3 Tax Resolution Methods That Could Save You

When you get into trouble with the dreaded IRS, the only one who can save you is a tax resolution specialist. Why? Mostly because of the unique methods of tax resolution they employ.

In this article, we wanted to tell you about the best tax resolution methods used by specialists that will undoubtedly end up saving you. So, it doesn’t matter if your problem is a bank levy, lien, seizure, wage garnishment, or something else; one of these methods will solve your issue.

Installment Agreement

This is one of the most common solutions a tax resolution specialist could provide for you. They will work to get the IRS to agree to allow you to pay what you owe in smaller, monthly installments over a period as long as six years!

So, even with more substantial debts, you can still manage to pay them off by making smaller payments every month for a long time. Once your tax resolution specialist sets up an installment agreement for you, the IRS will cease all of their collection activities aimed against you.

In some cases, the specialist can prove that you are unable to pay your debts even through installments. In those cases, they can get the IRS to agree to a partial payment installment agreement. The PPIA is precisely what the name suggests; you will get to pay only a part of the total taxes you owe to the IRS. However, it only applies when you prove that you are unable to pay your debts before the statute of limitations on collecting taxes (ten years) expires.

Offer in Compromise

An offer in compromise or OIC is relatively similar to PPIA. It entails paying less than what you owe to the IRS. However, the IRS only accepts an OIC for one of the following reasons:

  • When it’s unlikely for the IRS to collect all of what you owe them in sufficient time
  • When the amount of the tax liability might not be the actual amount owed
  • When special circumstances arise which result in the tax liability causing economic hardships for the taxpayer

Penalty Abatement

When you get penalties from the IRS, your tax resolution specialist can ask for an abatement of those penalties. It’s essentially a process where your penalties are either reduced or eliminated by the IRS if there is ‘reasonable cause’ for it.

Now, determining the reasonable cause is not easy, but tax resolution specialists know all the rules the IRS has. This means that they can easily find a good reason for the IRS to allow penalty abatement.

Additionally, the IRS almost always allows for first-time penalty abatement for taxpayers who have previously always paid their taxes on time.

Key Takeaways

These three tax resolution methods can be very beneficial to the taxpayer, as you can see. If you hire a good tax resolution company like Golden Tax Relief, you will have no problems getting the IRS to agree to some of these life-saving methods.

If not that, then we can find another solution that will work to your benefit, as these three are not the only ones we have! What you need to do now is give us a call, and we’ll get on it as soon as possible.

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