The Tax Resolution Process: What to Expect

The tax resolution process is known to be a very intimidating and overwhelming process, but that is not the case at all times. For both individuals and companies, there is a procedure to be followed for resolving the debt that is owed to the IRS. The following is a step-by-step guide that can be incorporated into the tax resolution process.

Step 1: Acknowledge the Issue

The first step in the tax resolution process is acknowledging that you have a problem. This means understanding that you owe back taxes and that there will be consequences if you don’t take action. The longer you wait to address the issue, the more severe the consequences will be.

Step 2: Determine Your Options

The second step is to determine your options for resolving the issue. Depending on your circumstances, you may be eligible for a payment plan, an offer in compromise, or other tax relief options. It’s important to speak with a tax professional who can help you understand your options and determine the best course of action.

Step 3: Contact the IRS

Once you’ve determined your options, it’s time to contact the IRS. This can be done through a phone call, a letter, or online. You’ll need to provide your tax information and explain your situation. If you’re working with a tax professional, they can handle this step for you.

Step 4: Negotiate a Resolution

After you’ve contacted the IRS, you’ll need to negotiate a resolution. This may involve submitting financial information, making a payment plan, or negotiating an offer in compromise. Your tax professional can help you navigate this process and ensure that you’re getting the best possible resolution.

Step 5: Implement the Resolution

Once you’ve negotiated a resolution, it’s time to implement it. This may involve making payments, submitting paperwork, or taking other steps to ensure that you’re meeting the terms of your agreement with the IRS. It’s important to stay on top of these requirements to avoid any further issues.

Step 6: Maintain Compliance

Finally, it’s important to maintain compliance with the IRS moving forward. This means staying up-to-date on your taxes, making payments on time, and ensuring that you’re meeting any other requirements outlined in your resolution agreement. If you fail to maintain compliance, you may be subject to additional penalties and consequences.

Overall, the tax resolution process can be complex and time-consuming, but it’s important to address the issue as soon as possible. Working with a tax professional can help you navigate the process and ensure that you’re getting the best possible resolution. By acknowledging the issue, determining your options, and working with the IRS to negotiate a resolution, you can get back on track with your taxes and avoid any further consequences.