Tax Resolution: Do it Yourself of Hire a Professional Company for Assistance?
While some tax situations are remedied quite easily, other tax situations are a bit more complicated and require the assistance of a tax relief attorney or tax resolution service to guarantee a favorable outcome. In most scenarios, utilizing either a tax relief attorney or tax resolution service will provide a more improved solution than if you had attempted to resolve complicated tax problems by yourself and without professional assistance. The information below provides you with a variety of tax troubles that can be handled without the need for professional help, as well as tax problems that require professional assistance.
Tax Problems You Fix Yourself
There are many tax problems that are common situations that an individual is able to handle on their own without a large degree of difficulty.
Not able to pay your taxes in full. If you are currently in possession of a tax liability that is greater than what you are able to afford at one time, the IRS provides multiple opportunities to make many smaller payments over a period of time. This is a simple problem that you can do on your own. If you owe less than $25,000 in taxes, fill out Form 9465 and ask for an installment agreement.
Did not file taxes but no money is owed. If you neglected to file your taxes, however, you do not currently owe any money to the IRS, all you are required to do is file taxes and do a late submission. If you find that you need assistance doing this, utilize a professional tax preparer to assist in getting together the correct information to ensure smooth filing of taxes.
Cannot file taxes by the time the due date period arrives. If there is a situation that makes it impossible to file taxes by the due date in April, ask the IRS to file an extension. This IRS tax extension gives you additional time for completing paperwork and filing taxes. It is essential to understand that you will still be expected to pay any owed taxes by the date the filing is due. If you do not file by then, penalties and interest will be added to the total amount due until it is paid in full.
Tax Problems That Require The Assistance of A Tax Resolution Service
If you are saddled with a more complex tax dilemma, it is beneficial to retain the services of a tax relief attorney or tax resolution service to assist in solving the dilemma. Below is a list of common problems where it is highly advocated to seek out professional assistance rather than doing them on your own.
Numerous Years of Unfiled and Unpaid Taxes. It becomes a serious issue if you have unfiled taxes, as it will increase the overall sum owed to the IRS because of unpaid taxes, interest, and penalties incurred. In these situations, it is highly advocated to utilize a tax resolution service or tax relief attorney to assist in locating the best method for tax settlement. These methods can involve offer in compromise, installment agreement, or penalty abatement. If you have unfiled taxes but you know your returns are standard, without complicated issues, you can seek the assistance of a CPA or an enrolled agent to assist in filing taxes and saving money.
Unable to afford the monthly payments required in an installment agreement. If you have filed for an installment agreement as the settlement option chosen to pay off unpaid back taxes, but have learned that you are unable to afford the monthly payment, the assistance of a tax resolution service will be beneficial. They have vast knowledge in multiple options of tax relief, and can assist in figuring out your eligibility for another method, such as financial hardship, offer in compromise, or an option for a partial payment agreement.
Tax evasion. Tax evasion is a severe tax offense that requires the assistance of a tax attorney to help navigate through the consequences set up by the IRS for those actions. A tax attorney will assist in lowering the possibility of severe penalties which can include financial penalties and even time in prison. A tax relief attorney will assist in removing penalties if a good, solid reason is presented on why you have not complied with IRS tax regulations.
Engaged in tax fraud. If you have hid or understated income, claimed false deductions, or any other actions aimed toward committing fraud, you will most certainly require the assistance of a tax relief attorney. Only a tax attorney is able to minimize penalties. They have a good understanding of the inner workings of tax court and will locate the most advantageous approach when handling this type of situation.
Tax levy. To decrease the financial impact of a tax levy on your personal assets, you are required to act quickly. A tax attorney will assist in stopping the levy before large assets are affected, such as bank accounts, retirement accounts, automobiles, and real estate. Attempting to resolve a tax levy on your own will not get you very far.