How You Can Resolve Every Type of Tax Problem with a Pro

Taxes are a necessary part of life, but they can be a source of stress and anxiety for many individuals and businesses. They can arise in a variety of ways and can have serious consequences if left unresolved. Fortunately, there are professionals who can help resolve these issues. 

Read on as we discuss the types of tax problems and how we can resolve them with a pro.

The 5 Types of Tax Problems We Face Today

1) Unfiled Tax Returns

Failing to file tax returns can happen for a variety of reasons, such as not understanding the tax system, being too busy, or simply forgetting. Failing to file tax returns can result in penalties and interest charges, which can quickly add up. A tax professional can assist in filing past-due tax returns and negotiating with the IRS to reduce penalties and interest charges.

2) Tax Liens

A tax lien is a legal claim by the government on a taxpayer’s property for unpaid taxes. This can include real estate, personal property, and financial assets. Tax liens can seriously impact an individual or business’s credit score and ability to obtain loans or credit. A tax professional can negotiate with the IRS to release a tax lien and develop a payment plan to resolve the outstanding tax debt.

3) Wage Garnishments

Wage garnishments occur when the IRS or state taxing authority seeks to collect unpaid taxes by taking a portion of an individual’s wages. This can be a significant financial burden, as the garnishment can continue until the tax debt is paid in full. A tax professional can negotiate with the IRS to release a wage garnishment and develop a payment plan that is manageable for the individual or business.

4) Bank Levies

A bank levy is similar to a wage garnishment, but instead of taking a portion of an individual’s wages, the IRS or state taxing authority takes money directly from their bank account. This can be particularly problematic for businesses that rely on their bank accounts to pay bills and employees. A tax professional can negotiate with the IRS to release a bank levy and develop a payment plan that allows the business to continue operating.

5) Audits

Audits occur when the IRS or state taxing authority reviews an individual or business’s tax returns to verify the accuracy of the reported income and deductions. Audits can be stressful and time-consuming, but a tax professional can assist in preparing the necessary documentation and negotiating with the IRS to resolve any issues that may arise.

Resolving Tax Problems with a Professional

• Review the Taxpayer’s Situation

It is critical to review the taxpayer’s situation. This may include reviewing past tax returns, assessing the amount of tax debt owed, and identifying any penalties or interest charges. Based on this information, the tax professional can develop a plan of action to resolve the tax problems.

• Develop a Payment Plan

The tax professional can develop a payment plan that is manageable for the individual or business. This may involve negotiating with the IRS or state taxing authority to reduce penalties and interest charges and develop a payment plan that fits within the taxpayer’s budget.

• Negotiate with the IRS or State Taxing Authority

A tax professional can negotiate with the IRS or state taxing authority on behalf of the individual or business to resolve tax problems. This may involve negotiating a payment plan, requesting a release of a tax lien or wage garnishment, or resolving issues that may arise during an audit.

• Provide Guidance and Support

Throughout the process of resolving tax problems, a tax professional can provide guidance and support to the individual or business. This may include answering questions, providing updates on the status of the case, and offering advice on how to avoid future tax problems.

Conclusion

Tax problems can be stressful and overwhelming, but they do not have to be. With the assistance of a qualified tax professional, individuals and businesses can resolve tax problems and get back on track. Whether it is filing past-due tax returns, negotiating a payment plan, or resolving issues that may arise during an audit, a tax professional can provide the guidance and support needed to successfully navigate the tax system.

Are you looking for an accountant in Framingham, MA? Ash CPA is here to help you get on top of your finances, give you more opportunities, and educate you–all at an affordable price! Contact us today to learn more about our services!