Resolution tax services are a lifeline in complex tax situations. They can help you get out of debt and avoid legal action from the IRS.
According to the US Census Bureau, the average per-capita tax burden in Illinois is around $8,148. That’s the ninth most expensive state in the nation, leaving many residents in need of relief and resolution services.
What is a Tax Resolution Service?
Tax resolution involves helping clients handle IRS problems. These could include:
- Collections at high interest rates
- Liens
- Levies
- Wage garnishments
Tax resolution professionals work with the IRS one-on-one. They know all the tax laws and how to get the best solution for you.
A tax resolution expert can use this knowledge to provide a variety of IRS tax relief solutions, such as setting up a payment plan. They can also help reduce your debt. They can even help stop unwarranted garnishments, liens, and levies.
When to Seek Tax Resolution Services
Knowing when you need resolution tax services can be just as important as figuring out which services you need.
Get help if your back taxes exceed $50,000. It’s even more important if you’re experiencing financial hardship.
Current or past action from the IRS towards you requires a steady hand. Have prior returns been audited? Is a levy putting your wages or property at risk?
This is where tax resolution experts will deal with the IRS for you and come up with the best possible solution.
What Are the Best Resolution Tax Services?
Tax resolution experts can provide a variety of services, but the best ones focus on the most common issues. They help navigate IRS actions and help pay down debt.
Audit and Criminal Representation
You don’t have to face an audit alone. A tax resolution specialist will get the required documentation and attend meetings for you.
You also don’t have to worry about criminal cases involving accusations of tax fraud. Specialized attorneys bolster your defense.
Innocent Spouse Relief
Has your spouse committed tax fraud without your knowledge? Do they have unpaid taxes? Innocent spouse relief ensures you aren’t responsible for the entire burden.
Levy Release, Lien, and Wage Garnishment Removals
Liens are legal claims against property for unpaid taxes. Professionals can help remove them. They can also start a Collections Due Process hearing if the lien was filed in error.
Levies are the actual seizure of the property. An IRS bank levy/garnishment attorney can negotiate for a levy release to stop them.
Property isn’t the only thing the IRS can take to deal with unpaid taxes. They can also take part of your paycheck. You can stop this with wage garnishment removal.
Offer In Compromise
An offer in compromise is a method of settling your tax debt for less than you owe. The payment terms are affected by several factors. These include your:
- Income
- Assets
- Expenses
- Ability to pay
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Penalty Abatement or Reasonable Cause
An IRS penalty abatement temporarily halts your tax liability. In order to establish penalty abatement, you need a history of paying taxes on time and no penalties in the last three years. It can also apply to multiple types of taxes.
An abatement prevents you from facing failure-to-pay and failure-to-file penalties. However, it doesn’t remove your tax debt.
Reasonable cause works similarly. However, you need a specific reason for being unable to pay, such as:
- Fire
- Natural disaster
- Illness
Setting Up Payment Plans
Setting up a payment plan is a simple but effective tax debt resolution. A professional can help negotiate a schedule you can afford.
IRS Tax Discharge and Expiration
IRS tax discharge and expiration removes assets from liens so you can sell them to cover debts. Bankruptcy is another option for old debts. The IRS must also stop collection efforts after 10 years.
Do Tax Resolution Services Really Work?
Tax resolution services work when used correctly.
Their expert knowledge of taxes and the IRS can help prevent legal issues and get you out of them. They’ll also help ensure you pay less and save you money in back taxes.
Finding Tax Resolution Experts
When looking for tax resolution experts, start by comparing their services. Find one that offers the service you need and has experience in it.
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You should also check your eligibility. Many experts require a minimum amount of debt before they’ll take you on as a client.
Professional tax services require attorneys and professionals with credentials such as Enrolled Agent (EA) and Certified Public Accountant (CPA).
Get an overview of the pricing model. It should have a clear fee structure. Contact customer support before you sign the contract.
Frequently Asked Questions
What Debts Cannot Be Erased?
According to the Fair Credit Reporting Act, most debts get removed from your credit report after seven years. You still owe them, but they don’t affect your credit score. Filing for bankruptcy can also help erase most debts.
This doesn’t apply to debts considered essential to general welfare or backed by the government. These non-erasable debts include:
- Child support/alimony
- Student loans
- Recent taxes
- Government fines
- DUI-related fines
- Undisclosed debts
- Fraud-related debts
- Willful and malicious injury debt
What is the IRS Seven-Year Rule?
The IRS seven-year rule is the recommended period to keep tax documents. This includes:
- W2s
- 1099s
- Receipts
- Bank statements
Keeping documents for at least seven years helps prevent tax issues, especially audits. The standard window for audits is three years, but the IRS has up to six years to report underreported taxes. There’s also a period of seven years to file a claim over bad deductions or worthless securities. Seven years covers this entire period, making it a safe recommendation.
It’s best to keep tax returns indefinitely. You can also keep other records indefinitely if no return or a fraudulent return is filed.
Get Tax Resolution Today
Resolution tax services solve issues such as audits, liens, or wage garnishments. They can also create payment plans or pause taxes with abatements.
Tax Law Offices has a team of experienced IRS and business tax attorneys based in Naperville, IL. We help clients navigate issues such as complex audits, aggressive collections, and tax debt over $50,000. We can also help them reduce payroll and trust fund tax liability.
Having this expertise on your side now makes tax issues less of a concern. Contact us to get the best team on your side today.