{"id":129276,"date":"2023-05-16T02:28:17","date_gmt":"2023-05-16T02:28:17","guid":{"rendered":"https:\/\/businessyield.com\/?p=129276"},"modified":"2023-05-27T21:44:34","modified_gmt":"2023-05-27T21:44:34","slug":"tax-resolution","status":"publish","type":"post","link":"https:\/\/businessyield.com\/tax\/tax-resolution\/","title":{"rendered":"TAX RESOLUTION: Meaning & Everything You Should Know","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Tax resolution specialists are qualified people who examine and evaluate your tax position and represent you in communications with IRS officials. On the other hand, knowing the ins and outs of financial disclosure and being able to assess the tax relief alternatives you qualify for based on your financial circumstances are essential skills for a tax resolution professional. So in this article, you find out what tax resolution means and every other thing you need to know about it.<\/p>

What Is Tax Resolution<\/span><\/h2>

Tax resolution is the process of engaging with the IRS and tax experts to resolve your tax issues. For a number of reasons, the IRS may not be satisfied with your tax return or current tax situation. The IRS may audit you, for instance, if your tax return is difficult, to make sure you are reporting the correct amount of income and making legal deductions. In rare circumstances, the IRS might think you underreported your income and want to investigate your tax status further.<\/p>

Why Tax Resolution Should Be Offered<\/span><\/h2>

There are many excellent reasons why tax professionals all over the country are expanding their tax resolution services, but let’s quickly look at the main three.<\/p>

#1. Income that Isn’t Seasonal<\/span><\/h3>

Help is needed for people with IRS issues all year round, not just from February to April. Offering tax resolution services enables you to make consistent revenue throughout the year as opposed to having to earn the majority of your income during the few months known as “tax season.”<\/p>

#2. Increase Income<\/span><\/h3>

Do you wish to double your income 8\u201323 times? Boost your practice by offering tax resolution services. Just $21.43 per hour is the average wage for tax preparation work. On the other hand, tax resolution might be valued at between $175 and $500 per hour.<\/p>

#3. Enhanced Contentment<\/span><\/h3>

Even in a sector where statistics are crucial, it can be challenging to put something like contentment into numerical terms. However, tax professionals virtually unanimously concur that tax resolution work is much more fulfilling (not to mention less monotonous) than tax preparation.<\/p>

How Does the Tax Resolution Work<\/span><\/h2>

Contrary to popular belief, the IRS is more sensitive and understanding. The organization runs a number of initiatives aimed at offering tax relief to eligible people and companies. In order to assist persons and businesses who were having trouble paying their taxes, the IRS established the program in 2011. Three things changed as a result of the initiative:<\/p>

#1. Liens<\/a><\/span><\/h3>

The IRS increased the lien dollar threshold as part of Fresh Start. Additionally, it made it simpler to release liens following the payment of taxes and permitted their release whenever a taxpayer established a direct deposit payment plan.<\/p>

#2. Installment Agreements<\/span><\/h3>

 Fresh Start facilitates the creation of an installment agreement between a taxpayer and the IRS to settle back tax obligations. People who owe less than $50,000 now have a simpler application process for agreements because they can do so online without having to complete specific papers. Additionally, Fresh Start increased the repayment period from five to six years.<\/p>

#3. Offer in Compromise<\/span><\/h3>

 Fresh Start also increased the program’s eligibility, which made more people eligible for it. You can reach a settlement with the IRS and pay less than what you owe by submitting an offer in compromise. When all other options for tax relief have been explored and exhausted, this one is still an option. Taxpayers with earnings up to $100,000 and tax liabilities up to $50,000 may qualify for an Offer in Compromise under Fresh Start.<\/p>

Tax Resolution Service<\/span><\/h2>

You might employ tax resolution services in the following situations:<\/p>

#1. Representation in Audits<\/span><\/h3>

Don’t freak out if you get a notification from the IRS saying you’re about to be audited. Although the audit procedure might seem scary, you don’t have to go through it alone. For a variety of reasons, the IRS audits people, but just because they choose to audit you don’t indicate you did anything wrong. You can feel more secure knowing that the results of the audit will be as accurate and fair as possible by hiring a qualified tax expert to assist you in putting together an audit defense.<\/p>

#2. Installment Contracts<\/span><\/h3>

You have the option to spread out your tax debts over a period of time, typically a few months or years, through an installment arrangement. You can prevent additional penalties like wage garnishment, tax levies, and other things by setting up a payment plan. There are different kinds of installment agreements, and a tax resolution specialist may help you choose the best one for your particular situation and assist you with filing.<\/p>

#3. Statement of Protest<\/span><\/h3>

Even the IRS is not perfect. Sometimes it estimates your income higher than it actually was or includes income from an ex-spouse or a previous business partner. If that occurs, you have the right to argue with the IRS and provide supporting documentation. To avoid having to pay the money you don’t owe, tax professionals can assist you in putting up a transcript protest.<\/p>

#4. Non-Recoverable Debt<\/span><\/h3>

What happens if you owe the IRS so much money that you are unable to repay it while still managing to pay your basic living expenses? You don’t have to decide between having a roof over your head and paying the IRS in that case.<\/p>

When you are unable to pay your tax burden, the IRS does provide some sort of help. The IRS won’t make an effort to collect the debt you owe while you are in what is known as a “Currently Not Collectible” status. You can determine if you are eligible for the status and learn about its advantages and disadvantages by using tax resolution services.<\/p>

#5. Penalty Taxes<\/span><\/h3>

When people or corporations pay their taxes late or not at all, the IRS frequently assesses interest and tax penalties. Thankfully, there are several situations where the IRS will forego the fine. Tax resolution companies can guide you through the process of evaluating whether or not you qualify for the penalty waiver and can assist you in determining your eligibility for tax penalty abatement.<\/p>

#6. Incomplete Returns<\/span><\/h3>

Every year, you are required to file a tax return, but there are times when life’s circumstances may prevent you from doing so. When that occurs, the IRS may make an educated guess as to how much you owe based on the paperwork it has already received, like Forms W-2 and 1099. You can get help preparing returns from prior years from a tax counseling company. Additionally, it can assist you with filing current taxes and collaborate with you to create a future tax strategy.<\/p>

What Can Tax Resolution Do For You<\/span><\/h2>

Even though you do have the option of handling your tax problems with the IRS on your own, it’s frequently to your best advantage to consult with tax experts who can assist you in dealing with the IRS and finding a solution to your issue.<\/p>

The Taxpayer Bill of Rights published by the IRS describes your rights as a taxpayer. You are entitled to: <\/p>