Everything You Need to Know About Tax Resolutions

By Robert Lear posted 12-09-2020 02:11 AM


Are you struggling with back tax issues? Then you’ll benefit from tax relief and tax resolution services. 

In fact, it’s recommended that you seek the advice and assistance of a professional if you find yourself in this situation.

You must do it before the IRS decides to take severe measures which might include forcibly taking some of your property in order to pay off your taxes. 

Punishment measures for back taxes can come in the form of a bank levy or a tax lien on your property. 

The bank levy is the IRS' favorite strategy as it allows them to get the taxes that you owe from your bank. 

Levy Warning Signs

The IRS can’t trigger any bank levy until they’ve notified you as the taxpayer. They will do this by sending you a written notice or two and you have the right to contest or appeal them in writing as well to avoid the levy altogether. 

You may also request the IRS to release the levy if it can be proven that you’re in such dire financial condition that you’ll need to pay your back taxes off in installments through a payment plan. 

However, you must never ignore these notices because if you do, then the IRS will start calling you and they might even assign you a collections agent who will pay you a rather unpleasant personal visit. 

For best results, keep the communication lines open with the IRS and let them know what your financial condition is from the beginning. 

Why Consider Tax Resolution Companies?

Once you start working with a tax resolution services company then you’re basically asking them to communicate with the IRS on your behalf and fix the problem for you. 

The great thing about working with an experienced tax resolution representative is that they have a wealth of knowledge on how these procedures work and will be able to advise you on the best route to take. 

A vast majority of people will qualify for an installment agreement that enables you to pay both back taxes and current taxes. 

However, with the right representative by your side, you won’t be forced to pay more than what you can afford in monthly installments. 

An installment agreement can be a lifesaver that can prevent things like total business closure. 

What Do You Need to Do?

The first thing you need to do is file all of your outstanding and current returns in order to determine the extent of your liability. 

Then, you can move on to deciding whether or not you’re able to afford to pay the amount that you owe based on your financial situation or that of your business depending on who owes the taxman in the first place. 

You’ll need to complete a financial disclosure form from the IRS in order to help them determine what your income and expenses, liabilities, and assets are. 

When it comes to tax resolution, financial disclosure is one of the best ways to resolve the problem. 

However, it can get quite complicated at this point to deal with everything that this entails, and this is where the services of a professional tax resolution company come in.