Tax Resolution Company

Tax Resolution Company

Tax resolution company use television, radio, and the internet to assist taxpayers in financial trouble. If you pay an upfront fee that could be hundreds of dollars, they claim that they can cut down or reduce your tax liabilities and stop the collection of back taxes by submitting applications to legal IRS assistance programs. In reality, most taxpayers aren’t eligible to participate in the schemes these scammers promote. Their companies do not settle the tax debt, and, in many cases, they don’t even submit the required documents to the IRS to request to participate in these programs discussed. To make matters worse, some of these businesses don’t offer refunds and can leave taxpayers even more in debt.

A few taxpayers who complained before the Federal Trade Commission (FTC) stated that having signed up to a few of these firms in exchange for thousands in upfront costs, they were able to take more of their cash by creating unauthorized charges on their credit cards or by taking withdrawals from their accounts at banks. We will discuss more tax resolution company

If you have a tax bill to pay and aren’t sure how you’re paying the amount and aren’t sure how to pay it, the FTC, the country’s Consumer Protection Agency, advises you to don’t panic; just take your breath and look at your alternatives. If you’re having trouble paying bills, it’s more beneficial to figure out a payment plan with the creditor on your own rather than engage a third party to negotiate a solution for you. This is also true if you have a debt to the IRS or the state comptroller.

IRS Help for Taxpayers

Since we are discussing a tax resolution company. If you owe tax, however, you’re unable to pay IRS completely, you might consider filing your Installment Agreement Request (Form 9465) along with your tax return. In certain circumstances, there are certain circumstances where the IRS will not refuse an application for an installment agreement even if you have a debt of under $10,000. But, you should make sure to pay as much as you can on your tax return. You’ll be charged interest and maybe a penalty for late payments for any tax that is not paid by the due date, regardless of whether the application for an installment agreement is granted. You can stay clear of IRS collections notices and other actions such as an IRS notice of federal tax lien, or an IRS levy, by signing an installment agreement in advance and making the installments.

If you are owed back taxes, There are a variety of IRS tax-relief programs that can assist, including the IRS’s Fresh Start initiative:

An Installment Agreement is usually for those unable to pay off their tax debt all at once. It allows individuals to make smaller payments monthly until the debt is settled.

In its Fresh Start initiative, the IRS increased the minimum threshold for streamlined installment agreements between $25,000 and $50,000 of tax debt and extended the maximum term of repayment from five to six years. Taxpayers with debts less than $50,000 can make an online application to the IRS and do not need to fill out the IRS collection information statement (Form 433-A or 433B, or 433-F).

The Offer In Compromise (OIC) allows taxpayers to pay off their tax debts less than they have to pay. The OIC is a crucial instrument to assist people with restricted circumstances. Taxpayers can only avail of it after all the other payment options are exhausted.

In the Fresh Start initiative, the IRS extended the OIC program to include an increased number of struggling taxpayers. However, it is important to note that the IRS will not consider any offer when it believes that the tax liability can be paid in full in an unpaid lump sum or via the installment arrangement. The IRS provides advice on choosing an accountant for OIC OIC via its website.

In extremely limited situations in very limited circumstances, the IRS can grant penalties reduction to those who haven’t paid their tax due to a circumstance. The IRS might be willing to waive the penalty if the taxpayer can meet specific and very strict requirements. Interest abatement is more restricted and is rarely offered. Although these programs can remove interest or penalties, you are still responsible for taxes. When a tax-relief firm promises to reduce penalty and interest on your behalf, beware that only a few relief options are available, no matter who represents you in IRS Collections. Their services should consist of an appointment with you in person that will discuss your options and their pricing structure.

By the IRS regulations, you can request the IRS to grant you an Installment Agreement, OIC, or a penalty or interest abatement with no assistance of a third party. Suppose you prefer third-party assistance in negotiating with the IRS. In that case, only certain tax professionals — Enrolled Agents (federally-authorized tax practitioners who can represent taxpayers before all administrative levels of the IRS), Certified Public Accountants (CPAs), and attorneys — have the authority to represent you. Their assistance should be based on an in-person meeting in which they will explain your options and their fee cost structure. We will discuss more about tax resolution company

If you’re asked to pay in advance to represent yourself in a tax collection issue, review the refund policy before signing any contract. Be sure to check whether a default rate which is a flat rate applicable to everyone employed by a company, including tax experts — will be applicable if you choose to terminate the company’s service. A high default bill rate could quickly consume most of your initial payment even before the representation has begun.

Reach out to the Taxpayer Advocate Service, an independent agency inside the IRS, and offers free assistance for tax issues you’ve been unable to solve on your own or if your issues are causing financial problems for your company or you or you’re facing the immediate threat of a negative tax collection actions from the IRS. Contact them at 1-877-777-478 or visit

State Tax Relief Programs

Since we are discussing tax resolution company. The process of tax settlements between states is remarkable compared to the procedure used by the IRS. However, the process varies between states. In certain states, for example, penalties for taxpayers are waived; however, interest isn’t. Other states have a situation where interest may be eliminated; however, penalties aren’t. In certain states, the legitimate tax debt cannot be reduced. For more information, call your state’s comptroller. To view a state-by-state list, visit the National Association of State Auditors, Comptrollers, and Treasurers (NASACT) at

Issues are encountered with Tax Relief Companies and Representatives.

The IRS Office of Professional Responsibility investigates questionable practices within the tax debt resolution business. Contact the IRS on Form 14157 Complaint Tax Return Preparer. This IRS Return Preparer Office will examine complaints and, when appropriate, forward this to the IRS Office of Professional Responsibility to investigate.

The type of behavior that warrants a complaint to the IRS is any of the following::

I guarantee you relief from tax obligations;

Falsely state the length of time required to complete a debt relief application Or

Do not include relevant financial statements that contain asset information provided in the hands of the IRS.

You may also submit a complaint to the FTC via the internet or by calling 1-877-FTC-HELP. The FTC can record consumer complaints in the Consumer Sentinel Network, a secure online database and an investigative tool utilized by myriad law enforcement agencies throughout the U.S. and abroad.

Taxpayer Tips

If you are owed back taxes and are having difficulty meeting your tax obligations:

Read your notices from the IRS or the state comptroller. Talk to these agencies about ways to collect.

You can avoid a lot of hassle by not heeding the promises of firms that claim that you “qualify” to be eligible for an aid program for tax relief to pay off taxes. It is only the IRS or the state comptroller that will determine that. Look at the IRS Offer in the Compromise Booklet and Form 656-B, and then use the IRS Online Tool to determine whether you are qualified to receive the offer-in-compromise.

Beware that the whole cost of services is demanded in advance without any indication of how services will be charged or if any refunds of fees not earned will be provided.

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