There are many ways to resolve your tax issues. If you owe back taxes, you can use tax resolution to negotiate with the IRS. This involves reviewing your returns and working with the agency to set up a payment plan. In some cases, the IRS may agree to accept less than the full amount. This is called the Offer in Compromise program.

Offer in Compromise

If you're struggling with debt and want to find tax resolutions, you can try the Offer in Compromise program. It can help you save thousands of dollars in owed taxes, fees, and interest. However, there are some important factors to know before starting the process. First, make sure that you're eligible for it. Using this program can help you pay off your debt without going bankrupt. It requires that you provide the IRS with detailed information about your finances and personal circumstances. They will use this information to estimate your "Reasonable Collection Potential."

The minimum amount that you can offer is based on your available assets and your income over acceptable expenses. If you're not sure whether you qualify for an offer, check the IRS' pre-qualifier tool. If you're self-employed or have employees, you might not be eligible. Also, if you have an installment agreement with the IRS, you won't be eligible. If you can't afford to make a higher payment, the IRS will not accept your offer.

Audit representation

Hiring a tax attorney is a great option for people who are facing an IRS audit. You will have a more favorable chance of getting your tax bill reduced if you have a tax attorney at your side. Tax attorneys are well-versed in the process of tax resolutions and will fight for your rights.

You will also be protected from any penalties and interest the IRS may levy on your account. An audit can be a terrifying experience. Even if you filed your tax returns on time, an audit can make you feel stressed and unprepared. Hiring a tax professional to represent you can ease the stress and anxiety.

A tax attorney will provide guidance and help you prepare for a tax audit. The IRS can be very challenging, and you may be unsure of what to do. A tax representative will help you prepare for your audit, and will help you minimize the damage if you are found to be in error. One of the simplest types of audits is a mail audit. These require you to submit extra documents to the taxing authority. However, you do not have to hire a tax attorney for this type of audit.

Penalty abatement

Penalty abatement is the process of reducing the amount of tax owed by requesting a reduction in the penalty amount. The procedure can take a while, but it is usually worth it. The first step in requesting penalty abatement is to prepare your request. Most taxpayers prepare the request themselves, or use an accountant to do so. However, these self-prepared requests often contain a lot of regurgitated information and facts, which actually hurt the taxpayer's case and make it easy for the IRS to deny the request.

If you are able to prove that the penalty is the result of a mathematical error, the IRS may reduce the penalty amount by 25 percent. However, if the tax underpayment was caused by fraud, you may have to pay 75 percent. Interest will not be reduced if your IRS assessment was the result of fraud, but will still accrue on the penalties.

Taxpayers often have multiple years of back taxes, and penalty abatement can help them get some relief from these bills. Often, penalties can be incurred unintentionally due to financial constraints or the wrong advice. To take advantage of penalty abatement, you should work with a tax professional with expertise in tax resolutions.

Innocent spouse relief

If you are married and you have filed joint returns, you may be eligible for innocent spouse relief in tax resolutions. Innocent spouse relief is available to taxpayers who believe that a spouse made a mistake that led to an understatement of taxes. However, you must show evidence that your spouse did not know about the error. Fortunately, there are several ways to prove that you are an innocent spouse.

The IRS examiner will review the facts of your case and may request more information. If necessary, he will also involve the non-requesting spouse in the decision making process. Ultimately, you can appeal the IRS decision if you are not satisfied with the outcome. Regardless of whether or not your spouse is able to qualify for innocent spouse relief, it is still important to get the help you need to file your return.

Innocent spouse relief is available to taxpayers who owe additional tax because their spouse failed to report their income. This relief is also available to taxpayers who have a spouse who has died, or who has not lived with them for 12 months.