A Tax Resolution company is a tax business that specializes in resolving back tax debts for individuals or businesses with the IRS and State. Unlike your normal tax offices like H&R Block or CPAs who only deal with current year tax returns, Tax Resolution companies file back tax returns and resolve tax debts. Dealing with the IRS can be time consuming and complex, Tax Resolution companies offer an important service to the public to help resolve their tax debts using professionals. These professionals consist of, Tax Attorneys, IRS Enrolled Agents, or CPAs. Though every case is different, the typical case goes through the following process.
Typical tax resolution process
- IRS Investigation: This is where the tax resolution company will file an IRS Power of Attorney (Form 2848) to establish communications with the IRS. A transcript analysis will be done to see what the IRS is looking for and what they have on record for you.
- Tax Compliance: Missing tax returns will be filed based on transcripts obtained and possible deductions.
- Tax Resolution: Tax professionals will then analyze your financial situation, and ability to pay, to choose from the following IRS options.
- Offer in Compromise (Settlement) Form 656, and Form
- Currently Non-Collectible Status
- Partial Pay Installment Agreement
- Installment Agreement
- Penalty Abatement
Clients of tax resolution companies usually know they are falling behind on their tax bill, however the IRS can be scary and tricky to deal with. Tax professionals from the tax resolution industry play a vital role in helping taxpayers navigate the maze of tax. The industry can be scammy with companies praying on the fear taxpayers have of the IRS. Research is key in looking for a company to work with. Talking to the professional handling you case is crucial to the success of your case being resolved.
If you are facing collection actions from the IRS, having essential knowledge about all your options is vital. With help from the professionals at EA Tax Resolutions, you can be sure to get the help you deserve. If you have any questions or concerns don’t hesitate and call a professional at EA Tax Resolutions to help you.