The Most Frequently Asked Questions About Tax Resolution
What is tax resolution, and who can benefit from it? Keep reading to know more about tax resolution services and how these can help you or your business.
Keyword(s): tax resolution
In 2020, Americans owed the IRS more than $114 billion.
Many people get into debt, and then struggle to get out of it. This can happen for a host of reasons, and the results are never good. For those who fall into this situation, there are various potential ways to get back out, with one such method being tax resolution.
You may not be too sure what tax resolution is or how it works. If so, keep reading for some of the most frequently asked questions about it.
What Is Tax Resolution?
Tax resolution is a program that the IRS (Inland Revenue Service) created to help those in debt. You can work with the IRS, as well as tax professionals, to find a solution when struggling to pay back the money that you owe.
This isn’t always due to a lack of funds. Sometimes problems can occur if the IRS believes you’ve underreported your income, or if you haven’t properly filed your taxes for multiple years.
You might use tax resolution to help with various situations such as audit representation, transcript protest, non-collectible debt, tax penalties, and more.
How Do Tax Resolution Companies Work?
Companies like Advanced Tax Team offer tax resolution, among other services. We communicate with federal and state tax agencies to resolve your settlement in the best way possible. We’ll work with you to make the process as simple as possible to reduce stress and difficulty.
Can I File for Settlement Myself?
If you want to, you’re free to handle your tax settlement yourself. While some people choose this option, it can often make things worse. The IRS goes through all cases submitted to them in detail, and any mistakes can cause complications.
If there are errors with your settlement, the IRS might reject your application completely. It’s generally a much better idea to go with professional tax resolution services. Not only will this ensure things are done right, but it will also be much faster and could save you money.
Can I Go Through My Attorney or CPA?
If you don’t want to go through a tax resolution service, but you still want some assistance, another option is going through your tax attorney. The issue here is that they still won’t have as much experience as a professional service.
In most cases, a tax advisor will only deal with one or two settlements per year. They may understand tax laws better than you, but there’s still a chance that they’ll make some errors. This can lead to the same sort of problems that you might encounter when choosing to deal with your settlement yourself.
The tax specialists at Advanced Tax Team have years of experience in tax resolution. As such, we’re prepared to handle any case and fully understand how things need to be done to ensure there are no mistakes.
How Long Does the Process Take?
Unfortunately, there’s no definitive answer to this as it varies from case to case. Some can be done in just a month, while others may take a year. At Advanced Tax Team, we’ll work to get your settlement resolved as quickly as possible.
How Much Will I Save?
Much like the time scale, this varies between different cases. There’s a range of factors that can affect how much you’ll save, such as:
- Your age
- Your expenses
- Your total assets
- The number of people in your household
- Your income
After a consultation with our team, we’ll be able to give you a better idea of the savings you can expect.
How Much Will It Cost?
Again, this is on a case-by-case basis, so it will depend on your personal situation. The best thing to do is get in touch with our team. After discussing the specifics of your case, we’ll be able to start estimating the overall cost.
How Do I know if I’m Eligible?
Unfortunately, some people may not qualify for a settlement. It can depend on several variables such as your income, your expenses, your tax liability, and more, so it will come down to your specific circumstances. After discussing the details of your situation with a member of our team, we’ll be able to determine whether or not you’re eligible for a settlement.
Who Can I Ask if I Have More Questions?
Your tax attorney may be able to provide you with some assistance, but as mentioned, they might lack the experience to give detailed, accurate information. You can reach out to our team at any time and we’ll be happy to help with any specific questions you might have.
What Tax Resolution Options Are There?
There’s a range of options when it comes to your tax resolution. Some of the most common choices are:
- Offer in Confidence
- Lien Removal
- Installment Agreement
- Currently Non-Collectible
- Levy Release
- Penalty Abatement
The option that would be most beneficial for you depends on your situation. Our team can advise you which option may be most suitable for you to go with.
Will an Offer in Compromise Impact My Credit?
An Offer in Compromise can reduce the amount you need to pay back to the IRS. In some cases, the amount is significantly lower when used correctly. Just bear in mind that some cases are eligible for greater savings than others.
By working through your tax resolution with Advanced Tax Team, we’ll be able to help remove the IRS lien from your credit. This won’t lower your credit at all, and will only make your situation better.
Help With Your Tax Resolution
After reading the answers to the questions above, you probably have a better idea of whether or not tax resolution is right for you. If you think that it is, or if you have further questions, Advanced Tax Team can help.
On top of tax resolution, we can also help with things like tax planning, tax prep, and bookkeeping. Click here to contact us today.