What Is Tax Resolution?

People tend to only think of the IRS during tax season, as they await their refund. However, the IRS can also be present at other times throughout the year. The agency can take action if it believes that an individual or company hasn’t reported sufficient income, underpaid taxes, or hasn’t filed a tax return as required.

If you have been contacted by the I.R.S. about tax penalties, an Indiana Tax Lawyer can negotiate the best possible outcome for you in the tax resolution process.

What is Tax Resolution?

Tax resolution involves working with the IRS or tax professionals to solve your tax problems. There are a few reasons the IRS may have a problem with your tax situation or tax return. The IRS may audit you if you have a complex tax return to ensure that you are correctly reporting income and taking the correct deductions. The IRS may believe that you have under-reported income in some cases and might ask for more information about your tax situation.

If you haven’t filed your taxes in several years, this is another example of an IRS problem. The IRS can eventually become so serious that you may need to seek outside assistance to help you get your finances in order and avoid being charged extra.

When Might You Need Tax Resolution?

There are some situations where you might need tax resolution services.

Audit Representation

Don’t panic if you get a notice from IRS that you will be audited. Although it can be daunting, the audit process is not something you should do on your own.

There are many reasons the IRS may audit taxpayers. However, just because they decide to audit you does not mean that you have done any wrong. You can rest assured that the audit results will be accurate and fair by hiring a professional tax consultant.

Transcript Protest

The IRS also makes mistakes. Sometimes the IRS believes that you earned more than you did or includes income from an ex-spouse, former business partner, and your income. You have the right to disagree and present evidence to support your case to the IRS. You don’t need to pay any money if you have a transcript protest prepared by tax professionals.

Non-collectible Debt

What happens if you owe the IRS so much that it is impossible to pay back taxes and you cannot pay reasonable living expenses? You don’t have the choice of paying the IRS or keeping your roof on.

If you cannot pay your tax debt, the IRS offers relief. The IRS will not attempt to collect your debt if you are in a “Currently Uncollectible” status. Tax resolution services can help determine if you are eligible for this status, and help you understand the advantages and disadvantages of using it.

Tax Penalties

When individuals or businesses fail to pay taxes on time or pay too late, the IRS will charge interest and tax penalties. The IRS may waive the penalty in certain cases. The IRS will waive the penalty in certain cases. Tax resolution firms can help determine whether you are eligible and guide you through the process.

Unfiled Returns

Although you are required to file tax returns each year, there may be times when life or other circumstances prevent you from doing so. The IRS may use the information it has received to calculate how much you owe. Tax consulting firms can assist you in preparing returns for past years. A tax consulting firm can help you file your current returns and work with you to create a tax plan that will be effective in the future.

Repaying taxes

If you owe back taxes, you may not be able to pay the entire amount in one lump sum. Tax resolution includes analyzing your returns to determine if you are responsible for any back taxes. This can include working with IRS to create a plan that makes it easier for you to pay the tax.

Compromise with the IRS

Sometimes, the IRS may be open to compromise with taxpayers. The IRS may accept a payment less than you owe if you owe a substantial amount and you cannot pay it. It’s difficult to compromise with the IRS since the agency rarely accepts requests for lower payments. A tax lawyer can help determine if a compromise with the IRS is possible to resolve your tax problem or if there are other options, such as a payment schedule.