Tax Resolution: Solve Your Tax Issues
Tax Resolution refers to a suite of services offered by tax professionals to relieve issues with the IRS. Whether you feel you’re facing undue taxes, or if you’ve received a dreaded notice of impending tax levy, getting these issues settled comes under the term “tax resolution”.
Connecting taxpayers with professionals who can help them with tax resolution is the very purpose of this website.
If you’re struggling with your finances or stress related to the IRS and filing, know that you are not alone. Millions of Americans can relate to your struggle and what you are going through: these folks are not just walking a mile in your shoes — they are standing in them: the typical household has a 30% chance of being audited by the IRS over the course of its lifetime, to say nothing of wage garnishments, tax errors and other issues individuals and businesses face.
You may find yourself in a similar position, know that there are options available to you when it comes to settling your debt with the IRS.
Below our experts have chimed in on methods that allow individuals to effectively pursue tax resolution. That way, you will have the information that you need in order to start making some movement and hopefully some great overall progress when it comes to your taxes and what you owe the IRS. Keep on reading and see!
Methods of Tax Resolution
Let’s cut to the chace: if you need tax resolution, what options are actually on the table?
Installment agreements as one of their most frequently-selected methods of tax resolution. It is exactly what it sounds like: an agreement with the IRS enabling the taxpayer to pay back the amount owed in even monthly installments. The IRS allows a repayment period of up to 6 years. The IRS, upon confirming that your tax debt has been fully paid, will then remove a debtor’s federal tax lien and you will be free to celebrate.
A sub-variant of the installment agreement is the “partial-pay” installment agreement (PPIA). While terms are similar to installment agreements, the difference being that rather than settling for fixed payments for the entire period of repayment, the IRS reviews the taxpayer’s financial situation every two years, adjusting the payment amount as necessary. The monthly payment under this agreement is relatively low, and such arrangements make sense when, unfortunately, the debt cannot reasonably be repaid over the 6-year period permitted under typical installment agreements. If the tax debt is not repaid within the period of the statute of limitations, the debt is cleared, with no further payments necessary.
“Currently Not Collectible”
If the IRS can see that your financial situation is dire, and that given your income, you are unable to cover living expenses, much less pay your tax debts, it may pause collection efforts, realizing nothing can be collected for the time being. However, the IRS will still accumulate penalties and interest on the taxes owed.
While not much of a solution, the ‘currently not collectible’ status is nevertheless a useful reprieve from IRS collection efforts.
This IRS program is essentially a settlement: the IRS recognizes that paying the entire amount owed would be a crippling blow to the individual’s livelihood, and agrees to settle the amount owed for a smaller amount.
It is one of the more optimal solutions, and a tax expert can be instrumental in helping negotiate a compromise resolution with the IRS.