Tax resolution services help you with the complex process of settling your tax issues. There are several tax problems you may need to solve like IRS liens, tax audits, back tax returns, or IRS levies. Let’s have a look at the top tax resolution services you should know.
Offer In Compromise
This service allows you to partially settle your total tax liability. For you to use this service, you must provide a good reason why the IRS should not collect all the tax owed. It is also usually based on your income, expenses, and assets.
This tax resolution service allows you to create a payment plan with the IRS through which you make payments periodically till you pay off all the taxes owed.
Depending on your circumstance, you can file bankruptcy. This service allows you to have your taxes canceled or you may be allowed to pay through a bankruptcy plan.
IRS Tax Appeal
Another service to employ is tax appeal. If the IRS takes a decision you do not agree with, you may request to file for an appeal on your case.
This is another tax resolution service you can use to cut down or cancel out the tax liability. The IRS can even agree to stop collection if you cannot pay the tax. You should know that this stop will be temporary as the IRS will still come back to your case when they feel your economic condition has improved.
Innocent Spouse Relief
If you file a joint tax return with your spouse, both of you will be held liable for any tax penalties. Due to this, the IRS can decide to come after one or both of you for the entire tax liability even if you are divorced. If you meet all the requirements for an innocent spouse relief, you would not be held liable for your spouse’s or ex’s tax.
Note: there are three types of innocent spouse relief you can file for. They include classic innocent spouse relief, separation of liability relief, and IRS equitable relief.
IRS Identity Theft
This usually happens when someone else uses your social security number to file a tax return. The IRS may reject your request for a tax return. After this, you may be sent a letter from the IRS stating a suspicious return. When this happens, you should complete an identity theft affidavit, attached with your tax return form and submit by mail. After this, a specialist will be assigned to look into your matter.
Note: you should know that you can use an identity protection pin (IP pin) to confirm your identity and approve your tax return. This will provide an additional layer of security to prevent identity theft.
This is another tax resolution service you should know about. You can use this service when you are unable to file your tax returns for the year. This will help you prepare returns from prior years and work with you to create a tax plan for the future.
Tax Audit Representation
The IRS may decide to audit your account due to suspicious activities when you filed your tax return. If you get this notice, there is no need to panic. Even though it can be intimidating, you can employ the use of tax audit representation to have a good audit defense. This is so the results of your audit will be accurate and as fair as possible.
You can employ the services of some companies who are majorly into tax resolution to help you analyze your situation and determine the best course of action.