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Whether you are an individual or business owner, you have a legal obligation to file taxes correctly. This important responsibility can affect your financial health. And no matter your experience in filing taxes, you need to avoid making mistakes. Professional tax resolution services in Dallas can help you address common tax issues and navigate the complexities of the tax system.
Tax resolution is meant to help you resolve back tax issues. If you are like other taxpayers, you probably seek help after you have ignored the issue so long that the tax agencies have lost patience and decided to use force to collect unpaid taxes. Their recovery efforts can include placing a tax lien on property or a levy against your bank accounts.
Signs that a Levy May Occur
Before a levy can happen, the tax agency will notify you about the action they will take against you. The IRS will try to reach out to you through written notices. You can appeal or contest such notices, so the levy does not happen. If the levy happens and gives you financial hardship or you make a payment plan with the agency, it can be released before the removal of the funds from your account. If you ignore the notices from the IRS, you may get phone calls or visits from a collection officer or agent. Instead of ignoring such communications, communicate with the IRS and work toward a resolution.
What to Expect from Tax Resolution Experts?
A tax resolution expert will evaluate your tax issue’s entirety and speak for you or your company. They know what’s permitted on financial disclosure and can analyze your financial data to determine the resolution you are eligible for.
A lot of taxpayers may be eligible for an installment agreement. Although it may seem strange to pay previous taxes along with current ones, your tax representative can negotiate the lowest installment payments possible by arguing that you can’t afford to pay more.
Communicating with the IRS
Once the IRS makes contact, they will usually inform you what you owe them and ask you to repay your liability. The agency recognizes that the majority of taxpayers who have outstanding tax debt cannot repay it all at once. So, they often offer a few resolution options. However, to qualify for other options, you should be current and compliant. This means that you have filed all your previous returns. Also, you should stay compliant on all filings to keep an installment agreement. Any tax due like self-employment estimated payments and scheduled payroll deposits should be paid promptly to avoid the termination of the installment agreement.
To successfully resolve back taxes, you must file all missing tax returns and ensure you do not accrue more taxes. Sadly, this step is often hard to accomplish for any business.
To file years of missing tax returns, a business must have well-documented financial records that demonstrate its income and expenses. A lot of business owners in this situation fail to do so. Without such data, you may feel helpless since you do not know where to begin preparing years of records. Without basic financial data, a tax preparer cannot complete an accurate tax return. Preparing a return with guesswork increases the risk of fines, penalties, and audits. When resolving unfiled returns, perform historical bookkeeping to file back taxes.
Steps to Take After Being Current and Compliant
After you have filed all tax returns and determined the scope of your liability, determine your ability to repay what you owe the tax agency. To make such a determination, the agency will ask you to complete a financial disclosure. The process becomes harder to comply with at this point. This is where a tax resolution expert can help you.
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