When to Call a Tax Relief Company
Has tax time become overwhelming?
The stress of tax time can weigh on you year after year. The complicated tax laws, scary penalties, and massive tax forms leave you confused about what you can deduct, how to file your paperwork, and when to call a tax relief company.
Tax season is already stressful enough. Don’t let it become any worse by having to face the tax man or woman when you shouldn’t have. Seek the expertise of a tax relief specialist to help you with taxes, whether you owe money or someone else does.
Keep reading to learn when to call a tax relief company.
Tax Debt Resolution
Tax debt is the amount of money that a person or business owes to the government in unpaid taxes. The Internal Revenue Service (IRS) is the primary agency that collects taxes for the United States government. If a person or business owes taxes to the IRS, they can be subject to penalties, interest, and even legal action.
Tax resolution is the process of resolving tax debt problems with the IRS or state tax authorities. Tax resolution involves negotiating with the IRS or state tax authorities to reduce tax debts and remove penalties. It also involves creating a payment plan to repay the remaining debt.
Tax resolution is a complex and time-consuming process that requires the expertise of a tax relief company. Tax relief companies offer tax debt services. This includes tax resolution, tax preparation, tax consulting, and tax audit representation services.
Paying off taxes can involve lump-sum payments, payment plans, or negotiations. A tax relief company can assist in negotiating payment plans and reducing tax debts.
Back Payroll Tax Resolution
Payroll taxes are taxes that employers are required to withhold from employee’s paychecks. They, then, have to submit it to the IRS or state tax authorities. Back payroll tax debts can arise from unpaid payroll taxes or errors on payroll tax returns.
Penalties and interest charges can accumulate if a business fails to pay its payroll taxes on time. Also, the IRS or state tax authorities may take aggressive collection actions. This may mean placing liens on the business’s assets or seizing bank accounts or property.
Back payroll tax resolution can involve negotiating with the IRS or state tax authorities to reduce tax debts, remove penalties, and create a payment plan to repay the remaining debt.
Back payroll tax resolution involves the following:
- negotiating with the IRS or state tax authorities to reduce tax debts
- remove penalties and interest owed to the IRS or state tax authorities
- resolving unpaid payroll tax debts
- submitting delinquent payroll tax returns
- setting up payment plans, or
- negotiating a settlement agreement.
It is a complex process that requires knowledge of tax laws. Business owners must seek the help of a reputable tax relief company or tax professional.
Business Tax Debts
If your business is facing tax debts, a tax relief company can assist in resolving the debts and creating a payment plan to avoid further financial issues.
If your business is facing tax debts, a tax relief company can assist in resolving the debts. They can also create a payment plan to avoid further financial issues.
Business tax debts are taxes owed by a business to federal, state, or local tax authorities. These taxes may include the following:
- income taxes
- payroll taxes
- sales taxes
- other taxes that the business must collect and remit to the appropriate tax authority.
Business tax debts can arise for a variety of reasons, including the following:
Failure to File Tax Returns
Tax returns are forms that individuals, businesses, or other entities are required to file with the government. They are usually filed on an annual basis. It reports their income, expenses, and other financial information.
If a business fails to file its tax returns on time, it may be subject to penalties and interest on the amount owed. Tax returns may include various schedules and forms. It is also dependent on the type of taxes reported.
Underpayment of Taxes
Tax underpayment refers to a situation where a taxpayer has not paid enough taxes to the government, resulting in an outstanding tax liability. This can occur for various reasons, such as inaccurate tax withholding, failure to make estimated tax payments, or errors in tax calculations.
Payroll Tax Issues
If a business fails to withhold or remit payroll taxes, they may be subject to penalties and interest on the amount owed.
Sales Tax Issues
A sales tax is a tax imposed by state and local governments on the sale of goods and services. Businesses that sell goods or services are responsible for collecting and remitting sales tax to the government, and failure to do so can result in penalties and legal consequences.
Business tax debts can be a serious issue for a business, as they can lead to liens, levies, and other collection actions by the tax authorities.
It is important for businesses to stay current with their tax obligations and to work with a tax professional to ensure that they are in compliance with all applicable tax laws and regulations. If a business is struggling with tax debts, tax relief companies can help them explore their options for resolving their tax debt issues.
Back Taxes
If you have unpaid back taxes, a tax relief company can assist in negotiating with the IRS or state tax authorities to reduce penalties and interest and create a payment plan to repay the remaining debt.
Back taxes are taxes that have not been paid by a taxpayer in previous years, either because they were not filed or because they were filed but not paid in full. These taxes can include federal, state, or local income taxes, payroll taxes, sales taxes, or other taxes that the taxpayer is required to pay.
Back taxes can result in penalties and interest charges from the taxing authorities and can also lead to more serious consequences such as tax liens, wage garnishments, or even legal action by the government to collect the taxes owed.
If you have back taxes, it is important to work with a tax professional to explore your options for resolving the issue. This may include setting up a payment plan with the taxing authorities, negotiating a settlement, or seeking relief through tax amnesty programs or other tax relief options.
Payroll Taxes
If you have unpaid payroll taxes or errors on payroll tax returns, a tax relief company can assist in resolving the debt and negotiating with the IRS or state tax authorities to reduce penalties and interest.
Payroll taxes are taxes that are deducted from an employee’s wages or salary by an employer and are paid to the government on behalf of the employee. These taxes are used to fund various government programs such as unemployment insurance.
In addition to withholding payroll taxes from their employee’s paychecks, employers are also required to pay a portion of these taxes themselves. The employer’s share of payroll taxes includes:
Social Security Tax
Employers are required to pay a matching amount of Social Security tax to the amount withheld from employee’s paychecks.
Medicare Tax
Employers are also required to pay a matching amount of Medicare tax to the amount withheld from employee’s paychecks.
Payroll taxes can be a complex area of tax law, and it is important for employers to stay current with their tax obligations and to work with a tax professional to ensure that they are in compliance with all applicable tax laws and regulations.
Tax Lien Resolution
If the IRS or state tax authorities have placed a lien on your property or assets, a tax relief company can assist you in removing the lien and resolving the tax debt.
A tax lien is a legal claim or encumbrance placed on a person’s property or assets by a government tax authority, such as the Internal Revenue Service (IRS) or state tax department, to secure payment of unpaid taxes.
When a taxpayer owes back taxes, the tax authority may file a lien to claim the taxpayer’s property as collateral until the tax debt is paid in full. This means that the taxpayer cannot sell or transfer the property without first satisfying the lien.
Tax liens can be filed on real estate, personal property, bank accounts, and other assets. They can have a negative impact on a person’s credit score, making it difficult to obtain credit or loans in the future.
Once a tax lien is filed, the taxpayer has a limited amount of time to pay the tax debt or work out a payment arrangement with the tax authority before the lien is enforced through a seizure of the property. It is important to address tax liens promptly to avoid escalating penalties and interest and to protect your assets.
Wage Garnishment
If the IRS or state tax authorities have begun to garnish your wages, a tax relief company can help you negotiate a payment plan or reduce your tax debt to prevent wage garnishment.
Wage garnishment is a legal process by which a creditor, including the government or a tax authority, can collect unpaid debts directly from a person’s wages or salary.
In the case of tax debts, the Internal Revenue Service (IRS) or state tax authority may use wage garnishment as a method of collecting unpaid taxes. When a wage garnishment order is issued, the employer is required by law to withhold a certain percentage of the employee’s earnings and send that money directly to the creditor until the debt is paid in full.
The amount of money that can be garnished from a person’s wages varies based on the type of debt and the laws in the specific state or jurisdiction. Generally, the creditor must first obtain a court order or a judgment against the debtor before wage garnishment can occur.
Bankruptcy
Bankruptcy is a legal process that provides individuals and businesses with relief from debts they are unable to repay. It is governed by federal law and is typically filed in a federal bankruptcy court.
Filing for bankruptcy can have significant consequences, including damage to credit scores, loss of property, and the inability to obtain credit in the future. However, for those who are overwhelmed by debt and have no other options, bankruptcy can provide a fresh start and a path to financial stability.
If you are considering filing for bankruptcy to resolve your tax debts, a tax relief company can provide guidance on the tax implications of bankruptcy and help you determine if it is the best option for your situation.
Tax Audit
If you are facing a tax audit from the IRS or state tax authorities, a tax relief company can provide representation and guidance throughout the audit process.
A tax audit is an examination of an individual’s or a business’s tax returns and financial information by the Internal Revenue Service (IRS) or state tax authority to ensure that the information reported is accurate and complete.
The purpose of a tax audit is to determine if the taxpayer has complied with the tax laws and regulations and to assess any additional taxes, penalties, or interest that may be owed.
During a tax audit, the IRS or state tax authority may review a taxpayer’s income, deductions, credits, and other financial information to verify that they have been reported correctly. The audit may be conducted through correspondence, over the phone, or in person, and can take several weeks or even months to complete.
There are several types of tax audits, including:
- Correspondence audit
- Office audit
- Field audit
If you receive a notice for a tax audit, respond promptly and provide all requested documentation to the IRS or state tax authority.
Consult a Tax Relief Company Now
Tax debts can be a significant source of stress and financial problems for individuals and businesses. Tax relief companies can provide assistance in managing tax debts and navigating the complex world of tax resolution.
If you are facing any of the situations listed above, it may be time to call a tax relief company to help. Find a solution and avoid further financial issues!
It is important to note that not all tax relief companies are created equal. Some may make false promises or charge exorbitant fees. Do your research and choose a reputable and experienced tax relief company.
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