Businesses or individuals who must address outstanding tax debts to the IRS may need tax resolution services. However, deciding when to work with Dallas tax resolution specialists can be hard. However, hiring a tax expert sooner than later allows you to start addressing the problem early, increasing your chances of getting a favorable resolution.
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When to Hire Tax Resolution Services
A lot of people in Dallas wait until they face an issue with the IRS before they hire a tax expert to help them. If you have gotten an IRS notice that you owe them unpaid taxes, penalties, or fees, work with a tax expert who can identify the seriousness of the problem and help you resolve it. Waiting longer can only increase your possible penalties.
The best time to work with a tax expert is after you have received an IRS notice. Under the law, the IRS should notify you that you’re in default. The agency should provide you with time to contest or appeal the tax amount owed. By working with a tax resolution specialist at this point, they can examine your taxes and evaluate the accuracy of your tax bill.
At this stage, negotiation with the IRS may still be possible. Maybe you can still develop a repayment plan that works for you or contest the bill’s accuracy according to your tax return. But for this to happen, your tax resolution partner should understand the issue fully and you have paid attention to the requests of the IRS to address the problem.
Why Hiring Tax Resolution Services is Important
Hiring tax resolution services is essential in any of the following situations:
- If there is a pending levy or lien. Leaving a tax bill unpaid for a long time will result in the IRS placing a lien on your property or a levy against your bank account. The agency will demand payment for any assets you have. At this point, negotiating a settlement is more challenging since the IRS has to use force to collect the tax you owe. A tax expert can help you resolve the problem by communicating with the IRS for you and renegotiating a payment plan. While you may have to deal with the tax bill’s full weight, you can work to decrease your monthly repayment.
If you think the repayment plan will be a financial burden, you must prove your incapacity to make the payments. A tax expert knows the type of documentation to make a solid case and how to take it to the tax department for further consideration. This job is something you should not try to do by yourself.
- You have not filed taxes for years. If you are in this situation, a tax expert can examine your books and re-make the returns that you should have filed in such years. You can file the late returns and pay the penalties for not meeting the filing deadlines. Re-making historical tax documents is time-consuming and hard and you may not be able to complete it without help. But to resolve the issue, a tax expert must know what you owe in such years and any late fees or penalties to pay. This expert can have all or some of the penalties removed. But this is only possible if you can demonstrate that you had a reasonable reason for not failing to file your returns. The number of penalties that can be removed depends on the total tax amount you owe, for how long it remained unpaid, and whether the tax agency assessed the penalties.
If you have significant unpaid taxes, call a tax professional who can help you work toward a resolution. Waiting to resolve your tax-related issues will only make it harder to get out of the situation.
