Follow the Tax Resolution Process in 7 Easy Steps

Tax Resolution Process in 7 Easy Steps

The Internal Revenue Service (IRS) informing you of a tax audit, tax levy, or tax lien can be a frightening experience. The idea of fixing these tax problems is even more frightening, especially if you aren’t familiar with tax laws and how the IRS works. 

Whether you live in the U.S. or abroad, there is nothing more frustrating than having to take the familiar step of properly filing your taxes and dealing with the IRS. However, receiving a notice from the IRS doesn’t mean you’re guilty of any crimes, so resolving your tax issues doesn’t have to be a daunting task. Tax resolution services are available to help you defend yourself against IRS enforcement. 

Qualified tax resolution companies can help solve tax problems such as audits, levies, or liens—all of which require careful analysis and action. Besides properly assessing your situation, tax resolution specialists can also speak on you or your business’s behalf and determine the best tax resolution for you. 

7 Easy Steps Towards Tax Resolution

Although dealing with the IRS is rarely a straightforward process, learning about tax resolution and the steps to achieve it can make the process easier. This knowledge ensures that you’re in line with tax laws and you don’t have a bad reputation with the IRS. Here are seven steps you can follow to achieve tax resolution.

1. Work with a tax resolution specialist

Consider hiring a tax resolution specialist to help you figure out what went wrong and help resolve significant tax issues. Tax resolution professionals can perform a wide range of services, such as formulating an ideal tax resolution plan, negotiating for more affordable tax payment plans, and providing valuable tax advice and guidance. 

When hiring a specialist, make sure to look for professionals who have significant experience, qualifications, and credentials. Credentials are required for any provided resolutions services – the specialist must be an Enrolled Agent (EA), CPA or attorney.

2. Tax problem analysis 

It’s essential first to take note of what precisely the IRS needs from you. For instance, knowing what tax returns are missing and required to be filed and the collection process stage you are in will help you better understand your tax problem.

Provide your tax resolution specialist with a clear and honest explanation of your tax situation, copies of tax notices received, and discuss all options available. Your specialist will need necessary documents that show what comprises your tax bill, including penalties and interest. The specialist will then assess your tax situation and determine the best course of action to fix your tax issues.

3. Gather documentation

To help with the process, you need to compile the necessary information and documents for the recommended resolution to your tax problems. This includes a list of all your assets, liabilities, income, and expenses. Necessary documents also include tax return transcripts, account transcripts, record of account, and verification of non-filing.

4. Tax resolution preparation

After compiling and submitting the necessary documentation, your tax specialist will figure out optimal resolution and an estimate of how long it will take to resolve. The ideal tax resolution solution depends on the information you submit and the options your tax specialist will explore. The solution should be based on what you can afford to pay and how you can settle for the least amount possible.

5. Compliance and negotiation

The IRS will not consider any offers nor negotiate any settlements until you file all necessary tax returns. You can pay your taxes in full and add the deductions to minimize the amount you owe. 

If you want to settle tax debt, you can choose not to include the deductions. Your tax resolution specialist can advise you on the best solution to reduce the amount of money you will pay. 

Once your tax resolution specialist submits the Proposal for Resolution to the IRS, you’ll be protected from levies and seizures while they review the case and proposal. The amount of time to reach a resolution varies. Your tax specialist will also have to negotiate with the IRS. Negotiation is usually a back-and-forth process as the IRS may require additional documentation.

6. Settlement

Negotiation often leads to an Installment Agreement, Offer in Compromise, Currently Not Collectible Status, or Penalty Abatement. Eventually, a compromise or some settlement will be reached, ending any liens on your property. You may get a desirable result; however, you may also try for a better result by appealing the decision on your case. 

7. Achieve tax resolution

Once a mutual resolution is agreed upon, the tax resolution specialist will guide you to the end of the process and help end your tax problems for good. Although achieving a tax resolution doesn’t guarantee that you won’t experience tax problems in the future (a lot depends on your future compliance), it can certainly offer a big relief after a long and tedious process.

Tax Resolution isn’t an Impossible Feat

If the IRS spots a tax issue in your record, it can cause tremendous stress. Whether you file your own taxes or seek the help of a professional, tax resolution will remain a complicated issue—so you want your taxes done right. 

However, even though a successful tax resolution is different for every taxpayer, tax resolution can be attainable. With the help of tax specialists, you’ll be able to analyze your financial information and determine what exact resolution is best for you.

You can be free from your tax troubles for good if you’re willing to invest the time and effort to do so. Dealing with the IRS shouldn’t be taken lightly. Nonetheless, hiring a tax resolution specialist and knowing the practical steps towards tax resolution can be an easy means to reach financial freedom.

If you’re looking for a reputable tax resolution partner, Tax Samaritan offers the best-in-class service. Understand all the facets of and resolve your tax situation and problems today.

All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.

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