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Confused by the IRS?

You’re not the only one. The complexities of dealing with the IRS can be very frustrating.

The IRS wants to change that however! The IRS wants to make the process easier to understand. So, they have provided a summary which you can use to resolve your tax problems. Just click in this hyperlink to get started:

You should understand that this is graphic is a just a summary. Resolving a tax problem with the IRS can be more complex but at least this is a good start.

As always, if you need help with the IRS or the State of Michigan feel free to give us a call

There have been a lot of stories about surprised taxpayers this year, and many of those surprises were decidedly unpleasant. Taxpayers who had received large refunds for years were shocked to find that they owed the IRS money this year, sometimes thousands of dollars in additional taxes due.

Still others were shocked to find an IRS notice in their mailboxes – a formal letter detailing an additional tax liability and demanding payment for taxes due. These IRS notices can leave even the most conscientious tax filer blindsided – and wondering what to do next.

Whether you expected a refund and received a bill or found a notice from the IRS lurking in your mailbox, what you do next matters a great deal. Here are some critical steps to take if you owe money to the IRS, but before we jump in, we encourage all readers facing a tax problem to contact us for a free consultation.

Stop Panicking

There is no scarier piece of mail than a notice from the IRS, especially if that notice comes with a big tax bill attached. Even so, a notification of additional taxes due is no excuse to panic and worrying will not make the problem go away.

So calm down, think rationally and plan your next steps carefully. There are right and wrong ways to address the issue, and the steps you take next could make all the difference.

Double-Check Your Math and Gather Your Documents

Something as simple as a transposed number or mismatched form could trigger a notice from the IRS, but the good news is these problems can be easy to resolve. Before you do anything else, go back to your original documents and double-check your numbers.

Compare the 1099 forms and W2s you received with the numbers you entered on your return. If there are inconsistencies and errors, you may be able to simply file an amended return and resolve the issue.

Contact A Tax Resolution Firm

Your tax preparer can be a big help when you receive an audit notice or demand for additional taxes from the IRS, but chances are they won’t know how to negotiate with the IRS nor will they fully understand your options for tax relief.

Working with a firm that specializes in tax debt relief and tax resolution, you’ll be able to map out a plan to get your back taxes taken care of.

Ask About Possible Penalty Forgiveness

Changes to the tax code have left many taxpayers owing money to the IRS when they expected to be cashing big refund checks. The limitations in the deductibility of state and local taxes, coupled with updates to the withholding tables, have left millions of taxpayers in this situation.

The IRS has taken notice, and the tax agency has been waiving underpayment penalties and interest for many of the affected taxpayers. If you are completing your tax return and find that you owe money to the IRS, contact the agency (or ask our firm) about possible waivers for part of the amount due. You will still be responsible for the taxes you owe, but you may be able to get relief from any penalties and interest.

Seek Payment Arrangements with the IRS

Owing money to the IRS is frightening, but the tax agency is not entirely lacking in compassion. The IRS knows that many taxpayers will have trouble making their payments in full, and the agency may be willing to set up a more affordable payment plan.

If you receive a surprise tax bill you should try to pay what you owe, assuming it’s correct and your tax preparer already lowered your tax liability to the lowest amount allowed by law.

If you are unable to pay what you owe, contact our firm and we can help you setup a properly structured payment plan that can save you a lot in the long run.

Keep in mind you could be on the hook for additional penalties, as well as interest on your outstanding balance.

Owing money to the IRS is scary and having a large tax liability can wreak havoc with your finances and your life. Even so, there are things you can do to ease the burden, so you can pay what you owe and send the IRS on its way. The steps outlined above can help you get a handle on the situation, so you can rest easy and stop worrying about your tax bill.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.

Three of the most frightening words in the English language are Internal Revenue Service. Few government agencies can strike fear into the heart of citizens like the IRS, and the tax agency enjoys powers most parts of the government simply do not have.

Unlike those other government agencies, the IRS has the ability to garnish your wages, freeze your bank accounts and seize your property. If you owe money to the IRS, doing nothing is simply not an option.

But should you negotiate with the agency on your own, or is hiring a tax resolution expert the better choice?

As an expert Tax Resolution Firm ourselves, we encourage all readers facing a tax problem to contact us for a free consultation.

But let’s dive into the pros and cons of hiring a tax relief firm so you can decide for yourself. 

The Benefits of a Tax Resolution Service

If you owe back taxes to the IRS, there are some definite benefits to hiring a tax resolution service. These companies exist for a reason, and they can provide a way out for taxpayers who feel overwhelmed by the whole process. Here are some of the biggest benefits of working with a tax resolution service.

#1 You will not have to deal with the IRS directly. No one likes dealing with the IRS, and when you work with a tax resolution service, you will not have to. You interact solely with the tax resolution service, and they deal with the IRS on your behalf.

#2 You gain years of expertise. The best tax resolution services are staffed with tax experts, men and women with a deep knowledge of the tax code and how it works. This specific expertise could be the key to getting the best deal, one that saves you money while avoiding the wrath of the IRS.

#3 It could help you resolve your tax issues more quickly. Having an IRS problem hanging over your head is stressful and unpleasant, and the sooner you get it resolved, the better. Engaging with a tax resolution company could help you resolve your IRS problems faster, so you can get on with the rest of your life.

#4 You could strike a better deal. Negotiating with the IRS on your own can be intimidating, and the tax agency may not offer you the best terms. Tax resolution services are used to dealing with the IRS, and they may be able to drive a better bargain.

The Potential Drawbacks of Tax Resolution

Working with a tax resolution service makes sense on many levels, and taxpayers can enjoy a number of important benefits in the process. Even so, there are some potential pitfalls to working with such a company, and you need to weigh the pros and cons yourself. Here are some of the possible drawbacks of working with a tax resolution company.

#1 You will typically have to pay a fee. Nothing in life is free, including tax resolution services. You will generally need to pay a fee for these services. If you owe less than $10,000 then it might make more sense to handle the case on your own.

#2 Not all companies are reputable. The world of tax resolution services can be a difficult one to negotiate, and not all services can deliver what they claim. It is important to do your homework and choose your tax resolution provider with care.

#3 It can take time for your case to be resolved. While some tax problems can be resolved almost instantly, others could take months, maybe even years to work through. Whether you hire a tax resolution service or not, you need to be prepared for a long journey.

#4 You will be giving up some control. When you hand your tax problems off to a third party, you also hand off control of your tax situation. This can also be liberating knowing that someone else has your back and their job is to help you find tax relief.

Whether you receive a big tax bill instead of the expected refund or owe thousands of dollars in back taxes from an audit, dealing with the IRS is no fun. The desire to hand that task off to an expert is certainly understandable, and in many cases, it is the best move you could make.

Now that you know the pros and cons of working with a tax resolution service, you can make the wise choice – and put your tax problems behind you.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.