When it comes to taxes, there are so many hidden rules and regulations that might trip you up when it’s time to pay annual taxes. However, if you stumble upon one of these regulations and find yourself in need of tax debt resolution help to deal with the issue, read on.
What is Tax Resolution?
Tax resolution is the process of working with the IRS and tax professionals to find a solution to your tax problems. The IRS might have an issue with your tax return or tax situation for a few reasons.
Tax-debt relief is a broad concept covering a variety of options. Each option is designed to try and find the best possible compromise between taxpayers who have fallen behind on their tax payments and the IRS.
Once you discuss your situation with the IRS and come to a compromise, you’ve created your personalized debt relief program. Debt relief usually takes the form of a payment plan or a debt settlement.
It’s best to make sure you stay on top of any potential debt issues because the consequences of delinquent taxes are as harsh as it gets. You might end up spending more money than you could imagine when it comes to tax penalties.
Potential Reasons You Might Get Tax Penalties
If you are. . .
- A taxpayer who has fallen behind and lacks the resources to pay your debt via personal loan, home equity loan, credit card, investments, etc.
- A taxpayer in arrears who has come to the attention of private debt collectors hired by the IRS.
- A person who has failed to file tax returns for any number of years but who has (so far) managed to operate beneath the radar of the IRS.
- A taxpayer whose debt is so “seriously delinquent” ($50,000 or more) that the IRS has instructed the State Department to deny, revoke, or confiscate their passports.
How To Handle Your Tax Debt Issues
When it comes to handling your tax debt, there are a few ways to deal with your issues. We at Guardian Tax Law are here to help you with your needs. Contact us so we can figure out the best relief program for your specific situation.
It can be hard to keep up with all the rules the IRS has regarding taxes. The IRS rules are constantly changing regarding what type of Installment Agreement a taxpayer can qualify for.
Installment agreements are payment plans that allow you to pay your debt over some time (that you establish with the IRS).
Individual taxpayers who owe up to $50,000 or more can work with the IRS so that they can pay through monthly direct debit payments for up to six years and avoid the imposition of a tax lien.
Depending on your needs, there are other ways to negotiate an Installment Agreement. These extenuating circumstances can be if you owe more money or if you need longer than six years for your tax debt repayment.
Currently Not Collectible
This program will change according to the type of tax you (or your business) owe to the IRS, largely because the type of tax owed can result in you getting your balance frozen for at least two years (but likely longer).
If this happens to you, all collection activity by the IRS or a State will be halted/prevented. For this option, you will be required to negotiate this temporary cessation based on your financial information.
This plan can help because (aside from delaying any collection), most IRS debt expires ten years from the date of assessment. Many older debts will expire while a taxpayer is in this status.
Offer In Compromise
This is an amazing program for individuals who qualify after going through a rigorous IRS analysis.
An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. This means that you can compromise with the IRS to pay less than what you owe . . . and the IRS will write off the rest of the total.
(If you have the financial means to pay your debts, you will likely not qualify for this program.)
No matter your situation, we at Guardian Tax Law are here to help you. Contact us today for help with your situation.
310 S Williams Blvd, Ste 260 Tucson, AZ 85711