What exactly is tax resolution?

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Many individuals only consider the IRS during tax season and while waiting for their tax return. The IRS does, however, make its presence known at other times of the year. The government may take action if it suspects a person or firm has not declared enough income, has underpaid or has not filed a return when they should have. When this occurs, a person or business may need tax resolution company services to assist fix the problem, paying back taxes, or getting tax relief.

What exactly is tax resolution?

The process of dealing with the IRS and tax specialists to find a solution to your tax concerns is known as tax resolution. For a variety of reasons, the IRS may have a problem with your tax return or tax status. If you have a difficult tax return, the IRS may audit you to ensure that you are reporting the correct amount of income and claiming proper deductions. In rare situations, the IRS may feel you have underreported your income and may wish to investigate your tax status further.

Another IRS issue happens when you fail to submit your taxes for numerous years. Eventually, the problem may become bad enough that you need outside assistance to get back on track and avoid getting taxed more than you owe by the IRS.

Here are some examples of when you can need tax settlement services:

Representation in an audit

Don’t be alarmed if you get a notification from the IRS that you will be audited. Although the audit process may be scary, it is not something you should do on your own.

The IRS audits people for a variety of reasons, and just because the IRS audits you doesn’t indicate you’ve done anything illegal. Hiring a competent tax expert to assist you in putting up an audit defense will provide you peace of mind that the audit findings will be as accurate and fair as feasible.

Protest transcript

The IRS, too, makes errors. It may assume you earned more money than you did, or it may combine revenue from an ex-spouse or a previous business partner with your earnings. When this occurs, you have the right to disagree with the IRS and offer facts to support your position. Tax specialists may assist you in preparing a transcript protest so that you do not have to pay the money you do not owe.

Non-recoverable debt

What happens if the amount you owe the IRS is so large that you can’t repay it while maintaining a respectable standard of living? You don’t have to pick between a roof over your head and paying the IRS in that circumstance.

When you are unable to pay your tax bill, the IRS can provide some help. During a “currently not collectible” status, the IRS will not attempt to collect the sum you owe. Using tax resolution services will help you determine if you qualify for the status and understand the advantages and cons of doing so.

Penalties for unpaid taxes

When individuals or corporations pay their taxes late or not at all, the IRS usually charges interest and tax penalties. Fortunately, the IRS will waive the penalty in specific circumstances. Tax resolution services may assist you in determining if you are eligible for tax penalty abatement and guide you through the decision-making process.