Are you looking to find the Best Tax Resolution in Sunrise FL? Need IRS Tax Crises Relief in Sunrise? Having checked all the “key points” in selecting the best tax resolution service in Sunrise Florida, we are pleased to present our choice is to be determined::
What is “Tax Resolution”?
Tax Resolution includes many different services and goes by various names (IRS Representation, Tax Problem Recovery, Tax Resolution, Tax Controversy) but in summary, Tax Resolution is a service in which you help a client resolve his or her open debt with the IRS in a way that minimizes the debt as much as possible.
Do Tax Relief Companies Really Work?
Tax relief companies endeavor to help taxpayers lower their debt, guide audits, and help arrange payment agreements with the IRS. Such companies may even be able to stop potential penalties such as wage garnishments.
What are the most common tax resolution outcomes?
Under an installment agreement, the taxpayer agrees to pay the entire amount of their debt in monthly installments over an extended period of up to six years. This method allows the taxpayer to pay in small, manageable amounts so that the debt is not overwhelming. Once the tax debt is paid in full, the IRS will release the federal tax lien imposed on the taxpayer.
Partial Pay Installment Agreement
A partial pay installment agreement is the same as a regular installment agreement, except that it allows taxpayers to pay lower monthly payments than they would in a conventional installment agreement. If the taxpayer’s financial situation does not change, then they will continue to pay reduced monthly payments until the expiration of the statute of limitations (typically, for ten years). After the statute expires, the IRS can no longer collect on the debt, and the taxpayer will be free of their monthly tax payments. If you do qualify, you will be subject to a thorough financial review every two years. Based on the IRS’ findings, it has the discretion to increase your payments if you have had an increase in income.
Currently Not Collectible
A taxpayer can have all collection activities cease if they are under “Currently Not Collectible” status. This status is only available for taxpayers whose expenses exceed their income. The IRS will look at usual national standards to determine if the taxpayer can afford their basic living expenses.
Innocent spouse relief can be used when one spouse of a joint return is assessed additional tax based on the erroneous or potentially fraudulent filing by the other spouse. This method can be extremely complex and usually demands the assistance of a tax attorney, but can be a viable option depending on the circumstances.
Offer in Compromise
An “OIC” (Offer in Compromise) allows a taxpayer to pay a smaller amount instead of the entire tax debt. During the approval process, the IRS investigates a taxpayer’s financial situation and compares the taxpayer’s entire tax debt to their current financial status. If accepted into the OIC program, the taxpayer will be subject to continuous monitoring of their economic situation to verify that they cannot afford to make larger tax payments.
While there may be other “solutions,” these remain the most popular and desirable.
Make sure that the tax resolution service you select is familiar with all the methods outlined above and can demonstrate successful past resolutions for their clients.