Potential Tax Resolution Strategies: How To Make Tax Payments Affordable


Receiving a letter from the IRS can be an incredibly intimidating experience for taxpayers. Unlike many other government agencies, the IRS has the authority to wield considerable power over your finances. This includes their ability to garnish your wages, freeze your bank account, and in extreme cases, seize your property. These possibilities alone are enough to send a chill down the spine of any law-abiding taxpayer. Read on to learn about potential tax resolution strategies you can do to avoid enforced collection by the IRS.

Nevertheless, should you receive a letter from the IRS stating that you owe additional taxes, it’s important not to panic. There are steps you can take to settle your tax debt and get back on good terms with the IRS.

No matter the circumstances, being an informed taxpayer is crucial. Below are some potential tax resolution strategies you can consider to settle your tax debt and maintain your peace of mind. Remember, not all options will work for everyone, but knowing these strategies can bring you some reassurance. While the IRS may seem intimidating, they can be fair if you know how to communicate and handle the situation appropriately.

What to Do When You Receive a Letter From the IRS

Carefully Assess the Amount Owed and Review Your Tax Return

If you receive a notice from the IRS stating that you owe money, it’s important not to automatically assume their claim is correct. Mistakes can happen on both ends, whether it’s by the IRS, taxpayers, or even tax preparers.

Whether you filed your taxes independently or sought assistance from a professional, it’s crucial to thoroughly examine your tax return and compare it with the IRS’s claims. It is highly recommended to seek professional guidance for this review, even if you initially filed your taxes by yourself. An expert with experience dealing with the IRS may uncover errors or inconsistencies that you might have overlooked, potentially saving you money.

While this review may not completely eliminate the additional taxes that the IRS claims you owe, it’s worth the effort to ensure accuracy. Numerous taxpayers who believed they owed money to the IRS have discovered that they owe nothing or, in some cases, even received a refund from the agency.

Contact the IRS If You Disagree

If you disagree with the amount of taxes stated in your notice, it’s a good idea to reach out to an experienced tax professional before taking any further action. They can assist you in communicating with the IRS effectively. Additionally, they can guide you in developing a strategy for either making payments or amending your tax returns.

Pay the Amount You Owe By the Due Date

Paying the amount you owe by the specified due date mentioned in the notice is essential. By meeting this deadline, you prevent additional penalties or interest charges that the IRS may impose for late payments. However, if you cannot pay the full amount, you may consider the following tax resolution strategies for settling your tax debt. 

Potential Tax Resolution Strategies To Consider

1. Payment Plan

Receiving a notice of additional tax due from the IRS can be a frightening experience. This is particularly true if you lack the means to pay the claimed amount in full. However, it is crucial to remember that you are not necessarily required to settle the bill all at once.

The IRS is often willing to work with taxpayers by offering flexible payment plans. This option allows for a more manageable and less stressful approach to fulfilling your tax debt. Once again, it is highly advisable to seek professional assistance and guidance in this matter. Negotiating with the IRS can be challenging. You certainly do not want to find yourself locked into a payment plan that exceeds your financial capacity.

Failure to keep up with the agreed-upon payment plan may lead the IRS to take further enforcement actions. This may include wage garnishment or freezing your bank accounts. Seeking the help of a tax resolution professional upfront can help you steer clear of these serious consequences.

2. Offer in Compromise

In situations where you genuinely find yourself unable to afford the amount claimed by the IRS, there may be a possibility to negotiate a reduced payment. Although this program may not be widely publicized, the IRS often has a willingness to negotiate with taxpayers by accepting smaller payments, especially when individuals possess limited income and few assets. In some cases, qualified individuals can settle their tax debt for a fraction of the original amount owed.

If you opt to pursue this option, it is crucial to work alongside a tax resolution expert. Offer in compromise can be highly intricate, laden with legal jargon and complex terms that can be challenging to comprehend. Avoiding errors in this process is vital, ensuring that paying the compromised account will lead to the complete resolution of your tax liability.

Get Tax Relief

If you find yourself facing a tax debt that exceeds your ability to pay, there is a potential solution. Through our tax resolution services, we can help you prepare an Offer in Compromise or set up a payment plan with the IRS. This enables you to fulfill your tax obligations without having an adverse impact on your daily living needs.

At Tax Samaritan, we analyze your situation, taking into account factors often overlooked by the IRS. We will provide secure fair treatment and tax assistance tailored to your needs. Through a thorough examination of the relevant facts, we develop a customized action plan to minimize your tax liability and provide clear explanations of your situation and available options.

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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