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What is Tax Resolution and When is it Necessary?

Posted by Michael Raichelson | Mar 06, 2018 | 0 Comments

A tax resolution is something you might need. It's a service that could require you to protect yourself when using it. Tax resolution is there to help you when needed, but it is crucial to make sure your tax resolution specialist is someone you can trust.

Know why you need it

There's a lot of buzz surrounding tax resolution. The service is best defined as the effort on behalf of a legal tax professional to resolve your tax debt. Do not wait until your wages are garnished or your bank account is levied. Get ahead of the curve and hire a tax professional before adverse consequences occur and act immediately when you receive a notice from the IRS.

Think of a tax resolution specialist as your advocate when you owe an amount of current or back taxes to the Internal Revenue Service (IRS). Your tax debt is related to your federal or state taxes.  You may have a tax debt if you underpaid your taxes or the IRS has assessed higher taxes for any given year.

Tax resolution seeks to resolve the debt to your advantage as the taxpayer. A few basic tax resolution specialties you have on your side are:

  • Offer in Compromise
  • Filing appeals
  • Representation during an audit
  • Assistance with bank levies and liens
  • Innocent spouse support
  • Payment installment agreements

Owing the IRS can feel scary and intimidating. The IRS uses strategies that include filing liens on your property, attaching wage garnishment, and more.

That said, it's to your advantage to know what the IRS can do…and what they cannot do.

Know your rights

The IRS had a reputation of power abuse dating back to the 1960's. Congressional hearings in 1998 produced the Taxpayer Bill of Rights.

Your rights primarily include:

  • The right to appeal how the IRS collects taxes
  • The right to seek an Offer in Compromise
  • The right to obtain an Installment Agreement
  • The right to shift to Uncollectible Status
  • Audit outcomes

Practically speaking, when the IRS informs you of their Final Intent to Levy, you have 30 days to appeal their actions to collect on your debt. You even have certain rights beyond the 30-day period including a Due Process Hearing regarding their collections efforts.

You can:

  • Protest the amount you owe
  • Suggest payment alternatives
  • Refuse outcomes of tax collection from an audit you didn't approve
  • Ask for your case to be re-audited

Know who to trust

The bottom line is: you have options and you have professional tax resolution assistance available to you.

  • Do your homework. Confirm that your tax resolution specialist is licensed and remember that tax preparation is different than tax representation.
  • Avoid the “pennies-on-the-dollar” debt settlement promotion. Not all offers are accepted.
  • Work with a tax resolution specialist who knows the law, specifically tax law. You should seek a specialist that will not only advocate for your money, but also advocate for you.

Contact our law offices with your questions and concers about IRS debt or an IRS audit. Schedule a consultation today to discuss your tax resolution options and to learn more about the solutions we provide.

About the Author

Michael Raichelson

VENTURA & OXNARD BANKRUPTCY ATTORNEY & DEBT SOLUTIONS LAWYER SERVING VENTURA AND LOS ANGELES COUNTY Michael H. Raichelson has over 23 years of experience helping individuals and businesses throughout California and the United States manage their debt problems and find solutions that give them a ...

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The Law Offices of Michael H. Raichelson is located in Calabasas, California, and serves clients in and around Woodland Hills, Wilmington, Harbor City, Carson, Torrance, San Pedro, Long Beach, Compton, Ventura, Gardena, and Los Angeles County.

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