The Internal Revenue Service (IRS) is responsible for enforcing tax laws in the United States. It can be stressful and overwhelming if you owe back taxes, penalties, or interest to the IRS, it can be a stressful and overwhelming experience. However, the good news is that the IRS offers tax resolution services to help individuals and businesses resolve their tax issues. This article will discuss how IRS tax resolution services can help you.
Understanding IRS Tax Resolution Services
IRS tax resolution services are designed to help taxpayers who owe back taxes or have other tax issues. These services are available to individuals, businesses, and other entities. Several types of tax resolution services are available, including installment agreements, offers in compromise, and currently not collectible status.
An installment agreement is a payment plan that allows you to pay off your tax debt over time. The IRS offers several installment agreements, including streamlined and non-streamlined agreements. A streamlined agreement is typically easier to obtain and requires less documentation than a non-streamlined one. With an installment agreement, you’ll make monthly payments to the IRS until your tax debt is paid in full.
Offers in Compromise
An offer in compromise is an agreement between you and the IRS to settle your tax debt for less than the total amount owed. To qualify for an offer in compromise, you must demonstrate to the IRS that you cannot pay your tax debt in full. When evaluating your request, the IRS will consider several factors, including income, expenses, and assets.
Currently Not Collectible Status
Currently, not collectible status is a temporary status that the IRS may grant to taxpayers who cannot pay their tax debt due to financial hardship. When you are not collectible, the IRS will not attempt to collect your tax debt. However, interest and penalties will continue to accrue on your tax debt until paid in full.
How Can These Services Help You?
There are several ways that IRS tax resolution services can help you resolve your tax issues.
Reduce Your Tax Debt
One of the primary benefits of IRS tax resolution services is that they can help you reduce your tax debt. This can be accomplished through offers in compromise or installment agreements. By working with the IRS to negotiate a lower tax debt amount or a payment plan, you can reduce your financial burden and get back on track.
Stop Collection Actions
If you owe back taxes to the IRS, they may take collection actions against you. This can include wage garnishments, bank levies, and property seizures. IRS tax resolution services can help you stop these collection actions and protect your assets.
Avoid Penalties and Interest
When you owe back taxes to the IRS, penalties and interest can quickly add up. This can make paying off your tax debt difficult and even lead to further financial hardship. IRS tax resolution services can help you avoid penalties and interest by negotiating a lower tax debt amount or a payment plan that works for you.
Navigate Complex Tax Laws
Tax laws can be complex and confusing, especially when you owe back taxes to the IRS. IRS tax resolution services can help you navigate these laws and understand your options for resolving your tax issues. They can also help you avoid future tax issues by guiding tax planning strategies.
Provide Legal Representation
If you face an IRS audit or other legal issue, IRS tax resolution services can provide legal representation. This can help ensure your rights are protected, and your tax issues are resolved fairly and equitably.
In conclusion, if you owe back taxes to the IRS, it can be a stressful and overwhelming experience. However, IRS tax resolution services can help you resolve your tax issues and get back on track.