The phrase tax resolution usually refers to the process of negotiating a taxpayer’s back-tax debt down to a level that’s both acceptable to the IRS and affordable for the taxpayer. More specifically, the taxpayer and the government reach an agreement or tax settlement, and the taxpayer agrees to pay his or her tax debts in part or in full using one of the IRS’s tax resolution programs. The IRS offers several programs that cater to different financial situations and circumstances.
Back-tax debt can build from years of not filing one’s tax returns, and over time this debt can reach into to the tens of thousands of dollars. It can also result when people keep adding to an ongoing installment plan that is set up to pay the government back at a slow pace. When taxpayers find themselves in need of a tax settlement solution, many will attempt to negotiate with the IRS on their own, rather than reaching out to companies that specialize in tax resolution. The potential issue with attempting this on your own is that many taxpayers are unaware of the various tax laws that can help during negotiations. The IRS will often use any and all applicable tax laws and statutes to get indebted taxpayers to pay back as much of their debt as possible. Additionally, dealing with the IRS can leave many people intimidated very quickly, and the IRS will sometimes use this hesitation to their advantage.
On the other hand, debt relief companies that specialize in tax settlement have made it their job to know the tax laws, and they have the proper experience in dealing and negotiating with the IRS. Tax resolution professionals deal with many cases each tax year, and they know how to test the boundaries of what an IRS professional will accept as a settlement, helping you achieve a fair resolution in the end. If you have found yourself overwhelmed by back-tax debt, you do have the option to attempt tax resolution on your own, but many people have discovered the advantages of working with a BBB accredited debt settlement and tax settlement company, and have enjoyed ending up with a settlement that is fair to the IRS and also favorable to them.
Tags: tax settlement, tax resolution
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