A lot of people have issues with their taxes—they haven’t filed for a year, or a few, or just realize they made an error sometime in the past. As an individual, you can sort through things alone—there is probably even a video on YouTube with someone giving step-by-step instructions on exactly how to do-it-yourself! But, even at that, it may just be too overwhelming! At what point does it become an issue too difficult to handle on your own?
If you’re wondering if your situation merits a tax resolution company, below are some indicators that it’s time to consult a professional:
Your wages are being levied (or garnished). Garnished Wages (this will link to the first post about garnished wages) are when money is taken from your payroll to pay off a debt. This is probably one of the most common reasons a person needs to consult a tax resolution company or tax attorney as soon as possible! If you’ve reached this point, you are at least a few years behind on filing or paying your taxes, and you have failed to respond to notices from the IRS. When the IRS starts garnishing your wages, it typically means that things have gotten pretty serious. A professional can help you figure out exactly where you stand and where you need to start to stop the levy right away!
Your case has been assigned to a Revenue Officer. If you have an IRS Revenue Officer assigned to your case, then you need to get a move on it! Once your case has been assigned to an actual person, this is an indicator that aggressive measures are and will continue to be taken in order to gain your compliance. For many people, this is when a tax case becomes overwhelming and consulting a tax professional to help interact with the officer is a smart idea. A tax resolution company can make sure that your tax issues to not rise to the next level—levies and other penalties.
You run a business that owes payroll taxes. Aside from the crippling debt compounding interest can put your business in, if you owe payroll taxes, you can lose your business very easily. Small businesses, in particular, have been deemed the most likely place for tax evasion, and have left the IRS looking suspiciously into the dealings of many small businesses, especially when it comes to payroll taxes. If you owe payroll taxes, it is nothing to take lightly, as the doors of your business could be closed without a warrant and without your permission. A tax resolution company has professionals who know the ins and outs to help you save your business before it’s too late. Note: Unpaid payroll taxes ares an extremely serious matter. When you have not paid payroll taxes, the taxes attach to the Officers or Directors of the company directly and cannot be removed in bankruptcy. The IRS views this just like stealing and can bring criminal and/or civil charges against you directly.
You haven’t filed your returns in many years. You may not have someone from the IRS breathing down your neck, but for years you have been dragging your feet and are now too overwhelmed to do it alone. Also, you may be unaware that when you fail to file your tax returns, the IRS files a Substitute Filed Return (SFR) on your behalf. Often, Substitute Filed Returns do not take into account the individualized exemptions and deductions available to you as a taxpayer. Most of the time this will leave the you (the taxpayer) owing more in back taxes than if you filed them yourself. You can successfully file all of your outstanding returns on your own. But, the interest rates are high for years of unpaid taxes, and may be even higher if you are paying based on the SFR. A professional can help you file your taxes accurately, and guide you to the solution that is the least expensive for you.
And, of course, there are issues that you can resolve on your own! But, you may feel more confident with the advice of an expert to lean upon. The good news is that many tax resolution companies offer free consultation services for this reason alone—to help you figure out if you even need their help!
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.