How Tax Resolution Can Help You During the 2023 Tax Season
March 20, 2023
Be proactive, prepared & engage a tax resolution specialist to help guide you
Tax season can be an unpleasant time of year for a lot of taxpayers, especially if you owe money to the IRS or State. The one thing you can do is, be proactive, prepared, and engage a tax resolution specialist to help guide you. If you owe back taxes to the IRS, then read every word in this article very carefully because what you do next can impact your financial stability and peace of mind. Today, I am going to share with you what tax resolution is and how it can help you.
Before we jump into it, if you have a back tax debt or years of unfiled tax returns, contact our firm for a consultation. We always recommend that you do not talk to the IRS without representation as, many times, it makes your situation worse.
The IRS can be an intimidating agency to speak with and will do everything in their power to collect what is owed to them. Connect with one of our tax resolution specialists for a no-obligation consultation so we can review your case and guide you to the best option for your specific situation. You won’t have to talk to the IRS and our firm can provide the peace of mind you need to resolve your tax issue.
What is Tax Resolution?
Tax resolution, also known as IRS Representation, or Tax Controversy, is the process of resolving back tax issues with the IRS or state tax authorities. It generally involves negotiating a payment plan or a settlement agreement for less than you owe. Many times, for a lot less if you’re eligible.
There are several options available for resolving taxes owed including:
- Payment Plan - A payment plan is an installment agreement that allows you to pay off your tax debt over time until the debt is paid in full.
- Partial Pay Payment Plan - A “PPIA” is an installment agreement that allows you to pay off your tax debt for less than the full amount.
- Offer in Compromise - An Offer in Compromise (OIC) is an agreement between you and the IRS to settle your tax debt for less than the full amount owed. To qualify for an OIC, you must demonstrate that you are unable to pay your tax debt in full and meet certain eligibility requirements.
- Currently Not Collectible - If you are facing financial hardship and are unable to pay your tax debt, you may qualify for Currently Not Collectible (CNC) status. This means that the IRS will temporarily suspend collection efforts until your financial situation improves. However, this does not mean you do not owe what you owe, it just means it is a temporary suspension on making monthly payments to the IRS.
How Can Tax Resolution Help You?
If you find yourself in the unfortunate situation of owing back taxes to the IRS, then here is how tax resolution can help you in several ways:
- Avoid Penalties and Interest - When you owe back taxes, the IRS will assess penalties and interest on the amount owed. These fees can add up to another 50% to the principal tax owed. We can help you avoid or reduce these fees, which can add up quickly over time.
- Reduce Your Tax Debt - Tax resolution can help you negotiate a settlement agreement or payment plan that reduces your tax debt. This can make it easier to pay off your outstanding taxes and get back on track financially.
- Protect Your Assets - If you owe back taxes, the IRS will eventually attempt to garnish your wages or seize your assets, including bank accounts. We can help you protect your assets and income and negotiate the lowest monthly payment allowed by law.
- Improve Your Credit Score - When you owe back taxes, it may negatively impact your credit score. Tax resolution can help you pay off your tax debt and improve your credit score over time.
In conclusion, tax resolution is a way to settle tax debt and get back on track financially. It involves negotiating a payment plan or settlement agreement with the IRS or state tax authorities. By avoiding penalties and interest, reducing your tax debt, protecting your assets, and improving your credit score, tax resolution can help you achieve financial stability and peace of mind. If you owe back taxes, it is important to take action sooner, rather than later and explore your options for resolution.
Our firm specializes in tax resolution, even if you have years of unfiled tax returns, or owe the IRS over $10,000 we can help! If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation
to explain your options to permanently resolve your tax problem.
The IRS in December sent a total of $2.4 billion in "special payments" to roughly 1 million Americans, part of an effort to ensure that people who didn't receive all of their federal stimulus checks during the pandemic would finally get the money. Most eligible taxpayers have already received their Recovery Rebate Credit, as the payment is called, but for those who haven't there is still time to submit a claim. But time is running out, as the deadline to file a claim is April 15. Here's what to know. What to know about the $1,400 IRS stimulus checks The Recovery Rebate Credit was designed for people who didn't get all or some of the stimulus checks when they were issued during the pandemic. Lawmakers authorized three stimulus payments, with two sent in 2020 and a third in 2021. The checks are a holdover from the three stimulus payments that were sent during the pandemic, as some people may not have received some of the money, even if they were eligible. The tax agency disbursed the funds after reviewing internal data that showed many people had filed tax returns but yet didn't claim what is known as the "recovery rebate credit" in 2021. However, non-filers, or those who have not filed Payment amounts will vary by person, with a maximum amount of $1,400 per recipient, the agency said in a statement. Who will get a payment from the IRS? Most taxpayers who were eligible for the stimulus payments have already received them directly, or later through the recovery rebate credit, the IRS said. However, the encourages non-filers to claim credits before the approaching April 15 deadline, as they may be eligible for the the up to $1,400 payment. Who is not eligible for a payment from the IRS? The eligibility requirements to file a claim to the 2021 Recovery Rebate Credit are as follows: -You are a legal U.S. resident. -Either you or someone you claim as a dependent has a valid Social Security Number or Adoption Taxpayer Identification Number issued by the IRS. -You cannot be claimed as a dependent on another taxpayer's 2021 tax return. -See here for more information on eligibility. Do you need to apply for the IRS payment? For those who have not yet received a payment, the answer is yes. While most eligible taxpayers have already received the funds through automatic payments, eligible non-filers will have to file a claim in order to get their payment. In order to claim the 2021 Recovery Rebate Credit, taxpayers must file a 2021 tax return by the April 15, 2025, deadline, "even if their income from a job, business or other source was minimal or non-existent," according to the IRS' website. Detailed information on how to file a claim for the 2021 credit can be found here. When will the IRS send the payments? The tax agency said the checks will be sent in December, with most of the payments arriving by late January 2025. The money will either be automatically direct deposited to the recipient's bank account or will arrive in the mail via a paper check. Contact us today for all your IRS needs! {{content_library.global.phone.148012611}}
Tax season started in late January, but the IRS’s latest statistics show that many Americans are still waiting to file their taxes. As of February 7, 7.7% fewer tax returns have been received by the agency compared to a similar time frame last year, according to its latest data release. While the IRS expects filing numbers to even out, the IRS.gov website has experienced a 40% decline in visits this year to date over last year. Francine Lipman, CPA, a tax law professor at the University of Nevada, Las Vegas, says the reasons could be endless but probably come down to simple procrastination. “Despite all the Super Bowl ads, I don’t believe that tax issues are on people’s radar yet,” adds Lipman. This is surprising considering the political climate, says Jordan Rippy, an accounting professor at Johns Hopkins University’s Carey Business School, who expected to see an uptick in returns filed this year. “Given the general climate surrounding the new administration, I would have expected more anxiety in the general population and a desire to receive refunds more quickly,” she tells Fortune. Elon Musk’s Department of Government Efficiency (DOGE) reportedly visited the IRS on Thursday to begin analyzing the agency’s operations. Senator Ron Wyden (D-OR), ranking member of the Senate Finance Committee, later posted on X that “if your refund is delayed, they could very well be the reason.” Average tax refunds are higher this year so far The rise in electronic filing is one of the biggest changes to the tax system in the last decade. With over 90% of individual taxpayers now filing their returns online, the process has become easier to handle for many Americans. But taxpayers still miss out on over $7 billion in underclaimed and unclaimed tax credits and deductions each year. In the 2025 tax season to date, tax filers have received a 18.6% increase in their average refund amount ($2,065) compared to this time last year ($1,741). The IRS cautions this isn’t a perfect indicator of the final trend in tax refunds, since it’s early in the season. The agency says most refunds are issued within 21 days. In the final analysis, the average refund last year was around $3,138. Compared to 10 years prior, last year’s average rebate was down nearly 30% on an inflation-adjusted basis. Rippy says she is surprised that average tax refunds have not decreased more as Americans realize they can adjust their withholdings and get more money per paycheck throughout the year. “If you receive a large tax refund, what you've essentially done is given a loan to the government over the last year that you didn't have to give them, and you've done that interest-free,” says Rippy. At the same time, she admits that the fact that many Americans expect a big refund year after year is a good thing, as it’s a form of forced savings. While many end up saving their refund, others use it to pay down debt, make a home improvement, or go on vacation.
If you’re dealing with IRS wage garnishment, it can feel like you're trapped in a difficult situation. The IRS can take a portion of your paycheck to satisfy your tax debt, causing serious financial strain. However, you do not have to face this alone. There are steps you can take to stop garnishment and restore control over your finances. This guide will help you understand what wage garnishment is, why it happens, and what actions you can take to end it. Understanding IRS Wage Garnishment Wage garnishment is a legal tool used by the IRS to collect unpaid taxes. Unlike many other types of debt collection, the IRS does not need a court order to garnish your wages. They will send you a Final Notice of Intent to Levy before initiating garnishment, and if you don't act, they will take a portion of your paycheck to pay off your tax debt. How Wage Garnishment Affects You Wage garnishment can create numerous challenges, including: - Loss of Income: With part of your wages withheld, it can be difficult to meet daily living expenses. - Damage to Your Credit: Unresolved tax debts and garnishments can hurt your credit rating, making it difficult to obtain loans or secure favorable financing terms in the future. - Stress and Emotional Toll: The financial pressure can create stress, affecting your mental health and relationships. Professional Impact: If colleagues find out about the garnishment, it could affect your reputation at work. Steps to Take to Stop IRS Wage Garnishment If you’re facing wage garnishment, take action quickly to put an end to it: 1. Respond to IRS Notices Immediately If you receive any IRS notice about garnishment, it's vital to act quickly. Ignoring it will only escalate the situation. Contact the IRS and request a Collection Due Process hearing where you can address the garnishment. 2. Explore Payment Plans and Agreements The IRS offers various options to settle your debt, such as installment agreements or an Offer in Compromise (OIC). These options allow you to repay your debt over time or settle it for less than what you owe. 3. Apply for Hardship Relief If the garnishment is putting you in financial distress, you may qualify for a hardship exemption, which can temporarily stop the garnishment while you work out a solution. 4. Contest the Tax Debt If you believe the IRS has made a mistake in assessing your tax debt, you have the right to dispute it. During this dispute process, garnishment can be put on hold until the matter is resolved. 5. Seek Professional Help Dealing with the IRS alone can be overwhelming. A skilled tax professional can help you navigate the complex process, negotiate with the IRS, and secure the best possible resolution for your situation. Why You Should Work with Advantage Tax Relief The process of stopping IRS wage garnishment requires specialized knowledge and experience. Advantage Tax Relief, located in Itasca, IL, offers over a decade of experience in tax resolution. Their team of experts knows how to work with the IRS to resolve wage garnishment issues and put together a personalized plan for you. Working with Advantage Tax Relief means having a dedicated partner who understands the nuances of IRS procedures and will advocate on your behalf to reach a favorable resolution. Their team will help you explore all options, including negotiating payment plans, filing for hardship relief, or contesting tax assessments. Take Action Today Don’t let wage garnishment control your life. Contact Advantage Tax Relief in Itasca, IL at 630-773-3200 for a consultation. Their team is ready to guide you through this process, offering the help you need to regain control of your finances and find relief from the IRS.
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