There are numerous types of tax issues, including those involving the Internal Revenue Service, certain states, and sales taxes. Each year, tax authorities do more audits and collections to make sure people are following the law.
When a taxpayer learns that his or her tax return or business will be audited, he or she should immediately seek competent tax guidance. If a taxpayer receives a tax levy letter for their bank account or a collection letter threatening to levy and garnish their wages or paychecks, they should seek out professional tax relief assistance to resolve their tax issues. Here are some of the most popular solutions to tax issues:
Full settlement
Paying the amount listed on the tax notice and avoiding issues with the tax agency. Typically, this is not the greatest option for the taxpayer because the tax bill is not accurate.
Due are only those taxes that must be paid
Generally, if you can afford it, the best solution to a tax issue is to pay your taxes in full. This will involve collaboration with the taxing authority to reduce the fine. A request to decrease a punishment is admissible only if there is a valid cause for doing so, not if the individual disregarded the regulations.
The Plan for Making Partial Payments
Commonly, tax issues are resolved through an installment plan in which the tax amount is paid over time. Because the government typically requires a large monthly payment, you should consult a tax professional. Tax attorneys will devise a payment plan that is affordable and does not place an undue financial strain on your family.
Plan for the Payment of Unknowns
The taxing authority will typically accept an offer in compromise if the amount given to settle your tax problem is equivalent to or greater than the taxpayer’s RCP (OIC). The IRS, the state, or the sales tax agency use forms 433-A for individuals and 433-B for corporations to calculate RCP.
Regardless of the optimal method for resolving tax issues, the taxpayer must continue to comply with the legislation. That is all tax returns and estimated income taxes and payroll deductions must be filed and paid on time.
