Tax relief services that are offered can be a very useful service for individuals that have run into problems with their taxes. There are costs associated with hiring a tax company, but the benefits received from these services typically outweigh the costs. There are many services offered by tax resolution firms, the service that you use is determined by your compliance with the IRS, your financial situation and other unique factors that are specific to your case.
Free Tax Consultation
Most tax resolution services will offer you a free consultation. In this consultation you will speak with a tax resolution representative. Typically, the consultation is no longer than 30 mins. During the consult the tax professional will ask many questions about your current tax situation and financial situation to find out what options would be a good choice for you. After the consultation, you will be able to get a good sense of what service and benefits you would receive from from using the tax firm to resolve your tax problems as well as a cost estimate for the services they would provide for you. At the end of the consult you will be given the option of hiring the tax resolution firm to handle your tax problems for you and they can then begin to get you into full compliance with the IRS filings and begin the tax resolution process.
Once You Have Chosen a Tax Relief Firm
Once you have decided on a tax firm that you would like to help you, your case will be assigned to a qualified tax professional or tax team. There are three main types of tax professionals that will help and it can be either a tax attorney. enrolled agent or a CPA. Depending on your case you may have several
different professionals handling different aspects of your tax problems. Typically what happens next is that you will sign a power of attorney to allow the tax professional to represent you before the IRS and so that they request transcripts from the IRS in order to see what the IRS records show for you. Once this happens all future correspondence between you and the IRS will be handled by the tax resolution or tax relief firm.
Tax Resolution and Settlement Process Begins
Once the tax resolution process begins your tax professional will ensure that you are first in full compliance with all tax filings. In order to settle taxes (a small possibility) or just come to a resolution it will be required that all tax filings are up to date and filed in the proper way. Once you are in full compliance then your tax professional will find the most practical tax settlement or resolution method (e.g. installment agreement, offer in compromise, penalty abatement, innocent spouse relief) for you that they feel the IRS will accept with your current situation and while still not putting extreme financial stress on you. This process will not happen overnight, the IRS moves slowly, but you can be assured that matters are moving forward and in the correct manner.
Settlement is Approved and Taxpayer is in Full Compliance
Once the IRS or State approves the filings, your resolution will be complete and the IRS will be completely off your back. Your account will remain in good standing with the IRS or State as long as you remain in compliance with the them on future filings and keep up to date on payments. Your tax professional/advisor will also help advise you on ways to ensure you remain in compliance and avoid future problems with taxes.