Americans owed over $100 billion in taxes in 2021. That’s a lot of money that could have gone to building roads and repairing bridges. It could have helped schools and teachers or military personnel and veterans.
But the people who owed it didn’t pay up. You can avoid being part of that statistic by hiring tax resolution services. It can help you stay on the IRS’ good side and out of trouble.
Here are some signs you need to hire a professional team.
If you’re owed a refund, you have three years to claim it. On average, the IRS will send out refunds within a few weeks of receiving all necessary information from the filer. However, they may take longer if they need to research certain situations or if they ask for additional documents.
There are limits to how much money you can get. These limits vary for married couples, singles, and heads of households.
2. Tax Liens
If you have received a notice of tax lien, it means that the IRS has filed to claim your property. A tax lien can prevent you from selling or refinancing your property.
To remove this lien, contact an attorney who specializes in handling cases like yours. They will ask for other information as well, like what kind of income you make and how much debt you have.
You may also need to hire an accountant and a lawyer, depending on what type of tax problems you’re experiencing. The accountant can help plan your taxes and ensure that all the information is accurate. A lawyer will represent you in legal battles to reclaim your property.
3. IRS Audits
The IRS can audit anyone, but they don’t go after every taxpayer. They use sophisticated software programs that look for patterns in taxes owed, or credits claimed that may suggest fraud or abuse.
So if you have a pattern of claiming over $10K in charitable donations every year, expect to be audited because this is more than people typically claim for their income level. The same goes for someone claiming low-income housing credits on properties worth millions of dollars. These situations raise red flags for the IRS and will get them interested in investigating further.
4. Backed-up Taxes
If you owe over $100,000 in back taxes, the IRS may negotiate with you on a payment plan. You’ll be given a short-term payment plan, and you’ll have less than 180 days to pay it. However, this is only one of the tax solutions they’ll offer you.
If you owe $50,000 or less, then you can receive a long-term payment plan. The time you have to pay back will depend on your income and your history with the IRS.
Another option is to have the IRS levy your bank accounts, garnish your wages, and seize your property. You can avoid this by hiring tax professionals who can help negotiate a payment plan. Professionals can ensure that you don’t end up owing more than you can afford.
5. Not Filing Taxes
If you haven’t filed your tax returns in years, it’s time to get help. Filing taxes is a legal requirement, and failing to do so can result in penalties.
Any individual with an income can use the Free File link to request a tax extension. You’ll have until October 15th to file. You should note that this filing date is subject to change without notice.
You can also extend your filing deadline by paying part of the estimated tax you owe. When you do this, indicate that it is a payment to cover an extension. The IRS will confirm receipt via letter or email.
There’s no need to fill out a separate form for your extension with this method.
You should know that an extension of time to file your return does not extend the period in which you’re required to pay taxes. To avoid penalties, make sure you send in your payment when taxes are due. The due date is usually in April.
6. Low on Funds
Although we all have an obligation to pay our taxes, sometimes life gets in the way of paying what you owe. If you’re having trouble making ends meet, there are resources available to help you resolve your tax debts through payment plans.
The best tax resolution services can provide tips on how to file for an extension and pay your taxes. One of their suggestions might be to figure out what you owe. It may be less than what you think.
Then you can move forward by filing an installment agreement with the IRS. If you can’t pay the installments, pay what you can afford. The IRS will send you a bill for the balance due.
7. Criminal Charges
The IRS may impose a penalty for failure to file. However, if you’re convicted of tax evasion, the penalties may involve imprisonment. It’s important to get in touch with your tax attorney immediately.
There are steps you can take before any legal proceedings begin. The longer you take to get in touch with an attorney, the less likely they will be able to help you successfully resolve your case.
Contact Tax Resolution Services
If you’re facing any of the above circumstances, you must seek professional help from a tax resolution service. Tax resolution services can help you navigate through these difficult situations and avoid prosecution.
The IRS is very strict when it comes to tax collection. They will not hesitate to sue you if they believe that you’re not paying your taxes or using illegal methods to avoid paying them.
The politics surrounding taxation is a controversial subject. For the latest in political news, check out our politics section.