The Benefits of Hiring a Tax Relief Company

If your car breaks down, do you call a mechanic or try to rebuild your engine at home? What about if a pipe bursts in your bathroom? Or if you break your arm falling down the stairs?

You probably get the point by now. Each of these scenarios requires you to call the professionals and get some much-needed help.

So why should dealing with the IRS be any different?

What are the Benefits of Hiring a Tax Resolution Company?

We can all agree that the IRS is an intimidating agency. It makes sense when you think about it.

Not only are the rules they enforce complicated and confusing, but they also have the full support of the government and legal system. With so many tax laws, codes, and liabilities enforced by the IRS, it is challenging to follow all the rules.

If unlucky, taxpayers may experience a conflict with the IRS at some point, and going up against the IRS alone is dangerous. Taxpayers could be taking on an army of highly trained tax agents by themselves.

But, hiring a tax relief company helps taxpayers challenge the IRS. Not only can they protect themselves from the IRS, but they can help fight back.

These are a few of the ways that hiring a tax relief company helps you:

They’ll Protect Your Assets and Income

Accountants and bookkeepers might operate the IRS, but make no mistake; taxpayers should take them seriously. Pens and calculators might not garner as much respect as badges, guns, and handcuffs, but they still cause problems.

Two of the most powerful weapons in the IRS’s arsenal are wage garnishment and asset seizures.

• Wage garnishment is when a taxpayer’s employer withholds a certain percentage of money from their paycheck. The IRS can garnish up to 50% of a taxpayer’s disposable income. This is dependent on the payment amount.
• Asset seizures are when the IRS legally seizes taxpayer assets and sells them to cover their taxes. Though there are some limits to seizures, bank accounts, homes, vehicles, and real estate, are subject to be legally withheld by the IRS.

As long as the taxpayer account has a collectible status, the IRS will continue to employ these tools until taxes are paid. By the way, a reputable tax resolution company helps to stop or prevent these collection methods before they leave taxpayers with nothing.

They’ll Help To Stop Tax Liens and Levies

The collection methods listed above are technically defined as tax levies. Another reason it’s best to work with a licensed tax professional is they are skilled at working with liens and levies. A common problem that arises with inexperienced taxpayers is that they often confuse tax liens and levies.

The easiest way to look at it is that a tax lien is a legal claim against taxpayer property or assets. A levy is whenever a property or asset is taken by the IRS and sold.

The IRS is legally obligated to provide a notice (lien) before they seize (levy) anything taxpayers legally own. While a lien is not as consequential as a levy, it should still take it seriously.

They’ll Interpret Tax Law for You

The United States Tax Code is one of the most complicated tax systems in the entire world.

A large majority of other first-world countries provide “return-free” tax services. Those countries’ version of the IRS simply deducts the taxes from their citizens’ income throughout the year. Tax returns are filed automatically for the taxpayer at the end of the fiscal year. The taxpayer would receive a refund if they paid too much in taxes or a bill if they didn’t pay enough.

The tax system in the United States is more complex. Although this complexity leads to added stress and frustration for taxpayers, it’s not always a bad thing.

The tax code for Americans allows several deductions, exclusions, and credits. Getting married, buying a home, saving for retirement, and even paying student loans are examples of potential benefits. The problem is that most people aren’t aware of these opportunities even though they qualify for them.

A professional tax preparer or certified public accountant helps apply these deductions on tax returns. It’s possible to end up lowering taxpayers’ overall tax obligation and save a lot of money as a result.

Tax Resolution Companies Explain IRS Processes to You

The actions of the IRS might seem like they are impossible to understand, but they are extremely calculated. The IRS has clearly established codes, rules, and guidelines that must be strictly adhered to when collecting taxes.

These boundaries are not just polite suggestions; they are laws that must be obeyed under severe penalty. For example, every taxpayer has a fundamental set of rights that the IRS must respect.

The “ Taxpayer Bill of Rights ” is beneficial when dealing with the IRS:

1. The Right to Be Informed. Every taxpayer is entitled to clear explanations of all IRS procedures and decisions that affect them.

2. The Right to Quality Service . All taxpayers have the right to be treated promptly with courtesy and respect.

3. The Right to Pay No More than the Correct Amount of Tax. No taxpayer shall be charged more than their legal tax amount, plus any corresponding interest or penalties.

4. The Right to Challenge The IRS’ Position and Be Heard . Every taxpayer has the legal right to object to any findings of the IRS and provide evidence to back up their objection.

5. The Right to Appeal an IRS Decision in an Independent Forum. All taxpayers are entitled to an impartial and fair appeal of IRS decisions and conclusions.

6. The Right to Finality. Each taxpayer has the right to know the maximum amount of time they can appeal an IRS decision as well as the maximum time frame that the IRS has to perform an audit or collect payment.

7. The Right to Privacy. No taxpayer shall have their right to privacy infringed upon by the IRS and protected by all applicable search and seizure protections.

8. The Right to Confidentiality. Any information provided to the IRS shall not be disclosed unless authorized by the taxpayer or legal system.

9. The Right to Retain Representation . Every taxpayer has the right to retain an authorized tax representative of their choice who represents them in cases involving the IRS.

10. The Right to a Fair and Just Tax System. The IRS and tax system must consider all facts and circumstances that might prevent the taxpayer from repaying or providing information on time.

Tax Resolution Companies Can Find You a Favorable Solution

Although there might be similarities, no two tax problems are the same. Every taxpayer or business encounters specific details and scenarios when facing issues with the IRS.

A high-quality tax resolution specialist combs over every aspect of taxpayer finances and reviews the applicable tax codes. Their goal is to help taxpayers find the most favorable solution to their tax issues.

That doesn’t mean that they can eliminate the taxes owed. But it does mean that they will work diligently to keep taxpayers from paying any more money to the IRS than what’s necessary.

Tax Resolution Companies Represent You

Thousands of highly trained agents operate the IRS.

Each of them is extremely well versed in tax law and has completed thousands of hours of higher education courses regarding economics, finances, and accounting. So representing oneself in a dispute with the IRS is like racing an Olympic sprinter despite barely exercising.

The experts who work for tax resolution companies are more than capable of going toe to toe with IRS agents. In fact, there are plenty of tax relief experts that even specialize in “IRS representation” or are former IRS agents themselves.

Successfully going up against the IRS isn’t impossible. But hiring a tax professional to represent taxpayers increases the chances of success.

They Can Help You Stay Off the Radar

Dealing with the IRS is a little bit like being pulled over by a police officer when driving. Whether one gets a ticket or just a warning, they’ll probably be feeling pretty stressed and vulnerable whenever they get back on the road. Being in the crosshairs of the IRS is a very similar feeling, except it lingers for months instead of minutes.

Hiring a tax relief firm not only helps taxpayers resolve current tax issues with the IRS but can also help them stay off the radar in the future.

Tax resolution specialists educate clients on why they ended up in their situation. It helps taxpayers avoid making the same mistakes again and cures the cause of the issue instead of just the symptoms.

When Should You Hire a Tax Relief Company?

Taxpayers should only enlist the help of a tax resolution specialist when their problem has gone from an inconvenience to an emergency.

It’s like calling the fire department and using a fire extinguisher if the oven was left on for too long by accident. The same is true with the IRS. There is no need to involve a tax resolution service if the IRS claims that a taxpayer owes an extra hundred dollars in back taxes.

But, any issues with the IRS should be taken very seriously. However, not all problems are the same degree of severity. These are a few of the most common examples of when a tax resolution company helps taxpayers the most:

When Your Tax Bill Is Past Due

Every United States citizen that meets the qualifying criteria for paying taxes is legally required to do so. The annual deadline for filing tax bills is on or around April 15th. If a taxpayer fails to file their return on time, the IRS will notice and apply various penalties.

Each month that a tax bill is past due is another milestone for penalties. The IRS tacks on 5% of total unpaid taxes every month that taxpayer returns are late. This penalty starts the day after the due date for taxpayer taxes and can reach up to 25% of their total unpaid taxes.

So, within a few short months, a $10,000 tax payment can quickly turn into $12,500. Filing a return more than 60 days after the due date receives a minimum penalty of $135 or 100% of the total unpaid tax, whichever is smaller.

A tax resolution specialist helps clients get their taxes filed on time, work out a payment agreement with the IRS, or ask for an extension to file a return. Taxpayers are free to request any of these options from the IRS on their own, but hiring a tax resolution specialist will increase the odds of success.

If You’re Curious About Tax Forgiveness

As long as taxpayers owe the IRS taxes, they can continue to be charged interest and late fees. It doesn’t take a long time before these financial penalties start to compound and add up.

It’s possible that one might end up facing an amount that is insurmountable and virtually impossible to pay off. Remember that the IRS can legally garnish wages and seize assets from taxpayers to repay any back taxes owed. So that means that taxpayers could end up losing nearly everything they legally possess and still having an outstanding tax payment.

Fortunately, the IRS will negotiate with taxpayers who are far behind or have extenuating circumstances preventing them from paying their back taxes. The IRS is willing to listen to an “Offer in Compromise for these situations.”

Making an Offer in Compromise will mean that a taxpayer is asking the IRS to settle their taxes for less than what they owe. Since the IRS holds all the cards, it is difficult to convince them to accept an offer. At most, the IRS will only accept around 40% of these compromises a year. But if they do accept an offer, it could save taxpayers a lot of money in the long run.

The IRS is under no obligation even to entertain the idea of a compromise, so proposed offers will need to be a good one. A tax resolution specialist can review taxpayer finances and create an offer that the IRS is more likely to accept.

When You Want a Payment Plan You Can Afford

The IRS is willing and eager to help taxpayers pay off their back taxes, especially if they aren’t trying to reduce those amounts owed with an Offer in Compromise. One of the most commonly offered methods of paying back taxes is officially called Installment Agreements. These agreements are just payment plans with a fancier name.

The IRS is known to offer Installment Agreements that last for as long as 72 months. Having an extra six years to pay down a tax payment is a lifesaver for anyone owing a significant amount of taxes. The issue is that the IRS tends to tack on application fees and interest to a taxpayer’s plan.

As a result, one could end up with a payment plan that they cannot afford. A tax professional helps taxpayers create an affordable installment plan that won’t land them in even deeper trouble with the IRS.

When You Have a Tax Lien Notice

A tax lien is the IRS equivalent of declaring a “checkmate” in a chess game. Unless taxpayers take the right actions, they could end up losing something very valuable.

It’s a good idea to talk with a tax resolution specialist about any notice that the IRS sends to taxpayers. But if the notice is a tax lien, taxpayers should immediately call a tax resolution company. Hesitating can cost them the items listed on the lien; plus, they may still owe more to the IRS.

When You Don’t Want To Deal With the IRS Yourself

Spending a few hours filling out tax returns each year is a headache. But it’s nothing compared to spending a few months resolving an issue with the IRS.

The United States Tax Code is extremely detailed and easy to read or comprehend. There is a reason why even entry-level IRS agent’s positions have such strict requirements.

Not only will the experience of dealing with the IRS provide plenty of stress headaches, but taxpayers probably won’t be very successful. So, it’s best to let the tax professionals duke it out with the IRS.

Does Hiring a Tax Relief Company Make Sense for You?

Taxpayers should schedule an appointment with tax resolution specialists as soon as possible if they experience any of the situations listed above. There are no downsides to letting a tax professional handle IRS disputes.

Even though it costs taxpayers some money to hire a specialist, they could save enough to cover those costs. Tax relief experts have decades of combined experience dealing with the IRS.

Give them a call today and find out their plan for getting you a fresh start financially.

What are the Pros and Cons of Hiring a Tax Relief Company?