The Ultimate Guide to Tax Resolution

Introduction

Taxes are an essential part of modern society, as they provide the government with the revenue needed to fund public services and programs. However, tax issues can be a significant source of stress and anxiety for individuals and businesses alike. In this guide, we’ll take a look at tax resolution and what you need to know to resolve any tax issues you may be facing.

What is Tax Resolution?

Tax resolution is the process of resolving tax issues with the IRS or state tax agencies. Tax issues can include unpaid taxes, back taxes, tax liens, wage garnishments, and other tax-related problems. Tax resolution can involve negotiating with the tax agency to settle a tax debt, setting up a payment plan, or even pursuing legal action.

Types of Tax Resolution

There are several types of tax resolution options available, depending on the nature and severity of your tax issue. Some of the most common tax resolution options include:

1. Offer in Compromise (OIC) – An OIC is a settlement agreement between a taxpayer and the IRS or state tax agency that allows the taxpayer to pay less than the full amount owed.
2. Installment Agreement – An installment agreement is a payment plan that allows taxpayers to pay their tax debt over time.
3. Currently Not Collectible (CNC) – A CNC status is granted by the IRS or state tax agency when a taxpayer cannot afford to pay their tax debt and is experiencing financial hardship.
4. Innocent Spouse Relief – Innocent Spouse Relief is a provision that provides tax relief to a spouse who filed a joint tax return with their partner and was unaware of any errors or discrepancies.
5. Taxpayer Assistance Order (TAO) – A TAO is a request for assistance made by a taxpayer who is experiencing an immediate threat of adverse action by the IRS or state tax agency.

Steps for Tax Resolution

If you’re facing tax issues, it’s important to take action as soon as possible. Here are the steps you can take to resolve your tax issues:

1. Gather all necessary tax documents, including tax returns, W-2 forms, 1099 forms, and any correspondence from the IRS or state tax agency
2. Determine the type and severity of your tax issue, and consider consulting with a tax professional for advice and guidance.
3. Contact the IRS or state tax agency to discuss your options for tax resolution.
4. Consider submitting an Offer in Compromise, setting up an installment agreement, or pursuing other tax resolution options that may be available to you.
5. Comply with the terms of any agreement or arrangement you make with the IRS or state tax agency, including making payments on time and in full.

Conclusion

Dealing with tax issues can be stressful and overwhelming, but with the right knowledge and guidance, you can take steps to resolve your tax issues and get back on track. If you’re facing tax issues, it’s important to take action as soon as possible and consider working with a tax professional to help you navigate the complex world of tax resolution.