By Tory Vance
When you miss filing taxes, you immediately become a target for the IRS. Remember, taxes fund governmental activities and all associated programs. By failing to file taxes, you are (in a way) stealing from the government. This logic is what warrants the often-extreme actions taken by the IRS.
However, dealing with an IRS action can be quite overwhelming, especially when it includes aggressive moves such as liens, levies, wage garnishments, and seizures. Such an action against an already fragile financial state can leave you completely powerless and destroyed. Worry not! There is a solution! By seeking expert tax planning in Dallas, TX, you gain access to some sophisticated strategies that are sure to alleviate your concerns.
Here’s a thorough understanding of IRS actions, and how tax experts can help deal with them…
Common IRS Enforcement Actions
Liens
A lien is the government’s legal claim against your property when you fail to pay a tax debt. It can affect your credit score, making it harder to sell or refinance your assets. Once a lien is filed, it applies to all of your current and future properties until the debt is paid off.
Levies
A levy is more severe than a lien – it allows the IRS to seize your property to pay off your tax debt. The IRS can garnish your bank accounts, investment accounts, or other financial assets.
Wage Garnishment
The IRS has the authority to garnish your wages, taking a portion of your paycheck until your tax debt is repaid. This can make it difficult to cover everyday living expenses, adding stress to an already difficult financial situation.
Seizures
In rare and extreme cases, the IRS may seize property, such as cars, homes, or businesses, to satisfy unpaid tax debt. This is usually a last resort when other collection methods have failed. Seizures can devastate individuals and families, and once assets are seized, getting them back is extremely difficult.
Solutions to IRS Tax Problems
IRS Audit Representation
Being audited by the IRS can be a stressful experience. An audit can lead to further penalties or adjustments if discrepancies are found in your tax filings. Tax experts who specialize in IRS audits can represent you throughout the process, communicating with the IRS on your behalf and ensuring that your rights are protected. This involves gathering and organizing necessary documentation, handling IRS queries, and negotiating any additional liabilities.
Offer in Compromise (OIC)
For taxpayers who are unable to pay their full tax debt, the IRS offers the possibility of an Offer in Compromise. This program allows taxpayers to settle their debt for less than the total amount owed if they can prove that paying the full amount would create financial hardship. Naturally, proving this actually requires the skill-set of tax experts. Their skill set allows presenting a compelling case, along with all supporting documents.
IRS Payment Plan
For many taxpayers, setting up an IRS payment plan is the most practical solution to resolving tax debt. An installment agreement allows you to pay off your tax debt in monthly installments over time, which can make managing your finances more feasible. Accountants specifically help negotiate payment plans that work for both parties. Similar to a typical loan or EMI payment, such a payment plan should not be an additional burden on you, while also satisfying the IRS.
Much of IRS-related troubles can be alleviated with the assistance of a tax expert. However, prevention is always better than the cure. Before tax season comes around, reach out to an expert accountant. This way, you can get a head-start on your tax situation, file in time, and avoid any unnecessary IRS attention!
