“Tax resolution” refers to the process of resolving tax-related issues and liabilities with tax authorities, particularly with the Internal Revenue Service (IRS) in the United States. When individuals or entities face challenges such as unpaid taxes, tax liens, or other issues with the IRS, they may seek the assistance of tax resolution professionals or experts to navigate through the complex tax resolution programs and negotiate with the tax authorities on their behalf.
The tax resolution process involves addressing various tax problems, including unpaid taxes, unfiled tax returns, and IRS collection actions. Tax resolution experts, such as Enrolled Agents, tax attorneys, and CPAs, are individuals with the authority to represent taxpayers before the IRS. They have knowledge of tax laws, regulations, and IRS procedures, enabling them to help individuals or entities find the best possible resolution for their tax issues.
Some common tax resolution options include:
- Installment Agreements: Setting up a payment plan to pay off tax debts over time.
- Currently Non-Collectible Status: Temporary relief for individuals who are unable to pay their tax debts due to financial hardship.
- Fresh Start Program: A set of initiatives by the IRS to help taxpayers settle their tax debts more easily.
- Offer in Compromise: A settlement option where the taxpayer pays a reduced amount to settle the tax debt.
Tax resolution professionals assist clients in determining the most appropriate resolution option based on their financial situation and tax liability. They also help with the preparation of necessary documentation, communication with the IRS, and negotiation on behalf of the taxpayer.
It’s important to note that tax resolution companies and experts must operate within the regulations set by the IRS, and there are ethical standards and legal guidelines they must adhere to when assisting clients with tax issues. Facing the IRS alone can be challenging, and seeking the expertise of a tax resolution professional can help individuals navigate the process more effectively.