Strategic Tax Resolution

An applicable strategic tax resolution can be found for the weary taxpayer. Tax season is a time of high anxiety for many as the task can be quite complicated. Many financial advisors offer services that, for a fee, will assist with the necessary forms for some or all of a customer's taxes. Companies that offer such tax solutions closely examine every customer's individual situation and offer advice, tips or solutions on the most effective and efficient resolutions. Most will work directly with the customer, yet manage all the details and even help the customer complete the possibly confusing forms.

The IRS, Internal Revenue Service, is an agency of the United States Government that handles the collection and enforcement of taxes. The payment of taxes is notorious for being confusing and many people run into problems, specifically IRS tax problems. The majority of problems that are due to taxpayers either not paying what they owe, or are trapped in a situation where they are unable to pay the required amount. Occasionally, there are even citizens who refuse to pay what the IRS says is owed. Financial experts suggest ways to avoid potential IRS tax problems, and advise those who have the means to do so to hire a financial advisor or accountant. There can be many benefits to hiring someone who is experienced in such matters and can provide assistance and help to get the necessary forms filled out in the allotted time. Hiring a financial advisor can be beneficial and can save a lot of money in the long run and help to avoid frustration.

IRS tax problems arise when a taxpayer has failed to pay what is owed by a specified time. When this occurs the Internal Revenue Service takes action in various forms depending on what the situation requires. The Internal Revenue Service has what is considered 'enforced collection'. This means that if a taxpayer ignores the efforts made by the IRS to get in contact with them the Internal Revenue Service has the ability to force payment. This can be an effective tool as the taxpayer is forced to take notice. The agency has the power to seize one's bank account, this means that they have the ability to contact a delinquent taxpayer's financial institution and freeze the customer's accounts. A strategic tax resolution is needed when such situations occur, and help can be found but must be done so in a timely manner before one's situations worsens. Avoidance of cooperation can lead to more problems, such as wage levies.

A wage levy can be issued against a delinquent taxpayer. Occasionally a situation will arise where the IRS takes most of a taxpayer's paycheck, preventing them from having enough to meet monthly bills. The IRS has the right to contact an uncooperative taxpayer's employer and have the employer withhold the amount due to them, therefore forcing the taxpayer to take notice. This system can cause problems as the IRS can reduce someone's paycheck to a little over one hundred dollars a week, barely enough to live on. For this reason many financial companies offer a wage levy release which is a way for taxpayers to combat wage levies.

The IRS can seize automobiles, houses, personal properties, whatever is required to get a taxpayer to pay what is due them. One who is inflicted by such actions must contact an experienced financial representative as soon as they are able in order to ensure that proper actions can be set in place that will help them to pay off debt before the loss of everything. Taxpayers who find themselves in such predicaments are in need of a strategic tax resolution, but should also keep in mind that despite the fact that the IRS does have the ability to seize personal assets, there is a limit to that power. The IRS must have a form of written documentation that shows the approval of a federal district court judge or magistrate. Those who refuse to pay taxes should also keep in mind that failure in the filing of tax returns is illegal and can result in criminal charges, fines, and possibly lead to one's financial ruin. Those who resist filing returns are usually people who can either not afford the cost of their taxes or because they simply refuse to pay.

IRS tax problems can be avoided through a variety of ways. One is for an individual or business to keep good records. Keeping track of individual expenses and costs on a regular basis helps to know what has been done, what is yet to do, and where money has gone. Those who keep records are more likely to avoid running into problems with such agencies as the Internal Revenue Service. Another way of avoiding problems with taxes is for one to understand the notices sent out by the IRS. Such forms can be confusing, especially for those who live a busy lifestyle and might not necessarily have the time to sit down and carefully read through a form. However, doing so can prove imperative as the failure of filing taxes can be a serious offense resulting in fines and possibly time spent in prison. Taxpayers are wise to follow the law when the time for payment comes around, "Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God. Whosoever therefore resisteth the power, resisteth the ordinance of God" (Romans 13:1-2).

There are companies that can offer an applicable strategic tax resolution, solutions and several courses of action on how one can recover after being audited. When one is audited they can formally appeal the audit, even if the appeal is denied the IRS recognizes the action which results in the delay of the bill, providing more time for the delinquent taxpayer to pay what they owe. Those who desire to appeal an audit must do so by filing a formal protest letter through a tax attorney. The payment of taxes is not the most enjoyable experience, but should not be avoided.

IRS Tax Resolution

Mounting income tax problems as a result of economic woes are pushing more individuals, businesses, and corporations to the brink of financial ruin. Escalating unemployment, the unavailability of liquid assets, and higher interest rates can all contribute to domestic financial problems. As the United States faces uncertain economic times, more taxpayers are unable to meet federal and state tax obligations. When businesses fail, they can wind up owing Uncle Sam hundreds of thousands of dollars in unpaid corporate taxes. Individuals struggling to make ends meet may defer paying income or property taxes; some running the risk of losing homes and other real estate holdings. Bankruptcy may be a solution, but the consequences of such drastic action are long lasting and detrimental to efforts to obtain future financing. Unfortunately, income tax problems don't go away with bankruptcy. Delinquent federal and state taxes are not dischargeable under U.S. Bankruptcy law; and late penalties will continue to accrue. The longer taxpayers take to address IRS tax resolution, the more money they will owe to the government.

But contrary to popular belief, Uncle Sam is not a cold hearted bill collector. The average taxpayer is unaware of options available for resolving income tax problems. The federal government has payment options for cash-strapped taxpayers that will help resolve indebtedness. Information regarding IRS tax resolution can be found online at the website, by dowloading Publication 594, or by contacting a local IRS office for assistance in resolving tax matters. Delinquent taxpayers can download and submit a Form 9465 Installment Agreement Request to establish a monthly payment plan to whittle down outstanding taxes. IRS tax resolution requires that taxpayers submit financial statements, including income earnings and expenses to the government as proof of an inability to pay. Form 656, an Offer in Compromise (OIC), is a lengthy document the Internal Revenue Service allows delinquent taxpayers to submit in order to resolve past due payments. Bank statements, outstanding indebtedness to creditors other than the government, amounts of mortgage or rental payments, auto loans, student loans, and hospital expenses are all taken into account. IRS counselors review the Offer in Compromise to determine a lesser payment amount that will be acceptable to the federal government. However, the Offer in Compromise is limited to a specific term. Defaulting on the OIC annuls the agreement; and the delinquent taxes become due and payable, plus interest and penalties.

Worrisome income tax problems can also be resolved through a third party. Financial management companies that specialize in resolution can advise and represent delinquent taxpayers. Many of these companies claim that they can negotiate with the federal government for debt settlements at pennies on the dollars owed; but consumers should beware. Resolution firms which charge exorbitant fees are probably fraudulent; and IRS penalties and interest may continue to accrue. Legitimate IRS tax resolution firms will have certain requirements. Delinquent tax payers must have a steady and stable income and agree to make monthly installments through the debt resolution agency. The immediate benefit to working with a professional tax resolution firm is that IRS collection efforts should cease and all correspondence can be handled between the firm and the Fed. The government is prohibited from seizing bank accounts, personal property, or real estate holdings to satisfy delinquent returns, as long as an acceptable repayment plan is in place. A competent consultant firm will make a detailed assessment of the delinquent taxpayers financial status and determine the monthly payments proposed to the Internal Revenue Service, plus a financial management or consultant fee.

Financial management consultants may advise debtors to borrow funds from a bank, credit union, lending institution, or family member to satisfy outstanding tax payments and avoid incurring mounting interest and penalties. Borrowed funds may be repaid at a lower interest rate than the IRS assesses; and the pressure of undergoing collection proceedings is alleviated. Second home mortgages may be an option for homeowners to meet obligations, if the new mortgage does not exceed budgetary limitations. The Bible admonishes us not to defraud the government, but pay whatever is owed. "Is it lawful to give tribute to Caesar, or not? Shall we give, or shall we not give? But he, knowing their hypocrisy, said unto them, Why tempt ye me? Bring me a penny, that I may see it. And they brought it. And he saith unto the, Whose is this image and superscription? And they said unto him, Caesar's. And Jesus answering said unto them, Render to Caesar the things that are Caesar's, and to God the things that are God's. And the marveled at him" (Mark 12:14b-17).

For distressed taxpayers, the best advice is to consult with the Internal Revenue Service about how to resolve individual or corporate income tax problems. The very worse thing to do is nothing. Acting as if the indebtedness doesn't exist will only compound the problem; and delaying proposing a workable repayment plan will result in mounting interest and penalties. Financial management consultant companies exist which specialize in IRS tax resolution. Debtors can browse the Web to find reliable consultants or check out the local phone directory. Delinquent taxpayers can apply for resolution by submitting an IRS Offer in Compromise to petition for debt settlement. Debtors should investigate potential companies claiming an ability to negotiate settlements at a fraction of the original debt. If claims sound too good to be true, they probably are. Check the local Better Business Bureau, or visit websites for background information before committing to any agreement for financial services. The IRS website also includes accurate information about available taxpayer options and contact information for local branch offices.

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