Tag Archives: IRS Debt

IRS Tax Settlement Help – Tax Debt Tips From a Qualified Tax Professional

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The help of a qualified professional can be an invaluable asset when attempting to resolve a tax debt issue. However, finding the right person for the job can be a difficult task in itself. Many companies that advertise tax settlement help are made up of salespeople and marketing agents who know very little about negotiating with the IRS. Tax law is complex and negotiating with the IRS can be challenging so it is important to find a tax professional who is experienced in providing tax settlement help. To insure that an individual has the knowledge and experience to provide the help you are looking for, it is a good idea to verify their current licensure with the state certification agency and to check their standing with the Better Business Bureau. Hiring a tax professional with verifiable credentials is really the only way that you can be sure of the qualifications of the person you are hiring.

By the time a taxpayer contacts us, they have frequently made numerous unsuccessful attempts to resolve their tax debt by negotiating directly with the IRS. While IRS employees are usually very competent, it is important to remember that it is the job of an IRS agent to collect the taxes you owe. In addition, the IRS is divided into many unconnected departments with very specific functions, so there is a good chance that the agent who happens to receive your call actually does not know how to provide the tax settlement help you are seeking. At Professional Tax Resolution, we work with the IRS on a daily basis. Since we are very familiar with their policies and procedures, we know how to communicate with them effectively and will negotiate with them on your behalf to provide the tax settlement help you need.

If you are a person who has put off seeking tax settlement help, it is important to realize that procrastination can result in some very unpleasant consequences. Tax debt balances continue to accrue penalties and interest until the balance is either paid in full or a tax settlement is reached. This being the case, it is not uncommon for penalties and interest to make up more than half of the total balance that a taxpayer owes. In addition, if a tax debt is ignored long enough, the IRS will initiate some form of enforced collection activity such as a tax lien, a tax levy or a wage garnishment. Any one of these actions usually results in serious damage to the taxpayer’s credit rating. An experienced tax professional will often be able to stop such enforced collection actions and will negotiate on the taxpayer’s behalf to arrive resolve their tax debt using the settlement option that best fits that taxpayer’s specific situation. The available tax settlement alternatives include the waiver of penalties and interest and partial payment settlement options where the IRS accepts an amount that is significantly less than the amount actually owed.
If you are in need of tax settlement help, probably the most important decision you will make is the selection of a qualified tax professional. The CPAs and Enrolled Agents at Professional Tax Resolution have many years of experience providing tax settlement help. We encourage our customers to check our memberships, reviews and affiliations for verification of our credentials and our past successes. For more information about the tax settlement services we can provide, visit us today at www.professionaltaxresolution.com. Contact us by phone at (877) 889-6527 or by email at info@protaxres.com to receive a free, no obligation consultation

IRS Debt – How did that happen? Now what do I do?

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Incurring an IRS Debt

Most people who have IRS debt do not find themselves in that situation due to an unwillingness to pay their fair share of taxes. It is much more common that taxpayers find themselves owing the IRS either due to a mistake on a previously filed income tax return or some unavoidable circumstance such as a lost job, a decrease in earned income or an illness. While the initial IRS debt may have been the result of an unfortunate turn of events or a simple mistake or unreported item, it has often been compounded over time by the addition further taxes, penalties and interest. It is not uncommon for penalties and interest, which are often applied retroactively when the IRS or state tax agency makes an adjustment to a return from a prior year, to account for as much as 50% of an outstanding IRS debt balance. 

Resolving an IRS Debt

The first and most important thing that a taxpayer should do to resolve an IRS debt is to stop avoiding the issue. Taxpayers often think they can simply ignore their IRS debt because collection efforts begin mildly with letters simply stating the outstanding balance. Generally, the IRS has 10 years from the date a tax return is filed to collect an IRS debt. While collection efforts begin with passive techniques such as sending an IRS letter or IRS notice, as the 10 year collection period progresses, the methods get more aggressive. Collection attempts eventually lead to the possibility of filing a lax levy on bank accounts, wage garnishments or the filing of a tax lien. Any of these actions can have a drastic effect on a taxpayer’s credit rating and financial wellbeing. When faced with an IRS debt, a taxpayer may be best served by contacting a tax settlement professional to help resolve the issue.

How a Tax Debt Settlement Firm Can Help

The most obvious way to avoid an escalating IRS debt is to not incur the debt in the first place. While this may seem obvious, it is easier said than done. Mistakes are made and life events occur that are sometimes unavoidable. However once an IRS debt is incurred, it may be a good investment to enlist the help of a qualified professional to resolve the issue. Without professional help, individuals often find themselves overwhelmed by the barrage of letters from the IRS and confusion over how to proceed.

Why Professional Tax Resolution is a Good Choice

There are many different types of tax settlement firms and some, unfortunately, make promises they can’t keep and resort to unethical practices. For this reason, it important to research a potential tax resolution firm in order to select one that is reputable and has had a history of success settling IRS debt issues. To insure that a firm meets these qualifications, it is a good idea to verify their current licensure with the state certification agency and the Better Business Bureau. It is also advisable to review references if any are available. At Professional Tax Resolution, we encourage you to check our licenses, memberships and reviews. Our licensed CPAs and Enrolled Agents represent our clients before the IRS and State agency from start to finish. We work with our clients to prepare all un-filed tax returns, confirm and correct balances as reported by the IRS and provide our clients with the best tax settlement option available.