7 Ways to Get the Best Deal in Tax Resolution

September 1, 2020

It’s not unusual to be anxious and overwhelmed when you discover you have a problem with your taxes. The IRS takes tax matters seriously, and you could face extraordinary fines or even criminal charges if you haven’t paid your taxes correctly. Fortunately, there are many steps you can take to resolve your tax problems and become free from the IRS. Seeking professional help in tax resolution is the quickest way to solve your tax problems in the least expensive way possible.

7 Ways to Get the Best Deal in Tax Resolution

1. Get Expert Help

The first and most important thing you can do when dealing with the IRS is get help from professionals who understand tax laws and the tax collection process. Tax experts have experience handling all kinds of tax trouble, and they’ve probably successfully resolved a case like yours in the past. They know which forms to file, how to negotiate with the IRS, which relief programs are available to you, and strategies that have been the most successful in the past.  

It’s extremely important that you be as honest as possible with your resolution expert. If you’ve made mistakes in the past, whether intentional or unintentional, tell your resolution team about those mistakes. Be sure to choose tax professionals who have worked on many cases and won’t judge you or hold any poor decisions against you. Many people make mistakes when it comes to taxes, and professionals understand that.

2. Respond Without Delay

Many people respond to a letter from the IRS by throwing it in the trash and hoping the problem will go away. This is the worst approach you can take. While you are ignoring the problem, fees and penalties could be piling up. The IRS could be asking employees to start the process of garnishing your wages, seizing your property, or putting a lien on your home.

Facing your tax issues immediately is the right way to move the process forward without allowing the problem to grow bigger.

3. Understand the IRS’s Response

In most cases, you will need to ask questions to understand what the IRS is asking of you and what you need to do first to stop actions being taken against you. Written communication from the IRS can be hard to follow and is often filled with tax jargon that people without a tax background cannot understand. You will need to determine exactly what went wrong before you know how to fix it.

Your professional tax resolution team will be able to help you find out exactly what needs to happen next. They will ask questions for you to find out if you have to refile your taxes for specific years and whether there are already collection actions being taken in your case. If you’ve been contacted by the IRS, you could soon be facing wage garnishments or liens, and you need to find out if those steps are already being taken against you.

4. Begin the Process of Asking for a Hold 

Many times the first thing to do is ask for a hold on your account. This is done by filing certain forms with the IRS to ask that specific measures be taken. When you ask for a hold, you are asking the IRS to agree to stop any actions being taken against you until you can come up with an appropriate plan and response.

IRS holds are often for short periods of time. You will likely have to request several holds before your tax problems are solved. This is something an expert will be able to handle for you.

5. Find Out if You Qualify for Non-Collectable Status

Some people qualify for a temporary non-collectible status, which means you will not have to pay what you owe the IRS for a limited period of time. You may qualify for this type of relief if your income and expenses are such that you cannot afford to pay your tax bill. Eligibility is determined by assessing your income and your expenses. You will be required to tell the IRS how much you pay for specific bills, how many people you support, and how much money comes into your home.

The IRS has guidelines to determine who is eligible for this status and who is not. A professional will be able to advise you as to whether or not you will be accepted for non-collectible status. Then you will need to work out a strategy for what you are going to do in the future. The IRS will not leave you alone forever even if you do qualify for non-collectible status, so you’ll need to have a plan ready.

6. Compromise on the Amount You Owe

Sometimes you might be able to offer the IRS a lump sum of money in exchange for your tax bill being forgiven. This is a negotiation process that takes careful planning and implementation. The IRS wants to recover as much of the money you owe as possible, so the negotiation tactics may be tough.

You should have someone on your side who is experienced in negotiating with the IRS and knows how much they are willing to forgive. An experienced tax resolution professional will be able to get you the best compromise possible and get rid of your tax problems quickly.

7. Create a Payment Plan

If you don’t have the money to pay the IRS one lump sum to take care of your tax bill, you can often negotiate a payment plan. This means that you will pay toward your balance on a regular basis. You will need to negotiate the payment amount you are making to the IRS as well as any interest that will accrue over time.

Again, negotiating a payment plan with the IRS can be a tedious process. The IRS representatives will fight to get as much money from you as possible in the smallest amount of time and with the highest interest rates. Professionals who have experience negotiating with the IRS know how low the IRS is willing to go in payments and how little interest you could be offered. For this reason, you will want an expert negotiating on your behalf.

Dealing with the IRS can be frightening. You may be afraid of having to pay huge amounts of money in penalties and interest, and you may even be worried about having to go to jail because you have made a mistake or bad decision when it comes to paying your taxes. Talking to a tax relief expert will help you put these worries aside so that you can be confident in knowing your tax issues will be resolved in a way that is the least costly to you both in terms of money and anxiety.

The experts at Geaux Tax Resolution LLC are ready to be the team that solves your tax problems. They know how to negotiate with the IRS and how to fight for your best interests. You need knowledge and experience on your side to get the best deal from the IRS, so make sure you turn to someone you can trust when tax trouble is affecting your life. Visit Geaux Tax Resolution LLC online today to find out more.