Tax resolution and tax relief are services meant to assist taxpayers in navigating the complex process of settling back tax issues. Taxpayers often seek assistance after they have neglected the situation for so long that the IRS or state has lost patience and chosen to reclaim unpaid taxes forcefully. This might take the shape of a tax lien or a bank levy on your property. The IRS’s most typical means of seizing your assets is a bank levy, in which the government applies a levy on the taxpayer’s bank and demands that the taxes owing be paid over.
What are the signals that are charged?
Before any charge may be imposed, a taxpayer must be notified of the action taken against them. The IRS will make an effort to reach the taxpayer through written notifications. These notifications may be challenged or appealed in order to prevent the levy from taking effect. And, if the levy occurs and causes you financial difficulty, or if you engage in an installment arrangement (payment plan), you may have it released before the funds are withdrawn from your account. If such warnings are disregarded, the matter may proceed to “collections,” in which the taxpayer may receive phone calls or in-person visits from the agent or officer appointed.
Rather than ignoring these messages, it is always preferable to speak with the taxation authorities and collaborate to address the problem.
How can tax resolution firms assist?
When you hire a tax resolution company, you are employing them to examine the full of your tax situation and speak on your or your company’s behalf. A skilled tax resolution professional will understand what is permissible on financial disclosure and will be able to examine your financial data to decide which resolution you qualify for.
Many taxpayers may be eligible solely for an installment arrangement. While paying past taxes on top of current taxes may seem dreadful, the fact is that your agent will be able to negotiate the lowest feasible monthly payments on your behalf by demonstrating that you simply cannot afford to pay more. The amount of an installment agreement might be the difference between keeping a company running and closing its doors.
What are the fees for tax settlement services?
Tax resolution firms often function in two ways.
The first method is to link you with an unlicensed and unskilled salesman who will offer an investigation phase in which you may spend thousands of dollars merely to investigate what needs to be done. Following the inquiry, you are required to pay an extra cost to resolve the problem.
The second (and preferable) way is to have an initial consultation with a professional authorized to represent clients before paying any money to the IRS. The qualified consultant will ask you questions about your situation and use the information you give to determine what needs to be done. From there, expect to pay at least a thousand dollars for the most basic resolution techniques and tens of thousands of dollars for the most complicated situations with liabilities in the millions of dollars. Before speaking with any tax resolution professional, ensure that the person you talk with is licensed to practice before the IRS.
