Tax Resolution

Tax Resolution

If you filed for your tax return and didn’t hear from the IRS, that’s a good sign because typically, the IRS gets in touch when they want to confirm something, when there’s a problem with your tax return or when you did not file. Once the IRS takes an action on your situation, the process can be quite overwhelming, especially when penalties are involved so it is best to have a tax professional on your side.

Tax resolution is a service that assists tax filers and taxpayers with unsettled tax problems with the IRS. There are different tax issues that an individual could face depending on their circumstances though most of them can be resolved if proper solutions are presented to the IRS.

Here at Universal Tax Professionals, we acknowledge that each tax situation is unique so we plan, develop, and provide tax resolutions based on the client’s specific needs.

Although people have the option to solve their tax problems on their own, here are a few good reasons why using a tax resolution service will help. 

1. Understand the Tax Problem

Most people panic when they receive a notice from the IRS. This initial reaction leads to overthinking which eventually becomes a major burden. At Universal Tax Professionals, we help you assess the situation and explain your options.

2. Provide The Right Solution

Identifying the problem is just one chapter of the story. Knowing the right strategy to solve the problem would be another.

• Tax Appeal – If you disagree with the IRS’ decision regarding your case, you may request to appeal your case and provide a concrete explanation of why you disagree with their decision.

Penalty Abatement – If you fail to pay your taxes on time or didn’t pay at all, the IRS will impose interests and penalties. However, if you have a valid reason for not being able to pay on time, there is a tax negotiation scheme known as penalty abatement that you can use to reduce or eliminate the assessed tax liability. A reasonable cause statement could be prepared to indicate the reason for the missed tax filing or payment.

Back Taxes – If you owe taxes to the IRS and you cannot pay them in full, we can help you evaluate whether if you do owe those taxes and then work with the IRS on various plans that would help you manage those taxes.

• Offer In Compromise (OIC) – If you have a tax due and you cannot pay it in full due to financial hardship, you may request to pay a fraction of the amount you owed instead. It’s important to show the IRS that it is the maximum feasible amount that you can pay. If the IRS accepts the offer, the paid amount would be considered full payment of the tax owed.

 Installment Agreement – If you cannot pay the tax in a lump sum, you may request an installment plan to pay the tax due over time.

Audit Representation – In cases where the IRS wants to audit you, we can help prepare the necessary documents and correspondence to ensure an accurate and fair audit. Please note that being audited does not necessarily mean that you did something wrong. IRS Tax Audits can be random, and you may just need to prove that you have reported the correct details on your tax return.

Statute of Limitations – There is a 10-year limit for the IRS to collect a tax debt. This period starts on the day the tax has been assessed and the notice has been sent. If the clock expires and the IRS hasn’t collected the debt (assuming there’s no interruption or suspension on the statute clock), there’s a possibility that the tax due will be eliminated. A careful review and investigation of whether the statute of limitations has expired must be done.

Innocent Spouse Relief – Filing a joint tax return has its benefits, especially with higher applicable deductions and credits. However, sometimes it is inevitable for couples to take separate paths and end relationships. If you have a tax liability that you deem to be a responsibility of your spouse, then you can file IRS Form 8857 to request a relief for tax dues and penalties that you believe your spouse is solely liable for.

3. Be Your Representative 

We can take away the fear of having to deal with the IRS alone. We will act as the middleman between you and the tax authority to pave the way for the best solution to the tax problem in front of you.

Even through every tax situation is different, taxpayers’ rights are the same. At Universal Tax Professionals, we will remind you of your rights and save you from consequences that you are not accountable for. 

There could be some other resolution services that should be listed in the above article. Feel free to contact us, and let us know how we can help.

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