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What Are Tax Resolution Services?

Written by prositesfinancialFeb 13 • 3 minute read

tax resolution services

Filing simple tax forms is a straightforward process, but sometimes matters are complex and require the services of a seasoned professional. Millions of Americans struggle each year to pay what they owe the IRS, and many are facing other challenges such as late or incorrect returns. Individuals and businesses experiencing diverse tax challenges can benefit from using tax resolution services. 

Benefits of Tax Resolution Service

This is a service offered by tax resolution professionals and is meant to develop and implement a solution to solve tax problems. The optimal solution will solve the problem permanently and settle the tax liability for the lowest amount required by law. 

Mediation with IRS

Going up against the IRS is daunting for an ordinary taxpayer. However, you do not have to deal with the IRS yourself. One of the most significant benefits any taxpayer can take advantage of is hiring a tax resolution professional to mediate for and represent them in IRS matters. A professional who has the experience and expertise in handling anything that pertains to the IRS can assist with:

  • Gathering and submitting the required paperwork
  • Making sure the taxpayer’s rights are protected and observed
  • Speaking on behalf of the client during IRS audits and hearings
  • Handling all communication from the IRS
  • Filing tax returns 

Eliminating Penalties and Interest

Tax debt owed to the IRS can include hefty interest and penalties. A tax resolution professional can negotiate on a client’s behalf and use the relevant tax code to their advantage to have penalties and interest significantly reduced or written off entirely. 

Avoid Garnishments and Levies

The IRS wields enormous power in its ability to lay claim to a defaulting taxpayer’s money and assets. It does not have to seek a court order to levy or garnish property or income. It can also seize more than what is legally allowed by most states in a garnishment or levy case. 

A taxpayer can prevent their assets or funds from being seized to settle their tax debt by using tax resolution services. An experienced tax professional will negotiate a payment arrangement, prove financial hardship, or propose other ways to resolve a client’s tax debt. 

Settling Tax Debt for Less

A tax professional stays abreast of all the current tax codes and laws to minimize IRS debt. If a taxpayer owes the IRS excessive amounts of money, tax resolution services can help reduce their liability as much as possible. The tax professional can also make an Offer in Compromise (OIC) by proving the ability to repay the debt is improbable. 

Tax Deductions and Exemptions

As a business owner, you are legally entitled to claim certain tax deductions and exemptions. However, a taxpayer may not be aware of all the deductions and exemptions available to them and how to claim them on their tax return. A tax resolution professional is familiar with all the options and include then in your return. Some standard deductions include:

  • Business-related travel
  • Home office deductions
  • Equipment purchases
  • Employee benefits
  • Depreciation

Handling Business Contracts

Tax resolution services are invaluable when handling business contracts. If a business is negotiating new contracts, it critical that a tax resolution professional reviews them first so that the company avoids taking on unnecessary tax burdens that it cannot afford. This professional service also comes in handy in the acquisition or selling of a business. Such transactions come with tax implications for the business owner. A professional can help minimize the tax burden and avoid taking on the liabilities of the other party in the transaction.

The most obvious benefit of using tax resolution services is having all your IRS issues handled by a professional. The amounts and types of taxes you are expected to pay depend on your location and circumstances. With the high visibility provided by today’s internet technology, you can find a professional specializes in the specific service you need. Do as much research as you can and talk to others who have needed the same services to find the right tax resolution expert for your individual or business needs. 

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