A Resolution is an arrangement with a tax agency that allows you to (1) settle your tax debt for a reduced amount; (2) temporarily stop IRS collections; or (3) pay for your tax debt in installments over time. This is not an exhaustive list of possible resolutions. For more information, review the program options you may qualify for here.
It’s common for taxpayers to feel that there is a dead-end when they are in debt to the IRS. The truth is that you can and should come to a compromise with IRS. It’s the job of a tax professional to help you resolve your tax issues within your means.
Millions of Americans fall victim to tax debt, and they tend to overpay or miss out on opportunities for reductions and forgiveness when they handle their tax issues themselves. That’s where TaxRise comes in, acting as your liaison.
However, tax resolution is not something you can accomplish in an afternoon.
By neglecting your tax duties, not only will you accrue interest (sometimes up to 50% of what you owe), but you will be subject to much worse penalties.
The IRS has the most aggressive collection tactics, so you don’t want to avoid them for too long. Over time, you could find yourself with garnished paychecks or even risk having your property seized.
Facing the IRS Alone
If you’re in a situation where you will inevitably have to deliberate with the IRS: you may be wondering if you should take them on by yourself or enlist professional assistance.
No law or rule prohibits you from debating with the IRS on your own. However, taking on the IRS is no minor task; consider these factors first:
Instances Where You Should Go Alone
Two important considerations are the monetary cost and how much time and effort you are willing to dedicate to your case.
For example, if you have a relatively low tax bill – $5,000 or less – you might be better off getting into an installment agreement with the IRS. You will save yourself money by forgoing a tax expert.
Furthermore, should you get audited by the IRS but have all your documents, files, and records in order and can verify everything on your returns, you won’t need a professional.
Possible Downsides of Going Alone
While you will save yourself money, deliberating without a representative has its risks. For example, you risk saying something factually inaccurate, getting overly emotional, or getting talked into a less than ideal resolution.
Facing the IRS With A Tax Expert
You may not realize it, but you might not owe as much as you’d expect. Our team of skilled professionals will often find ways to get you on a payment plan or even reduce the balance owed. Depending on your individual situation, you may not have to pay anything at all.
The Benefits of Choosing a Professional
Your time commitment will drastically decrease when the resolution is not your responsibility. A significant portion of the workload falls on the tax expert. Typically, all you need to do is provide them with the necessary documentation in a timely manner.
A tax expert will also fare favorably with the IRS. The IRS prefers to work with tax professionals because it makes their job easier – as they both are at comparable levels in tax law knowledge.
Tax experts bring experience, insight, and resources to your case. A practiced eye can examine your situation and come up with an ideal strategy. Plus, an expert can skillfully dialogue and communicate with the IRS.
How TaxRise works to Resolve your Debt
Our experts will take the time to learn every detail of your case so that they can successfully resolve your debt. The exact means by which you will achieve debt resolution is dependent on circumstance. Factoring things in such as how much you owe, how long you’ve had this debt, and what you’re able to pay will determine what kind of assistance you can receive.
You are capable of resolving your debt on your own without the use of a professional. However, if you have been struggling with this issue for some time, perhaps our pros at TaxRise will catch something that you missed, or maybe we can parley for a better resolution for you.
Compare utilizing a tax software as opposed to a tax attorney.