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Dealing with the Internal Revenue Service can be frustrating, especially if one doesn’t come prepared in a timely manner. The IRS has the authority to force taxpayers to pay their owed tax liabilities. Imposing a lien on property, garnishing wages, and adding penalties are some of the actions they take to ensure individual taxpayers and business owners pay back their owed amounts. Once these actions are taken by the IRS or state agency, it is difficult to get back up on your feet. Therefore, the quicker you set agreements with the IRS based on your financial circumstances, the better. The best method for dealing with the IRS is through tax relief services with the help of a licensed tax attorney.
If you have tax debt, tax relief services can be beneficial to you. These services can help you eliminate penalties, reduce tax bills, and get the IRS off your back in regards to enforced collection actions. Moreover, qualified tax attorneys can stop garnishment on wages and prevent asset seizure.
Depending on one’s financial situation, the right option may vary. Here’s an overview of the relief process with the assistance of tax relief services.
Free Consultation
The journey of relief starts with a free consultation. Typically, the meeting takes about 30 minutes, but it can prolong, depending on the case. During the consultation session, the client will address their case to a professional tax attorney. The individual will be acknowledged about the different tax relief services the law firm offers. The attorney’s job is to ensure the service chosen will benefit the client.
Signing A Tax Authorization Form
After choosing the right law firm, the client will require to sign an 8821, or a Tax Authorization form. Additionally, business owners will also be required to sign this form in order to represent their organization. The form allows a licensed tax professional to complete a tax compliance check in order to find out the services the client may need along with the tax alternatives.
Generally, the IRS won’t work with individuals until they have returned all of their tax debts. Therefore, it is important for a licensed tax attorney to be aware of their clients’ tax compliance situation.
Tax Resolution and Settlement Process
Next, the law firm will present their clients a list of tax relief services and IRS programs they provide. This will be done after the tax attorney reviews their IRS transcripts to understand their financial situation. This is often known as a compliance check.
The tax relief firm will break down the fees involved and assign the case to a professional tax attorney, who will be responsible for representing the client’s case. Before the start of the representation process, clients will be required to sign a Limited Power of Attorney Form. This allows the tax attorney to deal with the IRS directly and prevent collection activity, such as an IRS Tax Lien or IRS Tax Levy issued by an IRS Notice.
The licensed attorney finds the most practical tax relief solution for clients from the following services:
- Installment Agreement
- Offer In Compromise
- IRS Hardship
- Tax Preparation
- FBAR
- Payroll Tax
- Audit Representation
- Penalty Abatement
Tax attorneys’ aim is to balance what the IRS will accept with the taxpayer’s budget. They will handle all the paperwork associated with applying for a settlement or payment plan.
The process isn’t always quick, but once a taxpayer hires a licensed tax attorney for assistance, they will be on the right track.
Settlement Approved
Once the IRS approves the proposal, the individual taxpayer will make the payment based on the settlements agreed upon. Eventually, if taxpayers do not miss any payments and stay compliant with filings, the IRS will be off their backs. Moreover, tax attorneys will provide their clients with guidance on how to avoid future tax issues to ensure that they continue to be on good terms with the IRS.