The world of taxes can be intimidating to many tax-payers because it includes many different processes and practices they may not know, risking a penalty from the Internal Revenue Service or IRS. The agency collects federal taxes and ensures that people comply with tax laws while handling tax refunds, which means that most people think about their taxes only during tax season.
However, the IRS makes itself known to taxpayers even outside of tax season. If it believes that an individual or a business gave an inaccurate report of their income, underpaid their taxes, or didn’t file a return, it can penalize taxpayers. When this happens, the taxpayer may need tax resolution services to address the issue, pay what they owe, and seek tax relief help. Here’s what you need to know:
All About Tax Resolutions
Tax resolutions involve working with tax professionals and the IRS to address your tax problems. The IRS may take issue with your tax situation or tax return for a few reasons, such as an overly complicated tax return that will require the IRS to audit you to check that you are reporting the right amount and claiming valid deductions. If it thinks that you underreported your income, it’ll analyze your tax situation further.
Another issue the IRS may have with your taxes is if you do not file them for many years. The problem might progress to the point where you’ll need a tax resolution specialist to help get you on the right track and avoid paying more than what is necessary.
Scenarios That Require Tax Resolution Services
There are a few scenarios in which you’ll find tax resolution services helpful. Here are some of them:
Non-Collectible Debt
If you owe a significant amount to the IRS to the point that you cannot repay it or afford your necessities, you’ll have to choose between paying for your cost of living or repaying the IRS. In this case, you can work with a tax resolution specialist to take advantage of the IRS’s tax relief that applies to this scenario. It offers a Currently Not Collectible status, in which the IRS won’t attempt to collect the debt you owe.
Transcript Protest
The IRS is made up of humans who also make mistakes, which means it may have made an error when auditing your taxes. Sometimes, the agency might have wrongfully believed that you made more money than you declared because your return included income from an ex-spouse or former business partner. Fortunately, you can disagree with the IRS when this happens as long as you provide evidence that supports your claim. You can also work with tax professionals to prepare a transcript protest.
Audit Representation
If the IRS sends you a notice that it will audit you, don’t worry—it doesn’t necessarily mean that you’ve done anything wrong. It audits taxpayers for many different reasons, but hiring a tax professional can help you prepare an audit defense that will give you peace of mind should anything arise from the audit.
Unfiled Returns
While everyone must file a return every year, other things get in the way sometimes, preventing them from doing so. When this happens, the IRS estimates how much you owe in taxes based on the documents it has, like Forms W-2 and 1099. Working with a tax professional will help you prepare your return based on the last few years and even construct a tax plan for you to stay on track.
Tax Penalties
Lastly, if you owe taxes and cannot pay the total amount in one lump sum, you can work with a tax resolution specialist to assess your returns and work out a plan. The specialist will also study your returns to make sure you are indeed responsible for your taxes.
Conclusion
Dealing with taxes can be frightening and overwhelming when you aren’t sure of what to do, but working with tax resolution services can help you in all these scenarios and more. By seeking help right away, you’ll arrive at a solution that works for both your situation and the IRS.
Axiom Tax Resolution Group helps taxpayers find tax relief solutions when they have difficulty paying their taxes. Our tax resolution specialists will help you find a permanent solution to your problems with the IRS, putting you on the right track to tax compliance. Contact us today to find out more about how we can help you!
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