27 Oct How Tax Resolution Professionals Can Help You Reduce Tax Debt
The IRS says you owe them money. How do you know if it’s true? Even if it is, what will you do? Whether it is to reduce tax debt or simply get to the bottom of a tax related problem, your best bet is to contact a professional.
What can a professional tax defense representative (or tax attorney) do in the way of reducing your tax debt? Let’s find out.
Lessening the Amount You Owe
If it is been determined that you actually do owe the IRS a rather large sum of money, in order to pay off your tax debt, you may want to create a payment plan. If, however, thousands and thousands of dollars are in question, one of the first things on your agenda should be to find yourself a tax lawyer well-versed in IRS issues. These people take care of the IRS so that you don’t have to. While negotiating with the IRS, they are protecting you, the client. The whole point is to reduce your debt.
When you find the right representative, there are a number of strategies that could be explored and should, therefore, be discussed with your tax attorney. These are as follows:
- “Not Currently Collectible” – If the IRS agrees, for at least one year, you could halt the efforts of the IRS to collect your debt.
- “Offer in Compromise” – Your representative may be able to work out a way that, for less than you actually owe, you can settle your tax debt.
- “Partial Payment Installment Agreement” – This is exactly what it sounds like; you agree to pay off the amount you owe through installments of partial payments.
- “Monthly Payments” – In this plan, the IRS receives monthly payments from the taxpayer owing the debt.
- “Bankruptcy” – Though not preferable in many cases, you can discharge the debt by filing bankruptcy (Chapter 13 or Chapter 7).
Before You Seek Professional Help
Whereas, speaking to a professional about your tax problems is highly recommended, it is wise to go over the original tax return in question. If you’re not good with numbers, or if you think that a simple mistake is all that has occurred – but you can’t find it – talk to a professional tax preparer.
Here are the most common mistakes made when filing taxes:
- The deadline was missed
- The tax form was not signed
- Charitable contributions qualifications were not properly executed
- An oversight involving the Social Security number
- Errors regarding filing status
- Failure to report additional income
- Different names (for spouses) or misspelled names
- Errors in computation and math miscalculations
If you determine that amending the tax return won’t solve the problem, it’s definitely time to talk to a representative who can help you reduce your tax debt.
If you would like to reduce the tax that you owe, or simply speak with a professional regarding your options, contact us today at Tax Defense Partners.