Suppose you’re dealing with the IRS collections process and the related penalties and consequences that come with that. In that case, you’ll need experienced tax resolution advice, guidance, and representation to navigate the IRS and resolve your issues quickly and effectively.
But how do tax resolution companies help? Read on to learn more about tax resolution and how you may benefit from it.
Tax Resolution Services
A tax resolution company will assess your tax problems and work to resolve your tax issues on behalf of you or your business. Here are some of the services that a tax resolution company can provide.
Offer in Compromise
An OIC (Offer In Compromise) is the most effective way to resolve and reduce your tax liability. It’s an agreement between the taxpayer and the IRS that settles tax debt for less than the full amount owed. For instance, our tax experts at US Tax Shield will work with the IRS on your behalf and provide detailed financial information to prove that you have dealt with economic hardship or that your tax liability is incorrect.
Once the offer is approved by the IRS, you’ll then need to select a payment plan. Fortunately, the IRS allows you to spread out your payments. Here are the two types of payment plans to choose from:
Lump-Sum Cash: With a lump-sum cash payment, you’ll send the IRS an initial payment of 20% of the total offer amount with your OIC application. If the offer is approved, you’ll need to pay the remaining balance in five or fewer payments.
Periodic Payment: Periodic payments allow you to submit your initial payment with your application. Once the initial payment is made, you’ll need to continue to pay the remaining balance in monthly installments while the IRS determines if your offer is approved or not. If you’re approved, make sure to pay each month until it is paid in full.
Installment Agreement
If you can’t pay off your tax debt in one payment, you’ll want to request an installment agreement so you can pay your tax debt in monthly payments. The IRS offers various payment arrangements and installment agreements to help taxpayers eliminate their tax debts. Once again, we can negotiate the lowest possible installment payments by arguing on your behalf that you cannot afford to pay more.
Penalty Abatement
Penalties are assigned on owed taxes as soon as they’re overdue. Unfortunately, these penalties accumulate quickly. If you’re in over your head with tax penalties, you may qualify for penalty abatement.
We’ll work with the IRS to prove that you have reasonable cause or that the IRS made a mistake with your tax liability. Although getting approved for penalty abatement is complex, our attorneys and enrolled agents can help you with this complicated filing process.
Innocent Spouse
Innocent Spouse Relief is designed to relieve a spouse from all IRS tax, interest, and penalties of the other spouse’s misleading or inaccurate tax filings. The following are three different types of innocent spouse relief available for taxpayers who believe the tax liability is not their responsibility:
- Innocent spouse relief
- Separation of liability
- Equitable relief
Each type has different approval requirements. Our tax professionals can help you navigate innocent spouse relief to ensure you’re not held responsible for someone else’s negligence.
Audit Representation
If you get an audit notice from the IRS, it’s crucial to be informed about your right to representation and right to appeal your conflicts with the IRS Office of Appeals. We understand how intimidating an audit from the IRS can be. That’s why our tax team will stand in on your behalf and successfully represent your interests in connection with your tax audit while saving you thousands of dollars.
Liens & Levies
Refusing and neglecting to pay taxes may result in a lien or levy being filed against you. These aggressive actions are filed in order to collect the money you owe without paying the IRS directly.
A tax lien is a legal claim against your property and other assets as security for tax debt. It will show up on your credit report, making it next to impossible to be approved for any type of loan.
Account levies allow the IRS to take money directly from your financial accounts, including checking, savings, or retirement accounts. With professional tax representation, you may be able to have the IRS release the federal tax lien and levies against you.
Wage Garnishment
Another aggressive action the IRS takes if you owe them back taxes is wage garnishment. To collect the amount you owe, the IRS will contact your employer and legally collect back taxes by taking a portion out of your paycheck.
Wage garnishment should be taken seriously. US Tax Shield can work on your behalf to stop wage garnishments and negotiate a favorable tax settlement with the IRS.
Need Tax Resolution? We Can Help
Our Tax Relief Experts at US Tax Shield can provide tax relief services to help taxpayers who have fallen behind on their tax payments or are facing aggressive collection actions by the IRS or state tax agency. If you owe money to the IRS or State, US Tax Shield can help you turn your situation around, whether it’s a personal or business tax debt.
Contact US Tax Shield today at (877) 829-3535 for your free, no obligation consultation.
