Tax Resolution
Tax resolution refers to the process of resolving tax-related issues with the Internal Revenue Service (IRS) or state tax agencies. This can include things like negotiating payment plans for back taxes, resolving disputes over the amount of taxes owed, or seeking relief for taxpayers who are unable to pay their taxes due to financial hardship.
Is a Tax Resolution Firm The Answer?
There are several types of tax resolution services available, including tax preparation, tax planning, and representation before the IRS. It is important to choose a tax resolution provider that is knowledgeable and experienced in these areas, as well as being trustworthy and ethical.
OCCAM member tax resolution providers are committed to helping consumers navigate the complex world of tax resolution. They understand that taxes can be a daunting and stressful subject, and they strive to provide personalized and comprehensive support to their clients.
OCCAM member tax resolution providers are committed to helping consumers navigate the complex world of tax resolution. They understand that taxes can be a daunting and stressful subject, and they strive to provide personalized and comprehensive support to their clients.
In addition to providing tax resolution services, OCCAM members are also skilled in helping consumers with offers in compromise. An offer in compromise is a settlement agreement between a taxpayer and the Internal Revenue Service (IRS) that allows a taxpayer to pay less than the full amount owed. It is a viable option for individuals or businesses who cannot pay their full tax liability but may be able to pay a portion of it. OCCAM member tax resolution professionals, including enrolled agents, are trained to negotiate with the IRS on behalf of the taxpayer to reach a mutually beneficial agreement. Enrolled agents are federally licensed tax professionals who are authorized to represent taxpayers before the IRS in all matters, including offers in compromise. OCCAM members with enrolled agent status have passed a rigorous exam and are held to high ethical standards, ensuring that you receive the highest level of expertise and professionalism when seeking tax resolution services.
Whether you are dealing with back taxes, facing an audit, or just need guidance on how to properly file your taxes, OCCAM member tax resolution providers have the skills and expertise to help. They will work with you to develop a customized plan to resolve your tax issues and help you get back on track.
In addition to their professional skills and experience, OCCAM member tax resolution providers are also committed to transparency and honesty. They will keep you informed every step of the way and work with you to find the best solution for your specific tax situation.
If you are facing tax-related issues and need help, don’t hesitate to reach out to an OCCAM member tax resolution provider. They are here to help you get the support and guidance you need to resolve your tax issues and move forward with confidence.
According to the IRS, you can apply for an Installment Agreement, OIC, or penalty or interest abatement without the help of a third party. If you prefer third-party assistance in negotiating with the IRS, only certain tax professionals — Enrolled Agents (federally-authorized tax practitioners who can represent taxpayers before all administrative levels of the IRS), Certified Public Accountants (CPAs), and attorneys — have the authority to represent you . Their services should involve a face to face meeting where they explain your options and their fee structure. In any scenario, you need to be sure that the firm you are hiring is qualified and reputable. OCCAM can help you.
The FTC’s website says, “If you owe taxes, but can’t pay the IRS in full, consider submitting an Installment Agreement Request (Form 9465) with your return. In certain situations, the IRS can’t deny a request for an installment agreement if you owe less than $10,000. That said, you should still pay as much as you can with the return. You will be charged interest and possibly a late payment penalty on any tax not paid by its due date, even if your request for an installment agreement is approved. You can avoid IRS collection notices and actions, like a Notice of Federal Tax Lien or an IRS levy, by establishing an installment agreement upfront and making your installment payments.
If you owe back taxes, there are several IRS tax relief programs to help, including the agency’s Fresh Start initiative:
- An Installment Agreement is generally available to people who can’t pay their tax debt in full at one time. The program allows people to make smaller monthly payments until the entire debt is satisfied.
- Under its Fresh Start initiative, the IRS raised the threshold for streamlined installment agreements from $25,000 to $50,000 in tax debt, and the maximum repayment term from five to six years. Taxpayers who owe less than $50,000 may apply online with the IRS and don’t have to complete an IRS Collection Information Statement (Form 433-A, 433-B or Form 433-F).
- An Offer in Compromise (OIC) lets taxpayers permanently settle their tax debt for less than the amount they owe. The OIC is an important tool to help people in limited circumstances; taxpayers are eligible only after other payment options have been exhausted.
- Under its Fresh Start initiative, the IRS expanded the OIC program to cover a larger group of struggling taxpayers. However, the IRS will not accept an offer if it believes the liability can be paid in full as a lump sum or through an installment agreement. The IRS offers guidance on choosing a tax professional for an OIC on its website.
In very limited circumstances, the IRS may offer penalty abatement to people who haven’t paid their taxes because of a special hardship. If the taxpayer meets very narrow criteria, the IRS may agree to forgive the penalties. Interest abatement is even more limited and rarely provided. While these programs may eliminate penalties or interest, you still owe the taxes. If a tax relief company promises it can eliminate interest and/or penalties for you, be wary: there is limited relief available, no matter who represents you before IRS Collections. Their services should include a face-to-face meeting with you where they explain your options and their fee structure.”
In many cases it is advisable to seek out competent, professional help when dealing with the IRS. Reputable companies exist that can evaluate your situation, recommend the best course of action and represent you before the IRS. When dealing with any outstanding debt, it is best to know your rights and have a firm grasp on your options before addressing it. If you are facing an audit, owe back taxes or haven’t filed, a professional tax resolution firm may be the fastest, most effective way to go. Like any other debt relief service, it is extremely important that you know exactly who you are working with and know that they are not just reputable, but competent. Most companies in in this space require special licensing, especially if they are representing you before the IRS. Many of the firms are Certified Pulic Accountants or Enrolled Agents of the IRS. If you owe taxes and need help, make sure they have been thoroughly vetted through OCCAM and are the “real deal”. These services can be expensive and you cannot afford to be duped into believing they can help if they aren’t truly reputable.
If you are asked to make an upfront payment for representation in a tax collection matter, carefully review the refund policy before signing any agreement. Also check to see if a default billing rate — a flat rate applied to the work of all employees at a firm, not only the tax professionals — will apply if you cancel the company’s services. A high default billing rate may quickly use up a large portion of your upfront payment, even early in the representation.
Let OCCAM guide you to a reputable provider that can answer your questions and will give you straight answers on your best path forward.