Get Tax Help – Our Top Solutions
Each year, millions of Americans file an income tax return with the federal government, only to find out they still owe money on top of what was taken out of their paychecks month-after-month. or, even worse, they find out their name has been flagged by the IRS.
Rather than panic, know that there are plenty of relief options out there for you, most of which do not include selling your assets or handing over your paychecks to the IRS. But when you have IRS tax problems, it is very important to handle it very carefully and to realize the tax matters are sensitive and require close attention to detail. Otherwise, a slight mistake in the process could cost you in the form of loss of money, time, can get you frustrated and may land you in jail.
If your financial situation is dire and you’re indebted to the IRS, negotiating your taxes with them may be a viable option. Depending on your ability to pay back the requested amount, the IRS may offer the option to pay in multiple installments over a set amount of time. This is typically offered in cases where the indebted party cannot collect the expected funds and pay in one lump sum. In rare cases, the IRS may even opt to forgive your debt completely.
Despite what you may believe, the IRS has become increasingly willing to negotiate with taxpayers. By contacting the IRS directly and openly discussing your financial situation, a representative will be able to explore alternate payment methods and help find one that suits your needs. By recommendation, they may even accept monthly installments over the course of a few years.
It’s important to be completely honest about your finances with the agent working with you, as they can only help if they have all the information. If you’re unable to make a payment, the IRS has the legal authority to garnish your wages, reclaim your property, and even seize your bank accounts.
In cases where you feel uncomfortable negotiating with the IRS, it may be valuable to seek legal representation from a certified tax attorney. As we’ll discuss below, they can give you an edge when it comes to legal terminology, as well the inner workings of the tax system.
Being able to read and comprehend legal talk and documentation is a rare skill unless you’ve had proper training. Likewise, navigating the legal system in the hopes of getting a fair tax settlement can seem impossible without help, and tax attorney does exactly that. Tax attorneys specialize in the sections of law that pertain to taxes and will be able to guide you through the confusing parts of a negotiation with the IRS.
If you find yourself incapable of paying your taxes, or unable to come to an agreement with an IRS representative, a tax attorney will be able to open doors you may not have been aware of. They can handle your documents, respond to audits and collection notices, and communicate with an IRS agent on your behalf. Additionally, they can help you dispute any existing steps the IRS has taken in securing your property and bank accounts.
Alternatively, a tax accountant could prove to be a useful tool in your negotiations with the IRS. Tax accountants don’t represent you legally but can sort out the actual filing and amending of your tax returns. It’s important to file your tax return, even if its late, and if you aren’t confident in your ability to file an accurate one, a tax accountant can do it for you. They will personally sort through all your tax documents and calculate deductions in the hopes of giving the IRS the most accurate representation of your financial standing.
Talk to an Accountant If You Have a Complex Return
While the tax code may be confusing, the good news is that you don’t have to file a return alone. If you run a business, have investment income or don’t want to make a mistake on your Form 1040, it is possible to have an accountant do your taxes for you.
Those who turn to a professional for help should work with a CPA or an enrolled agent as they have formal educations as it relates to the tax code. Enrolled agents have been certified to help taxpayers in the event that are audited, which means they understand that tax code well enough to help with even the most complicated returns.
Understanding income tax is a lot easier than you may imagine. All you have to do is figure out how much you made in the past year, account for deductions and credits and use tax brackets to determine how much of your income goes to the government. If you have any questions or concerns, there are plenty of resources available to help ensure that you file a timely and accurate return each year.