Is Using a Tax Resolution Service a Good Idea?

Is Using a Tax Resolution Service a Good Idea?

A Tax Resolution Service can help you get the IRS off your back!

If you have unpaid taxes, there are several tax relief services out there that can help you reduce the amount of debt you owe to the IRS. Tax resolution is similar to debt consolidation in that a professional or team of professionals will argue on your behalf in order to reduce your tax liabilities.

A good tax resolution service will have a solid team of lawyers and CPAs that have experience dealing with the IRS and know the ins and outs of the tax system.

Having unpaid taxes can be a very scary situation since the IRS has the power to garnish your wages or seize your assets. But a tax resolution service can often get wage garnishments and asset seizures lifted. They may also be able to lift things like tax liens or bank levies as well. Also, many tax resolution companies offer free consultations, making it much easier for you to determine what kind of tax resolution is right for you.

Tax resolution companies are able to reduce your tax debt because the IRS actually has what is known as an “Offer in Compromise” program, which is available to all taxpayers. To qualify for an offer in compromise, however, you have to prove that you don’t have any excess money lying around. In other words, you have to show that you are unable to pay the tax debt based on your current assets and current income. The IRS is willing to compromise on a lower payment because they realize that the longer you wait to pay your debt, the more likely it is that you won’t pay it. So they would rather get a portion of the money that is owed to them than no money at all.

An offer in compromise is typically a very time-consuming process and is a better option for those who owe over $25,000 in back taxes. So if you owe under $25,000 you may want to consider a less painstaking process. One thing you can do is work out an installment plan, which involves making monthly payments to the IRS over the course of a few years.

Another thing you can do is get on: “Currently Non Collectable” status with the IRS. When the IRS places you in this category, they will allow you more flexibility in paying your debts. The good news is that you can make about up to $8,000 a month and still be on Currently Non Collectable status with the IRS.

Closing Comments About the Tax Relief Specialist!

If you have tax debt, the most important thing to realize is that the IRS can’t take money from you if you need that money to pay for basic necessities like a home, car, medical bills, food, and so on. But if you do run into trouble with the IRS and they start demanding payment, a tax resolution service can help you get the IRS off your back and may also be able to significantly reduce the amount you owe.

Related article: The taxpayer’s worst nightmare, the dreaded letter from the Internal Revenue Service.

Have you had any IRS nightmares you’d like to share… please comment below?