Tax season may come and go, but the possibility of tax problems does not end with submitting your tax return. Unforeseen circumstances or errors in the filing process can lead to complex tax issues that require expert assistance and resolution.
If you have filed your tax return and haven’t heard from the IRS, that is generally a positive sign. Typically, the IRS contacts taxpayers when they require additional information, encounter issues with their tax return, or if someone fails to file. Nonetheless, once the IRS gets in touch about your case, it can be overwhelming, especially if they have imposed penalties. So, having a tax professional by your side can be highly beneficial in such circumstances.
Here at Universal Tax Professionals, our experienced international accountants are equipped to address any tax-related challenges you may face. Additionally, we offer an extensive array of US expat tax services tailored to American expatriates, regardless of their location.
What is Tax Resolution?
Tax resolution refers to addressing and resolving tax problems or issues with tax authorities, such as the Internal Revenue Service (IRS) in the United States. These issues range from simple concerns like missing tax documents to more complex matters like tax audits, unpaid taxes, penalties, and tax debt.
The primary goal of tax resolution is to reach a favorable agreement with the tax authorities, ensuring that taxpayers can resolve their outstanding tax issues and achieve compliance with tax laws.
Universal Tax Professionals acknowledges that each tax situation is unique, so we plan, develop, and provide tax resolutions based on the client’s needs. If you are facing a tax problem this 2024, even if you can solve it independently, here are a few reasons why using a tax resolution service will help.
Understand the Tax Problem
When taxpayers receive a notice from the IRS or encounter tax-related challenges, panic and stress can cloud their judgment and decision-making. At Universal Tax Professionals, we recognize the importance of addressing these concerns with a calm and rational approach.
Our tax resolution experts are trained to carefully review the IRS notice or tax problem you are facing. Our proficiency in tax return preparation allows us to approach the situation with a measured perspective. Instead of attempting to solve the tax problem immediately, we take time to examine its root cause.
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We conduct a comprehensive analysis to determine what went wrong on the tax return, or whether the IRS might have made errors in sending the notice. This approach saves valuable time and streamlines the negotiation process with the IRS, as we can address discrepancies or misunderstandings upfront. In some cases, it may reveal that there was no tax due in the first place, relieving you of unnecessary stress.
We pay close attention to every detail, including errors or outstanding tax liabilities. Gathering all the relevant information ensures an accurate assessment of the situation’s severity, allowing us to take the best action moving forward.
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.
Once we have thoroughly assessed your tax situation and gained a comprehensive understanding of your tax problems; our team creates a customized strategy that aligns with your unique circumstances. We leverage our in-depth knowledge of international tax laws and regulations and years of experience handling diverse tax issues to develop the most suitable approach for your case.
In situations where you disagree with the IRS’s decision concerning your tax case, you can request a tax appeal. This process involves explaining why you disagree with their decision and providing supporting evidence to substantiate your position.
When the IRS decides on your tax matters, such as a tax assessment, tax penalty, or denial of certain tax benefits, it is common for taxpayers to have differing interpretations or believe that the IRS’ decision is incorrect. In such cases, the tax appeal process offers an opportunity to seek a fair and impartial review of your case by an independent IRS appeals officer.
To initiate a tax appeal, you must file a written protest with the IRS within a specified timeframe, typically outlined in the IRS notice you received. In your objection, you should clearly outline the reasons for your disagreement and provide any relevant documentation that supports your claims.
Once your appeal is filed, an IRS appeals officer, separate from the original IRS examiner who made the initial determination, will be assigned to review your case. The appeals officer will assess the information presented by both parties and may conduct further discussions or meetings to understand the issues at hand better. You can submit additional evidence or documentation to strengthen your case during the process.
Being well-prepared and having a convincing argument is essential in the tax appeal process. Our team of skilled tax experts can guide you through this process, help you build a strong case, and advocate for your best interests before the IRS appeals officer. With our support, you can confidently navigate the tax appeal process and strive to secure a resolution that aligns with your position and ensures fair treatment under the tax laws.
Tax Debt Relief
If you are in a situation where you owe taxes to the IRS and are unable to pay the total amount, there are solutions or tax relief services available to help you handle your tax obligations. At Universal Tax Professionals, our initial step involves a thorough assessment of your tax circumstances to verify the accuracy of the amount owed. Once we understand your tax debt comprehensively, we can collaborate with the IRS to explore different options for effectively managing your tax liabilities.
When taxpayers fail to pay their taxes on time or neglect to pay, the IRS may impose additional interests and penalties on the outstanding tax balance. However, a potential remedy could allow you to reduce or eliminate these imposed penalties if you demonstrate valid reasons for the delay.
Penalty abatement is a tax negotiation program designed to relieve taxpayers facing unforeseen circumstances or situations beyond their control that prevented them from fulfilling their tax obligations on time. To be eligible for penalty abatement, taxpayers must present a reasonable cause statement outlining the genuine reasons for their failure to file or pay taxes as required.
A reasonable cause statement can encompass various scenarios, such as serious illness, natural disasters, unavoidable absence, or financial hardships. It is crucial to provide sufficient documentation and evidence to support the claims made in the statement. This evidence might include medical records, affidavits, disaster declarations, or financial documents demonstrating financial hardship.
When requesting penalty abatement, it is essential to do so immediately and in writing. You must submit the reasonable cause statement with the tax return or in response to an IRS notice that imposed the penalties. The IRS will then review the statement and supporting documents to determine if the taxpayer meets the criteria for penalty relief.
If you find yourself facing an IRS audit, Universal Tax Professionals can provide expert assistance by offering comprehensive audit representation services. Our international tax accountants are well-equipped to guide you through the audit process, ensuring that all necessary documents and correspondence are prepared accurately and promptly.
It is important to understand that being selected for an IRS audit does not automatically imply wrongdoing on your part. IRS tax audits can be triggered for various reasons; in some cases, they may be entirely random. During the audit, the IRS may seek to verify that the information reported on your tax return is accurate and in compliance with tax laws.
We will work closely with you to gather all relevant documentation and records to substantiate the details on your tax return. We aim to present your financial information in the most organized and transparent manner to the IRS, ensuring a fair and accurate assessment of your tax situation.
Our team will communicate with the IRS on your behalf, addressing any inquiries or concerns that may arise during the audit process. Our approach to audit representation is proactive and client centric. We aim to make the audit process as smooth as possible, and our priority is to protect your rights as a taxpayer and ensure that your tax matters are resolved fairly.
Statute of Limitations
Understanding the statute of limitations is crucial when dealing with tax debt. The IRS has a specific time limit of 10 years from the tax assessment date and notice issuance to collect a tax debt. If this period expires, and there have been no interruptions or suspensions to the statute clock, the tax due may be eliminated.
Conducting a meticulous review and investigation is important to determine whether your case’s statute of limitations has expired. The clock begins ticking when the IRS officially assesses the tax and sends you a notice detailing the amount owed.
During the statute of limitations period, the IRS retains the authority to take collection actions against the outstanding tax debt, such as garnishing wages, placing liens on property, or seizing assets. However, once the 10-year timeframe concludes, the IRS loses its legal right to enforce collection on the debt. The statute of limitations can be complex and may be affected by various factors, including specific events or actions that suspend or extend the period.
We are well-versed in navigating the intricacies of tax law. We can thoroughly examine your tax situation to ascertain whether the statute of limitations has expired. If it is determined that the statute of limitations is close to expiring or has already expired, we can use this information to negotiate with the IRS for potential tax relief or resolution of the tax debt.
Innocent Spouse Relief
While filing a joint tax return can offer advantages, it also entails joint responsibility for the tax liabilities. Unfortunately, life circumstances may change, leading to the end of relationships and financial separations. If you find yourself facing a tax liability that you believe should be the sole responsibility of your former spouse, Innocent Spouse Relief offers a potential solution.
IRS Form 8857, also known as the Request for Innocent Spouse Relief, provides a means for individuals to seek relief from tax debts and penalties they consider to be their spouse’s or former spouse’s responsibility. The Innocent Spouse Relief provision protects individuals unaware of errors, omissions, or fraudulent activities on a joint tax return filed with their spouse.
To be eligible for Innocent Spouse Relief, you must fulfill specific criteria, including providing evidence that you were unaware of any inaccuracies or deceptive actions during the joint tax return filing. Moreover, you must show that holding you accountable for the tax debt would be unjust based on the prevailing circumstances.
The IRS will thoroughly review your request, considering the facts presented, before deciding, so providing compelling evidence and a detailed explanation of why you should not be held accountable for the tax liability is crucial.
Be Your Representative
We can take away the fear of dealing 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 though every tax situation differs, 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.
Negotiate with Tax Authorities
Effective negotiation is vital to reaching a favorable resolution when dealing with the IRS or other tax authorities. Through these negotiations, we will strive to secure the best possible outcome for your tax case, whether it be reducing tax debt, obtaining tax penalty relief, or achieving a fair resolution to any disputes. Our goal is to advocate for your interests while maintaining open communication with the tax authorities throughout the process.
Monitor Progress and Ensure Compliance
As we work towards resolving your tax issues, we will closely monitor the progress of your case. We will inform you of any developments and ensure all required documentation is submitted accurately and on time.
Moreover, we will assist you in maintaining compliance with ongoing tax obligations to prevent future problems. Our commitment extends beyond resolving your immediate tax concerns as we strive to empower you with the knowledge and tools to stay on top of your tax matters moving forward.
Accurate Future US Tax Returns
As the saying goes, prevention is better than cure. Having accurate and high-quality tax returns is vital to shield yourself from the complexities of tax problems. At Universal Tax Professionals, we boast years of experience preparing top-notch tax returns. Our team of international tax accountants is equipped to offer tax planning and advice for the upcoming tax year.
If we have provided you with any tax resolution service, it means that we possess an in-depth understanding of your tax situation, making it effortless for us to prepare your future tax returns and ensure that you won’t encounter any further tax problems with the IRS.
Feel free to contact us if you need help solving your tax problems, require any other tax resolution service not mentioned in the above article or need help in preparing your 2024 US tax return.