What is tax resolution?

• Tax resolution involves negotiating with the IRS or state tax authorities to resolve tax debts or disputes. It aims to settle taxes owed through payment plans, offers in compromise, or other methods to avoid severe penalties.

When should I consider tax resolution services?

• Consider tax resolution services if you owe back taxes, face IRS audits, have unfiled tax returns, or need assistance negotiating a manageable repayment plan with tax authorities.

What should I do if I receive a tax notice from the IRS?

• If you receive a tax notice, don’t ignore it. Review the notice carefully, understand the issue, and gather any necessary documentation. You may need professional assistance to respond effectively.

How can I avoid an IRS audit?

• While audits are random and not entirely avoidable, maintaining accurate records, filing on time, and reporting income and deductions truthfully can reduce your chances of being audited.

How does tax resolution affect my credit score?

• Tax resolution can positively impact your credit score by preventing tax liens and reducing debt balances. Resolving tax issues promptly demonstrates financial responsibility to creditors. Please note, tax liens may not be reflected on credit reports but can still be detrimental for other third-party decisions.

Can tax resolution services negotiate with the IRS on my behalf?

• Yes, tax resolution services specialize in negotiating with the IRS or state tax authorities to reach favorable settlements, such as installment agreements or offers in compromise, on behalf of taxpayers.

What are my options if I can’t afford to pay my taxes in full?

• Options include installment agreements, where you pay off taxes over time, or offers in compromise, where you settle for less than the full amount owed. A tax resolution professional can assess your eligibility and guide you through these options.

How do I know if I qualify for an offer in compromise?

• Qualification for an offer in compromise depends on factors such as your income, expenses, asset equity, and ability to pay. A tax resolution expert can evaluate your financial situation and determine if you qualify.

What are the consequences of not resolving tax debts?

• Failure to resolve tax debts can lead to penalties, interest accrual, wage garnishment, asset seizure, and damaged credit ratings. Seeking tax resolution can prevent these consequences and provide relief.

What should I do if I receive a tax lien or levy notice?

• If you receive a tax lien or levy notice, act promptly by seeking professional tax resolution services. Experts can help negotiate lien releases, installment agreements, or other solutions to resolve the issue.

Are tax resolution services expensive?

• The cost of tax resolution services varies based on the complexity of your tax situation and the services required. However, resolving tax issues promptly can save you money in the long run by avoiding penalties and interest.

Can I negotiate with the IRS on my own?

• Yes, you can negotiate with the IRS directly. However, working with tax resolution professionals who understand IRS procedures and have experience can increase your chances of achieving a favorable outcome.