subject: Tax Debt Relief – How To Find Legitimate Help Resolving Tax Debt [print this page] Tax Debt Relief How To Find Legitimate Help Resolving Tax Debt
Finding the appropriate process or the right tax professional is important when it comes to resolving back taxes. Back taxes should be settled as ASAP to prevent any future penalties, interest, tax liens and tax levies. The earlier you handle your tax problem the better since additional interest is accrued with each passing day on back taxes. Just know, there are options out there for every person to resolve their taxes owed with the Internal Revenue Service no matter how bad their monetary situation is. Below are three steps recommended when you tax debts.
Check your return that you filed and double check to make sure you didn't make any mistakes and miss any deductions. If you find you missed a big deduction, you can submit an amended return and then find the new tax amount owed. If everything seems to be OK with the tax return you filed and you just can't afford to pay the lump sum amount of tax owed, go to the next item listed.
Depending upon your tax position and amount of taxes owed, determine if you can resolve the tax liability by yourself. Generally it is fairly simple to setup an arrangement with the IRS if you owe less than $10,000. when you cannot pay the tax amount in full, the IRS will want you to setup an installment agreement. With this form of agreement you pay back the taxdebt in smaller increment monthly installments. The IRS does offer other forms of settling tax debts, some allow you to settle for much less than the total amount owed, it is highly suggested you use a tax professional to assist with the other forms of settlement. Many times tax professionals offer free meetings to determine if you are a likely to receive other forms of settlement. If you owe more than $10K or you still cannot make the payments with an installment agreement then move on to number 3.
If you owe over $10K, it is imperative that you hire a tax professional. There are 3 main types of tax experts that can help resolve tax debts, CPA, Tax Attorney, and an enrolled agent. All of these tax professionals do similar work, but some may be better for different types of situations. When hiring a professional you should always consult with more than one. Most tax resolution companies will offer a free consultation. You will receive your options, likely outcome and estimated price for the service.
When it comes to dealing with IRS back taxes, you will want to settle them as quickly as possible. Everyone has heard the horror stories of people losing homes, losing assets, getting wages garnished etc. The IRS has more powerful collection mechanisms than any other collection agency in the United States. The good news is that they do give you fair notice and they are willing to work with you. Not taking action is the worst thing you can do, the sooner action is taken the better.
