5 Complex Tax Problems that Can Be Solved by a Mediator
Complicated tax issues sometimes require the help of a mediator or a tax firm with experience and success negotiating directly with the IRS. Communication is key when it comes to trying to reduce the amount of money you owe the IRS, or settle difficult problems like back taxes. There are many problems that can more easily be solved with the help of a neutral party; so, if you are faced with any of the following tax issues, consider seeking help rather than tackling the problem on your own. Your outcome is likely to be better and your headaches lessened in the process.
1. Back Taxes:
If you are behind in paying your taxes or filing your returns, it is critical that you come up with a plan and a response for the IRS. A mediator with tax experience can review your documents to be sure that the amount you owe is actually an accurate representation of your debt. If it is, a tax firm or mediator can help determine the best course of action for making payment. It is important to note that if you have already received a written notice from the IRS about your back taxes, you want to respond quickly to avoid additional fees and interest.
2. Offer in Compromise:
An offer in compromise is an agreement made with the IRS when you are cannot to afford to pay your tax debt. The paperwork for this program is extensive, complicated and a tax expert may be especially helpful to make the best case for you. The IRS understands that there are circumstances in which individuals just simply cannot pay their debt. In these cases, it is better for the IRS to get a smaller amount of the debt, rather than no money at all.
3. Installment Agreements:
If you are unable to pay your tax debt in one lump sum, and paying over time would be more feasible, an installment agreement might be a good option for you. Again, this type of agreement requires careful communication with the IRS. A tax firm or tax mediator should have experience in this area.
4. Stopping levies, liens or wage garnishments:
If the IRS has been in touch with you about back taxes, the next step may be a levy, lien or wage garnishment. This means that the IRS could begin taking money from your bank account, your paycheck or use something that you own (car/home) as collateral on your debt. This can cause significant disruption in your cash flow and have significant impact on your credit score. A mediator or tax professional can help you avoid or stop levies, liens or garnishments.
5. IRS Audits:
If the IRS has been in contact and let you know that they will be conducting an audit on your personal or business tax returns, you would be wise to seek help from an expert. Audits are fairly uncommon, but if you are chosen, it is important to get your documentation in order and be sure to present your returns clearly and accurately. A third party (mediator or tax professional) can help with the communication between you and the IRS.
If you need help negotiating a situation with the IRS, contact the tax experts at Success Tax Relief at (702) 566-8326. Our knowledgeable staff will quickly survey your unique situation and help you determine the best course of action. We have helped thousands of customers all over the country with all types of tax problems and look forward to helping you!