In this post we talked through the who, what, where, and why of Tax Resolution Services. In this post we’ll be talking about the how. At a high level, the process of solving tax problems is straightforward; it’s engaging a Tax Professional to pursue a resolution of your tax issues through representation before the IRS.
That doesn’t really explain how it actually works though, does it? For that we’ll need to look closer at a resolution roadmap. We’ll break a tax resolution case down into stages and look at each one.
The stages include:
It may seem like the process is pretty involved, but let’s look closer at each stage.
The best Tax Resolution company is a trusted local one and here’s why–in this meeting you’ll be face to face with an expert to discuss your situation. This allows you to really explain yourself and get all your questions answered.
After the advice you receive in your consultation you can choose to enter into a formal agreement to hire a Tax Professional. Once you review and agree to the engagement you and your Tax Resolution Specialist will sign and submit an authorization form. This form connects you to your TaxPro’s credentials and allows them to view your tax information and represent you in front of the IRS or State Tax Department.
Your authorization allows the TaxPro to retrieve all your IRS Transcripts and tax information. This allows the Tax Resolution Specialist to view all your return, income, and account information typically including hundreds of individual account transactions. At this stage you will also complete a financial information statement for the Tax Pro.
The analysis process allows your representative to know:
I could go on, but ultimately the analysis stage is what separates a true Tax Resolution Specialist from general Tax Professionals. The knowledge, experience, and expertise to deeply understand IRS transcripts and how a client’s financial state aligns with the IRS collections process makes all the difference.
The results of the analysis stage will empower your Tax Resolution Specialist to guide you to a resolution option that best fits the specifics of your case and offers the best long-term outcomes. A good Tax Resolution company will make sure you’re informed about the specific resolution, why it is the ideal path forward, and what all that entails. In some cases, there are multiple paths forward and the client is presented with the pros and cons of each before moving on.
This is the gathering of all necessary documents and preparation of any forms required for the resolution of your case. Sometimes minimal documentation is needed and how involved this stage is depends on the circumstances of each case. The most common documents we are required to provide to the IRS are: copies of Bank and Loan statements, Income documents (like pay stubs or Profit and Loss statements) and utility statements.
Before any resolution can be executed you must be considered a “compliant taxpayer” by the IRS. This typically means all past returns must be filed and you must be “current” with quarterly estimated tax payments and withholding at the correct rate for wage earners. A good Tax Professional will have a deep experience of what must be done to achieve compliance and will advise you accordingly.
Your Tax Resolution specialist will contact the appropriate IRS department and take the necessary steps to have your issue resolved. This includes diligent and persistent follow-ups with the IRS and is another area where the experience of a Tax Resolution Specialist matters. Knowledge of the IRS Collections process, its cadence of action and communication, when to follow up, and when to elevate an issue is critical.
Due to the nature of the IRS this stage can sometimes take the longest. In general, the process of resolving tax problems takes longer than clients expect. Cases typically take 3-6 months and in some cases a year or more. This is largely due to the nature of the IRS and their systems being on a 7-14 day delay between the action taken and when it appears and can be accessed in their systems.
Once the final resolution of your case by the IRS is completed the TaxPro should review everything and advise you on the next steps. This includes what to expect as the resolution continues, how to continue to succeed with the resolution, and how to avoid future tax problems.
That’s the end of our roadmap. I hope you have a better idea of how tax problems get resolved and what makes Costello Tax Resolution different from typical Tax Professionals.
When you owe the IRS, you should not have to live in fear. I leverage my experience as a former IRS Revenue Officer to protect you from IRS enforcement and settle your tax debt permanently.
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