owned by a delinquent taxpayer. To protect the government’s right of priority against other parties owed money by the same person, the IRS will file a Notice of Federal Tax Lien, which puts other creditors on notice about the IRS’s claim.
Reduce Your IRS Debt with an Offer-In-Compromise – Qualifying for an offer-in-compromise settlement can save you thousands of dollars in taxes, penalties, and interest. An offer-in-compromise is an agreement between a taxpayer and the IRS to settle the taxpayer’s tax liabilities for less than the total amount owed. Absent exceptional circumstances, an offer will not be accepted if the IRS believes that the penalty can be paid in full as a lump sum or through a payment agreement.
Many married taxpayers file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the joint return, even if they later divorce. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held accountable for all the tax due, even if the other spouse earned all the income.