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Possible Tax Resolution Strategies to Ease Your Mind

May 6, 2023

If You Owe Money to the IRS

For honest taxpayers, receiving a letter from the IRS can be extremely daunting. Unlike most other government agencies, the IRS has the power to attack your wages, freeze your bank account, and even confiscate your property, which is enough to send shivers down any taxpayer's spine.

However, if you receive a letter from the IRS stating that you owe additional taxes, it's essential not to panic. While it may be a daunting situation, you can settle your tax debt and get back on the good side of the IRS by taking certain steps.

As a Tax Resolution Firm, we encourage all readers facing a tax problem to contact us for a free consultation.

In any case, it's important to be an informed taxpayer. Below are three strategies you can use to resolve your tax debt and keep your peace of mind. Not all of these options will be suitable for everyone, but knowing what they are can help you set your mind at ease. The IRS can be intimidating, but they can be reasonable if you know what to say and how to approach the situation.

Review the Amount Owed and Your Tax Return in Question
If the IRS says you owe money, don't assume they are correct. The tax agency makes mistakes, and so do taxpayers and tax preparers. Whether you filed your taxes on your own or hired someone else to do it for you, it's crucial to examine your return and compare what you find with what the IRS is claiming. It's advisable to seek professional assistance for this tax review, even if you initially filed your taxes yourself. A professional with IRS experience may be able to uncover errors and inconsistencies that you would have missed on your own, which could save you money.

While this review may not eliminate the extra taxes the IRS says you owe, it doesn't hurt to be sure. Many taxpayers who believed they owed money to the IRS have ended up owing nothing or even receiving a refund from the agency.

Set Up a Payment Plan
Getting a notice of additional tax due from the IRS can be frightening, particularly if you cannot afford to pay what the agency says you owe. However, keep in mind that you don't necessarily have to pay the bill all at once. The IRS is frequently willing to work with taxpayers and set up payment plans, which could make paying what you owe more manageable and less stressful. Once again, it's a good idea to seek professional assistance and guidance here. The IRS can drive a hard bargain, and you don't want to end up with a payment plan you can't afford.

If you fall behind on the payment plan you agreed to, the IRS may take further enforcement action, including garnishing your paycheck or freezing your bank accounts. Seeking the assistance of a tax resolution professional upfront can help you avoid these serious consequences.
 
Explore an Offer in Compromise Settlement
If you genuinely can't pay the amount the IRS claims you owe, you may be able to negotiate a smaller payment. The IRS may not advertise this program, but the tax agency is often willing to work with taxpayers by accepting smaller amounts, particularly if those taxpayers have few assets and limited income. Sometimes, these can be for a fraction of what's owed if you qualify. We offer a free no-obligation consultation to determine whether you qualify.

If you plan to pursue this last option, it's crucial to work with a tax resolution expert. These compromise offers can be incredibly complex, with legal language and terms that can be difficult to comprehend. You don't want to make a mistake here, and you want to ensure that paying the compromise account will result in a complete settlement of your tax bill.

Understanding the LT11 Letter: Take Immediate Action

By 7066766659 • December 30, 2024
Receiving an LT11 letter from the IRS can be incredibly unsettling. This notice is a serious warning that the IRS is prepared to take tough action to collect unpaid taxes. If you’ve received this letter, it’s important to understand what it means and why you need to act quickly. What is an LT11 Letter? An LT11 letter, also known as the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing," is sent by the IRS when you have unpaid taxes and haven’t responded to previous notices. This letter means the IRS is ready to levy your assets, which means they can legally take your property to pay off the tax debt. This could include money in your bank accounts, your wages, your home, or other valuable belongings. What Can Happen If You Ignore It? If you ignore an LT11 letter, the IRS can take serious actions, such as: Seizing Money from Your Bank Account: The IRS can freeze your bank accounts and take the money. Garnishing Your Wages: Your employer will have to send a portion of your paycheck to the IRS. Taking Your Property: The IRS can seize your house, car, or other valuable items. Damaging Your Credit Score: A levy or lien can hurt your credit score, making it hard to get loans or credit in the future. Why You Need to Act Quickly The LT11 letter gives you only 30 days to respond. Within this time, you have the right to request a Collection Due Process (CDP) hearing. This hearing is your chance to dispute the levy action, propose a different payment plan, or challenge the amount you owe. If you don’t act within these 30 days, the IRS will start the levy process, and your options will be very limited. The Importance of Professional Help Dealing with the IRS and resolving tax problems can be very complex, and trying to handle it on your own can lead to mistakes that might make your situation worse. A tax resolution professional has the knowledge and experience to help you navigate this challenging process. Benefits of Professional Help: Expert Negotiation: A professional can negotiate with the IRS on your behalf to secure the best possible terms. Strategic Planning: They can develop a plan to resolve your tax issues without causing financial hardship. Legal Protection: A professional ensures that your rights are protected throughout the process. If you’ve received an LT11 letter, don’t wait another moment. Contact Advantage Tax Relief immediately at 630-773-3200. Advantage Tax Relief is a skilled tax resolution firm that can help you navigate your tax issues and achieve the best possible outcome. Call Advantage Tax Relief NOW at 630-773-3200 to prevent the IRS from taking your hard-earned money and assets.

What to Do If You Have an IRS Balance: Solutions from Advantage Tax Relief

December 9, 2024
Dealing with an IRS Balance? Reach out to Advantage Tax Relief today to solve all of your IRS problems! Receive expert guidance and support from a professional expert.

How to Handle a CP523 Notice from the IRS

November 25, 2024
What is a CP523 Notice from the IRS? Receiving a CP523 notice is a serious matter. It’s an official communication from the IRS informing you that your tax installment agreement has been canceled. This typically happens when you fail to make payments or violate the terms of your repayment plan. If you’ve gotten this notice, it means the IRS is prepared to take further action, so it’s critical to understand what it means for your situation. Why You Need to Act Now A CP523 notice signals that your repayment agreement is no longer in effect. Without an active installment plan, the IRS has the authority to initiate collection actions against you, including: Wage Garnishments: The IRS can garnish your wages without additional warning. Bank Levies: They may seize funds directly from your bank account. Liens on Property: The IRS could place liens on your property, affecting your ability to sell or refinance. Ignoring the CP523 notice can lead to significant financial consequences, such as: Immediate Tax Payment Demand: You could be required to pay your entire outstanding balance in full, which can be overwhelming. Escalating Collection Efforts: The IRS can move quickly to enforce collection actions if you don’t address the notice in a timely manner. Damage to Your Credit: Unresolved tax issues can severely impact your credit, making it difficult to secure loans, credit, or even housing. Steps to Take if You Receive a CP523 Notice While receiving a CP523 notice can feel intimidating, there are clear actions you can take to prevent further issues: 1. Respond Promptly: Time is critical. The sooner you take action, the better your chances of avoiding severe consequences. 2. Review the Notice Carefully: Understand the reason your installment agreement was canceled, the amount you owe, and any deadlines for taking action. 3. Evaluate Your Financial Situation: Take stock of your finances and explore your options for resolving your debt. This might include reinstating your installment agreement, negotiating new terms, or looking into other tax relief solutions. 4. Contact the IRS: Reach out to the IRS as soon as possible to discuss your situation and find out what steps you need to take to get back on track. 5. Consider Professional Help: Navigating the IRS system can be complex, but you don’t have to do it alone. A tax professional like John Bruszewski at Advantage Tax Relief can help you negotiate with the IRS, review your options, and work toward a favorable outcome. Don’t Wait – Get Help Now Ignoring a CP523 notice can make matters worse. It's essential to act quickly and seek guidance from a trusted expert. John Bruszewski at Advantage Tax Relief is here to help you understand your options, negotiate on your behalf, and guide you through the process. Call for a Free Consultation Don’t wait until it’s too late. Call Advantage Tax Relief today at 630-773-3200 for a risk-free consultation and get the help you need to resolve your tax issues and protect your financial future.
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