More and more Americans are facing a growing tax debt issue. The amount of Federal tax liens and levies filed by the IRS has grown considerably. Last year, almost five million tax levies have been served on third parties, a 550 % increase when compared to the exact same IRS reports from five years ago. The IRS is also issuing over 100,000 wag garnishments every month which is a 150% increase.
The IRS is generally relentless in the goal of theirs of collecting exceptional tax debt. The stress as well as stress which is usually positioned on families and people may be frustrating. Specialized tax relief firms are usually an amazing tool of help with regards to coping with the IRS (or maybe some other State Tax Authorities) regarding again tax quantities owed or maybe a broad range of some other tax associated obstacles. Listed below are some of the top reasons of hiring a tax resolution firm to assist with a back-tax issue.
1. You do not need to deal with the IRS or State alone
Among the main advantages of using a tax relief organization is the point that they’ve numerous professionals with various educational backgrounds to assist you. By having a broad range of industry experts that know how the IRS functions (such as other specialists, CPA’s, or attorneys), they’re in a position to place that expertise to meet your needs to ensure that you are able to achieve the absolute best settlement or maybe option for the tax issues of yours. All things considered, when offering with the IRS or maybe State Tax Authority, you are able to certainly not have way too many professionals operating on the side of yours.
2. Reducing the amount you owe to the IRS or State
The entire amount you owe the IRS is usually compounded by extra penalties as well as interest, as well as might entail a lot more than a single tax period or perhaps problem. These penalties as well as interests are instantly evaluated to the account of yours by their pc system; nevertheless, you might not have to spend the extra costs.
An experienced tax relief firm is able to assess the situation of yours and based on the circumstances behind why you owe the debt, may quite often have these penalties taken from the entire balance owed. This is applicable to the interest accruing on the balance of yours also, which will actually add up with any period of time.
3. Eliminate or prevent an IRS and or state wage garnishment
Garnishing the wages of yours is still another tool the IRS is able to apply to obtain past due amounts owed to them. This particular adjustment to the paycheck of yours may be economically devastating to the home income of yours, typically taking somewhere between 30 75 % of the NET paycheck of yours before it will make it into the hands of yours.
The IRS legally demands an employer to comply with the collection initiatives of theirs as well as the wage order remains in effect until the IRS releases it, generally not until the whole amount owed to them have been collected.
An experienced tax relief firm can appeal to the IRS on the behalf of yours and also have the garnishment of your earnings reduced to a far more reasonable amount or even frequently stopped entirely.
4. Protect your home of yours and other property from an IRS seizure
In some severe cases, plenty of citizens have lost their home or other property due to past due tax debts. Even though property seizure is but one technique that the IRS is able to utilize to gather amounts owed, it’s often a last measure for these people.
Nevertheless, the amount of IRS property seizures has grown considerably within the last ten years. This year, the IRS conducted 776 property seizures (compared to 234 seizures in 2001), resulting in a 230 % increase in this enforcement in only ten years. A seasoned tax resolution firm can enable you to stay away from becoming one of those astonishing statistics.
5. Protect or release a bank account levy
Much like a property seizure, the IRS also can put into action some other methods to obtain past-due taxes. Yet another common technique being used is levying the bank account of yours. This particular action is going to occur after the IRS directs several written warnings as well as notices, but still takes lots of people by surprise whenever they discover the bank account of theirs has been cleared out overnight.
As outlined by the IRS, more than fifty-five dollars billion dollars was collected because of enforcement actions in 2011, up 63.3 % coming from a decade prior to. The thought of finding out the IRS or state has drained your bank account is enough to keep you up at night. The fear that the IRS followed through with the levying of your bank account, along with realizing that the hard-earned money in your bank account that you had earmarked for essentials such as gas, food, rent, or maybe other things, is no longer yours to spend.
This is another example of a scenario that could be sidestepped by having an experienced tax resolution firm to assist you. The urgency to speak with a professional tax resolution firm the moment you receive your first letter is crucial for timing and protection.
6. Avoid losing your passport and or driver’s license
In 2018 the IRS has started to revoke US citizens passports for owing back taxes. In the even you lose your passport you will not be allowed to leave the US, or even worse if you are abroad you will not be able to return home to the US. Having a tax resolution firm behind you they can negotiate to get your passport reinstated and protected from further revocations.
What is even scarier the IRS and state can suspend your driver’s license making it impossible for some people to work or take care of their family. With the help of an experienced tax resolution firm you can have your driver’s license reinstated or avoid any issues with you driver license.
7. Protecting you in case of an audit
Though the odds of an audit are low they have increased year over year for the last decade. The worst letter a person may receive in a lifetime is that they are the subject of an IRS audit. The sure stress and hardship of fighting an audit can be overwhelming let alone impossible to do on your own. Hiring a tax resolution firm who has experience with audits and knows the tax laws in and out is the only way to come through tax audit unscathed.
8. Resolving you back tax issues for less than originally owed
Frequently the IRS is prepared to bargain with taxpayers in respect to great debts which are owed. The IRS or State is allowed to negotiate with a taxpayer or their attorney to receive less than originally owed. In the IRS minds they rather receive something than nothing at all. This is where a seasoned professional can assist in negotiating your IRS debt. Initiating a settlement negotiation with the IRS is a very slippery slope, and without knowing the laws and your rights you may not be able to reduce the debt to the amount you re legally allowed to.
Having a tax professional negotiate for you in one of the most crucial aspects of tax resolution. When you are represented by a tax professional negotiating with the IRS on the behalf of yours, they will get you the best possible outcome in regard to the amount you will have to pay and the timeline they expect the repayment.
9. Preparing & filing your tax returns.
Currently, one in five Americans are struggling with a back-tax issue. That means over 40 million Americans are in debt to the IRS or state. The first step in tax resolution is making sure a person is compliant with the IRS and or state. Once all tax returns are filed and posted you can initiate negotiations on your back-tax issue. A good tax resolution firm can save you over thirty percent on your amount of taxes you owe, just by preparing your tax returns for you to ensure you receive all the deductions you deserve.
10. Avoiding liens or levies on your property
The IRS is placing tens of thousands of liens and levies on Americans’ property every month. Each month more and more people are finding out they have a tax lien on their property which makes it impossible to refinance and or sell. A professional tax resolution firm can not only remove any tax liens on your property they can ensure that there are no further liens or levies placed upon your personal property.
The stress, fear, and pressure of owing the IRS and or state can destroy an induvial or family. Owing to the IRS or state and effect a person emotionally, financially, and even their health. By taking the first step in hiring a professional tax resolution firm a person can start to breathe again. Taking the first step to protecting yourself and your family for what you worked so hard for will be the quickest and most successful way to permanently fixing a back-tax issue.