When it comes to taxes, many individuals and businesses face complex issues that can be overwhelming and stressful to navigate. The IRS (Internal Revenue Service) is a federal agency responsible for administering tax laws, and they have the power to enforce tax collection through various means, including liens, levies, and wage garnishments. However, the IRS also offers resolution services to help taxpayers resolve their tax problems. In this article, we will discuss the benefits of utilizing IRS resolution services when facing tax problems.
What are IRS Resolution Services?
The IRS offers a range of resolution services to help taxpayers resolve their tax problems. These services include:
An installment agreement is a payment plan that allows taxpayers to pay off their tax debts over time. The IRS offers different types of installment agreements, depending on the amount owed and the taxpayer’s financial situation.
Offer in Compromise
An offer in compromise is an agreement between the taxpayer and the IRS that settles the tax debt for less than the full amount owed. The IRS may accept an offer in compromise if they determine that the taxpayer cannot pay the full amount owed, or if paying the full amount would cause economic hardship.
Currently Not Collectible
If a taxpayer is unable to pay their tax debt due to financial hardship, the IRS may declare their account currently not collectible. This means that the IRS will temporarily stop collection efforts and may reevaluate the taxpayer’s financial situation at a later time.
Innocent Spouse Relief
Innocent spouse relief is available to taxpayers who filed a joint tax return with a spouse or former spouse who understated their tax liability. Innocent spouse relief may provide relief from joint liability for taxes, interest, and penalties.
Benefits of Utilizing IRS Resolution Services
Expertise and Knowledge
IRS resolution specialists have extensive knowledge and expertise in tax laws and regulations. They understand how the IRS works and can help taxpayers navigate complex tax issues. IRS resolution service providers are trained to negotiate with the IRS on behalf of their clients and can help taxpayers find solutions to their tax problems.
Protection from IRS Collections
The IRS has the power to collect unpaid taxes through various means, including liens, levies, and wage garnishments. Utilizing IRS resolution services can protect taxpayers from these collection efforts. IRS resolution specialists can negotiate with the IRS to find a solution that works for the taxpayer and prevents collection actions.
Savings on Penalties and Interest
When a taxpayer owes back taxes, the IRS may impose penalties and interest on the amount owed. Utilizing IRS resolution services can help taxpayers save on penalties and interest by negotiating with the IRS to reduce or waive these fees.
Payment Plan Options
IRS resolution services can help taxpayers establish payment plans that fit their individual financial situations. Payment plans allow taxpayers to pay off their tax debts over time, making it more manageable to handle the debt.
Reduced Stress and Anxiety
Tax problems can be incredibly stressful and anxiety-inducing. Utilizing IRS resolution services can reduce this stress by providing a path forward and a solution to the problem. Taxpayers can have peace of mind knowing that their tax issues are being handled by a professional.
Navigating tax problems can be a daunting task, but utilizing IRS resolution services can provide numerous benefits and help taxpayers find relief. IRS resolution services can provide expert knowledge and expertise in tax laws and regulations, protect taxpayers from IRS collections, save on penalties and interest, provide payment plan options, and reduce stress and anxiety. Common tax problems that taxpayers face, such as back taxes, tax liens, and wage garnishments, can be effectively addressed with the help of an IRS resolution specialist.