“Every action has an equal and opposite reaction.”
You must be familiar with the mentioned quote. Though it was initially coined by Newton as his third law of motion, people have related the statement otherwise.
Similarly, in a nation, especially a country where the government is democratic, taxes are of immense importance. Every citizen has to pay tax except a chunk of the population whose annual income is below the taxable range. In exchange for citizenship, the government demands taxes from a person.
In this article, we will talk about tax resolution and a few tips and tricks that might help you in the long run.
Tax Resolution, In A Nutshell
Tax relief or tax resolution are two services that help taxpayers relieve themselves of back tax problems.
It does not apply to every taxpayer. When people miss filing their taxes or face any issue while paying the taxes and ignore it, they turn to a tax resolution. Usually, in such cases, the state government, left with no other option, decided to retrieve the unpaid taxes forcibly.
They do this by issuing a bank levy. The government orders a levy on the taxpayer’s bank account so that they are forced to pay their taxes. The government can also issue a levy on other assets like their property and so on, but that is not the most common scenario.
However, you will find plenty of companies offering tax resolution services that aim to guide you through the necessary process. Even if you find yourself in a position where you might have to take the help of tax resolution, you have nothing to worry about.
We will be sharing a few methods in the following section that might come in handy while paying your unpaid taxes.
A few tips and tricks regarding the same
● Currently Not Collectible
It is one of the few conditions when the IRS halts any kind of tax collection. In this case, the taxpayer needs to show that their expenses exceed their overall income.
IRS will, of course, check the sanguinity of your statement by comparing your income with the national standard. They will only relieve you of your taxes once they confirm that you will be unable to maintain a basic living on paying taxes.
● Offer In Compromise
Suppose you had missed out on paying your taxes one time in the past when your financial condition was affluent. Now, you have failed to maintain a similar financial situation.
In such a situation, on further inspection, the IRS might decide to let you go off your unpaid taxes. However, the government will continue its rounds of reviews to ensure your inability to file taxes.
● Installment Agreement
This method is exactly how it sounds. Once you present your issues concerning paying the tax in full amount, the government will prepare an arrangement for you. It will allow you to pay your taxes every month in manageable amounts for a period as long as six years.
