Understanding Common Tax Problems And Their Solutions

Tax problems can be a source of stress and financial strain for individuals and businesses alike. Whether you’ve missed filing deadlines, received a notice from the IRS, or are grappling with mounting tax debt, it’s crucial to address these issues promptly. In this article, we’ll discuss some common tax problems and the solutions available to help you regain control of your financial situation with the assistance of a tax resolution company.

Unfiled Tax Returns

One of the most common tax problems individuals face is failing to file their tax returns. This can lead to penalties and interest accruing over time. The solution? Contact a tax resolution company that specializes in helping clients catch up on unfiled returns. They can guide you through the process of gathering necessary documents and filing your returns to minimize penalties.

Tax Debt And IRS Notices

Receiving a notice from the IRS about unpaid taxes can be daunting. The first step is not to panic but to seek professional help. A tax resolution company can negotiate with the IRS on your behalf to establish a payment plan, such as an installment agreement, that fits your financial situation. They will also help you understand the details of the notice and ensure you take appropriate action.

Audits And Examinations

Facing an IRS audit or examination can be anxiety-inducing. Tax resolution experts can provide representation during the audit process, ensuring your rights are protected and helping you navigate the complex audit procedures. Their knowledge can resolve problems and supply necessary supporting evidence, which can have a big impact on the audit’s result.

Tax Liens

Your credit score and your capacity to obtain loans or credit can be negatively impacted by tax liens. A tax resolution company can assist in negotiating the release of tax liens by arranging payment plans or settling your tax debt through an Offer in Compromise (OIC) with the IRS. They will work to find a solution that not only releases the lien but also addresses the underlying tax debt.

Wage Garnishments

When the IRS places a wage garnishment on your income, it can leave you with a reduced paycheck and financial hardship. A tax resolution company can intervene, negotiating with the IRS to release the garnishment and establish an alternative payment plan that is more manageable for you. They will also help you communicate with your employer to ensure the garnishment is lifted promptly.

Bank Levies

Having your bank account levied by the IRS can be financially crippling. Seeking the help of a tax resolution company is crucial in this situation. They can work to remove the levy and find a solution that allows you to address your tax debt without emptying your bank account. Additionally, they will guide you in complying with the IRS’s requirements to release the levy.

Penalties And Interest

Accumulating penalties and interest on unpaid taxes can make your tax debt grow exponentially. A tax resolution company can negotiate with the IRS to reduce or eliminate certain penalties and interest charges, helping you save money and expedite your path to resolution. They will assess your financial status and tax history to see if you qualify for interest reduction or penalty abatement, and they will make a compelling argument to the IRS on your behalf.

Conclusion

In the face of common tax problems, seeking the expertise of a tax resolution company is often the most effective way to find a solution that suits your unique financial circumstances. These professionals have the knowledge and experience to guide you through the intricacies of tax resolution, whether you’re dealing with unfiled returns, tax debt, audits, liens, wage garnishments, bank levies, or penalties and interest.

September 25, 2023 Jessica