Tax Resolution: What You Would Want To Know About Tax Resolution

When it comes to tax resolution issues, there are several questions that fill the mind of taxpayers. It can be devastating to default on tax; this is especially true when the IRS come knocking on your door. However, with the assistance of a trusted and qualified Attorney, you can successfully resolve your tax issues with the IRS without losing any of your belongings.

Here are issues you may seek to obtain clarification as it pertains to tax settlement;

" What Happens When I Am Not Able to Pay my Back Taxes at a Time?

The truth is that most people cannot pay their back taxes at a go. This is where the services of a qualified tax negotiator is needed; they work to decrease the total amount of taxes you are indebted with by structuring a monthly payment that will be affordable for you while also protecting your assets.

" Tax Liens - What Can I do about them?

Based on the tax lien's size that is secured, the taxpayer can move to pay off the debt if the fund is within his disposal or if the fund can be borrowed. Now and then, this can be achieved through direct negotiation with the IRS for a compromise to be reached on the secured value of the lien. But some other times, the taxpayer may have to embark on bankruptcy options; such options could be paying off the value of the secured debt in chapter thirteen plan. Subsequently, an action in court may be required to ascertain the worth of the collateral and therefore, the equity to which the tax lien attaches. Other times also, a confrontation to the soundness of lien may be provided; but this is if arguments are in place such as: there was no record of tax lien though the tax agency states that there is; the record of the notice was done subsequent to effecting the automatic stay; the filing of the asset was done to assets that are not the taxpayer's own; the assessment on which the lien was based is invalid; expiration of the lien.

" What is the Estimated Time for Successful Negotiation of a Tax Resolution or Settlement with IRS?

Generally, the duration of settling with the IRS is about seven months. The tax negotiation needs to collate proofs for the case of which financials for an Offer in Compromise plus a narrative for penalty abatement is included; this procedure alone may take up to 30 days or 1month. Then, it takes about 3 to 4 months for IRS to review the offer after it has been submitted. The offer is subject to acceptance or refusal; if refused, it could take another 2 months to appeal the judgment.

" What about Credit Report?
An Offer in Compromise does not require a credit report like the bankruptcy or credit card charge; in essence, it is not reported to the credit reporting agencies. Your credit will not be negatively impacted by your credit score. But then, if you overlook the problem, the IRS will be forced to file a notice of federal tax lien with the taxpayer's county recorder and this will reflect on that individual's credit report.

By: Alex cpasolutions

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Alex Polovinchik is the author of this article on Tax resolution. Find more information about Tax problems here.