Taxes are the funds that every citizen must pay to the government at the end of each financial year. The government utilizes these funds to develop public services, such as healthcare centers, roads, transportation systems, and other essential needs in regions lacking electricity and water.
The issue arises when an individual fails to pay taxes on time, whether they are a salaried person or a businessman; everyone is expected to comply with tax regulations, and failing to do so can result in severe consequences.
In such cases of failure, it is crucial to seek the help of tax resolution specialists who possess the expertise and ability to find solutions to such situations, resulting in better outcomes. This article will discuss when to consult a tax resolution specialist and the benefits of doing so.
Who is a tax resolution specialist?
As the name suggests, a tax resolution specialist is a highly trained professional who can provide immediate and effective resolutions to tax-related problems. They help solve all kinds of complex tax issues and can also give knowledge and guidance on ways to abide by the tax rules and regulations. They are professionals who represent their clients during audit sessions, debate and negotiate with tax authorities, and help provide an overall solution to the tax situation.
When to call the tax resolution experts?
Consulting a tax resolution expert means that the tax-related situation is severe and needs immediate action; otherwise, it would lead to grave consequences. The below pointers talk about such situations which require the professional consultancy of a tax resolution expert:
Huge tax debts
The accumulation of enormous tax debts can result in the need for a tax resolution professional. If a taxpayer has failed to pay back the taxes, which are massive amounts, the Internal Revenue Service (IRS) is entitled to sue them and take legal steps. This can be a very tough, stressful situation for any individual and can cause financial stress and setbacks.
Consulting with a tax expert can help in such cases, as these experts are trained and experienced in negotiating with the IRS authorities and try to minimize the consequences of tax failure through various means, such as payment plans and other means that the government authorizes in favor of taxpayers.
Unfiled tax returns
Refrain from paying tax returns to avoid severe consequences. Suppose an individual taxpayer did not file their tax returns or failed to file them for one year or more consistently. In that case, the IRS can impose severe punishments, legal actions, and huge penalties.
The IRS gets the full authority to condemn such cases, and they can do anything to recover the tax return, starting from the seizing of assets to the direct deduction of a certain amount from a person’s regular income.
A tax resolution specialist can come in handy in such cases as they can first of all guide adequately regarding the tax filings and help clear the outstanding amount as well as fight against such cases and try to resolve with minimum consequences faced by the client.
IRS audits
IRS audits can be very stressful for any individual and people running a business. One can easily get tensed or stressed and face anxiety upon seeing the IRS’s notification mail of a pending tax audit.
Some IRS audits can take place without even any prior notice as well. A tax resolution professional can be beneficial in such cases as they can handle such stressful audits, guide a person in preparing for such audits, help maintain compliance with the guidelines, and tackle any issues that might arise during the audit.
Understanding of Tax Rules and Laws
A country’s tax rules, laws, and regulations change with time. They are upgraded more with time to minimize any loopholes in the taxation system. By upgrading, they also make sure that it works in the common interests of everybody and is beneficial to all.
Therefore, staying constantly updated regarding such laws and regulations might not be possible, and these problems can be solved by a tax resolution expert who has the knowledge and expertise to keep themselves updated with the changing laws and regulations, guiding a person towards safe compliance with the taxation system.
Inability to repay the total tax amount
In some instances, an individual might be unable to return the exact tax amount and instead can produce only a part of it. In such cases, a tax resolution expert can provide their expertise by initiating an Office in Compromise (OIC), a procedure issued by the government in favor of the taxpayer to reduce the tax return by a certain amount.
The tax resolution expert can then negotiate the amount with the IRS and set up an agreement, following which the taxpayer needs to repay the reduced tax amount over a stipulated period.
Tax liens
As said, the IRS has the full authority to seize a taxpayer’s property by filing a tax lien. The IRS does this to clear out the outstanding tax amount and get the tax returns fulfilled on a record basis.
However, this process can be highly harmful and devastating for any individual as they can lose their financial stability, which also affects credit stability. A tax resolution expert can help in such a situation by negotiating out other ways of repayment and can even sometimes remove the tax lien charges being issued against the client.
Wage garnishments
Another serious issue faced by a taxpayer, wage garnishment, is an aggressive way of taking the tax return amount by the IRS, which means the IRS cuts a certain amount directly from the income source of a person.
This can lead to difficulties in financial stabilities, and such situations need a tax resolution expert who can vouch for their client and change the means of tax repayment into a mode suitable for the client in the long run.
Legal cases
Legal cases can arise in certain situations of tax failure and get filed by the IRS authorities. Criminal charges, fraudulent charges, and many more such charges can be issued against a person, and this can lead to embarrassment, loss of self-respect, stress, and financial instability, and can affect a person’s mental health and peace.
A tax resolution expert can take care of such cases as they have expertise in tax laws, can help remove such charges, and can negotiate with other payment methods for tax repayment, which would be helpful for their client.
Business taxes
Business taxes can be quite complicated if not appropriately maintained, and records are not kept properly. Business taxes include various things such as payroll taxes, business deductions, and self-employment taxes. Failing to meet taxation needs in such cases, especially trust fund recovery penalty. This type of penalty holds an individual personally responsible for unpaid payroll taxes.
A tax resolution specialist is of great help in such a complex business structure and can be of great help as they can guide you through the exact process needed to maintain all these tax returns and filings in the first case. Even if someone faces the consequences, these experts can help them through the situation and guide them in addressing such penalties and situations.
Complex financial cases
Sometimes, a person might have multiple income sources and a diverse investment portfolio, and real estate investments often have numerous tax deductions. In such cases of complex financial structures, a tax resolution expert can come in extremely handy and help efficiently handle such situations.
They can study each income source case and ensure they align entirely with the tax regulations and laws. They can also help solve tax problems related to such intense, complicated cases.
Final Overview
To conclude, a tax resolution expert can save individuals from various cases of tax failure. They can adequately guide an individual to align with the tax laws and regulations perfectly, make sure that the tax returns are filed correctly, and also fight or negotiate with the IRS authorities if needed to restore their client’s financial stability and mental peace.
Tax professionals are like doctors in taxation systems, helping people facing severe tax issues, which can cause grave legal consequences and impose heavy penalties.
