What Is Tax Resolution?

Do you owe the IRS money that you can’t afford to pay? Have you ever asked yourself, ‘What is tax resolution?’ Platinum Tax Defenders weighs in on options for paying back taxes even when you can’t afford to. Taxes: everyone has to file them and, sometimes, pay them. However, what is tax resolution? You may have heard the term “tax resolution” from someone who owes the IRS money they can’t afford to pay. Tax relief includes many services to settle back taxes. In summary, tax resolution is a service in which a tax resolution specialist helps a client settle back taxes. If the tax resolution specialist does a good job, the taxpayer can significantly reduce their debt.  Are you still asking yourself, “But what is tax resolution?” Read on for the different types of tax resolution programs that the IRS offers.

What Is Tax Resolution? What Kind Of Tax Resolution Programs Does The IRS Provide?

A tax relief specialist can walk you through the various types of tax resolution programs that exist. The tax relief program that may be right for you may not be right for everyone. A tax relief specialist will be able to determine the best tax relief program for you based on your situation. The total amount you owe and the amount you’re able to pay will identify your tax relief result. Below are the different types of tax relief programs that the IRS offers.

Offer in Compromise

What is tax resolution when we’re talking about Offer in Compromise? An Offer in Compromise is an option the IRS offers that allows a taxpayer to settle their debt for less. This tax resolution option is excellent for a taxpayer because it provides them with a fresh start with the IRS. An Offer in Compromise allows a taxpayer to reach a workable payment agreement with the IRS. There are three requirements for taxpayers to submit an Offer in Compromise:

–    Doubt as collectability – the IRS determines the taxpayers is financially unable to pay their full tax debt.

–    Liability doubt – the IRS assesses the tax debt in error, or the amount of debt reported by the IRS is incorrect. 

–    Effective tax administration – when the taxpayer can pay their debt; however, they cannot pay in full. In this case, paying in full would cause the taxpayer economic hardship.

Installment Agreement

What is tax resolution when we’re talking about an Installment Agreement? 

For those who cannot pay their tax debt in full, the IRS may agree to an Installment Agreement. With an Installment Agreement, the taxpayer settles back taxes gradually in monthly installments. The IRS can often be a complicated entity with which to work. For that reason, whenever you’re attempting to negotiate a tax resolution plan, a tax relief specialist can help. The best way to get a positive outcome to settling back taxes is to work with a tax relief specialist. Installment plans can be very viable options for both the IRS and the taxpayer. There are usually penalties and interest that add to Installment Agreements, but it’s a successful way to settle back taxes. A tax resolution specialist can help you come up with the right monthly payment estimate to pay back taxes.

Penalty Abatement

What is tax resolution when it comes to penalty abatement? When the IRS approves your penalty abatement, they will permanently remove all obligation to pay penalties on taxes. However, the IRS does not hand out penalty abatement privileges to just anyone. If it’s your first time with the IRS, they may grant you a first-time abatement. If you always settle back taxes on time and are in good standing with the IRS, you will likely qualify. However, if the IRS rejects your request for penalty abatement, you will have to persuade the IRS to reconsider. Whenever you’re negotiating with the IRS, it’s always advisable to seek the assistance of a tax resolution specialist. 

Innocent Spouse Relief

What is tax resolution when it comes to Innocent Spouse Relief? You may qualify for Innocent Spouse Relief if your current or former spouse makes a severe mistake on their tax returns. These types of errors may include:

–    Your spouse or ex-spouse fails to report income

–    A spouse or ex-spouse reports income improperly or claims improper deductions or credits

Before filing for Innocent Spouse Relief, you should consult with a tax resolution professional. A tax resolution specialist can help you identify the difference between an Innocent Spouse and an Injured spouse. Generally, an Innocent Spouse is one who marries someone who, on their joint tax return, deliberately likes to the government. You might qualify for Innocent Spouse Relief if you weren’t aware of the false reporting at the time. What is tax resolution, and how does it differ for married couples and singles? When you marry someone, the majority of your life becomes one, including your financial life. If your spouse is doing something that could give you future tax trouble, you should not be held responsible. A tax resolution specialist can help you navigate the sometimes-complicated process of applying for Innocent Spouse Relief.

IRS Collections Actions

What is tax resolution when it comes to IRS collections actions? The IRS can take several steps to settle back taxes if you don’t pay. A few of the collections responses the IRS may receive include:

–    Wage garnishment – withholding a portion of your paycheck each month

–    Tax liens – the IRS takes control of your property or assets as cash until you settle back taxes.

–    Bank levies – the IRS can claim power of valuables such as your home, vehicle, or business. These items are collected as value until you settle back taxes.

What is Tax Resolution and How Can Platinum Tax Defenders can Help?

If you have ever looked at your tax bill and wondered, “What is tax resolution?” – Platinum Tax Defenders has your answer. We have experience helping clients and businesses settle back taxes. Our team of tax relief specialists, CPAs, enrolled agents, and tax attorneys have been in business for multiple decades. When you come to us, we’ll answer all of your questions about a tax relief . We know that the IRS’ goal is to get its money back. We’ll help you pay them back, but less. Call Platinum Tax Defenders today for a free consultation.

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    I received a letter from the IRS and it says that I didn’t file my taxes. In order to get some assistance, I found Platinum Tax Defenders! The staff took time on the phone with me to really understand my situation also my needs. The staff was friendly and helpful. I highly recommend Platinum Tax Defenders!!!

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