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Hiring a tax service to help you get out of debt is a good idea. Tax relief services provide many benefits to a taxpayer that is having trouble with the IRS. Many times a tax relief service is able to get a better deal with the IRS than an individual taxpayer could. Taxes are complex and there are many different ways to approach handling tax debt. Depending on the method chosen the outcome can be significantly different; it could even be the difference of paying thousands less in taxes. Before you start looking for a tax relief service you will want to know how the process works. When you know what to expect from start to finish it is easier to get in the right frame of mind.
Every tax service is different. Not to mention the fact that your situation will dictate some of the steps. That being said, the basics of how a tax service works are as follows:
1. Free consultation. This is a big deal because it gives you the chance to meet with a tax resolution professional that can put your mind at ease and answer all your questions. In most cases a consultation will last no longer than one hour. This is usually more than enough time to decide if moving forward would be in both parties best interest. In the consultation you will be given the suggested course of action, likely outcome and a quote for their services.
2. Make a decision. Do you want to hire the service that you consulted with? If so, you are closer than ever to getting the tax debt help that you want and need. As soon as you sign on you will be assigned a dedicated professional who can help you with your case from start to finish. Sometimes it is a good idea to talk with multiple different tax professionals and get there take on your situation before making a decision. Also, depending on the company and types of tax professionals they use the cost of the service can be significantly different for the same service provided.
3. The tax resolution process. This is when you decide how you are going to get out of IRS debt. Will you opt for an offer in compromise? How about an installment agreement? Your tax debt professional will make sure you are in compliance with the IRS as well as your state. From there, with the help of your team, you will decide how to proceed.
4. Once your filing is accepted by the IRS you will be in good shape to move forward. As long as you stay in compliance you do not have anything else to worry about. Of course, your professional will also tell you how to move forward to ensure that you do not run into any future problems.
You can get all the tax debt help you need by hiring the right service. Once you are ready to get involved with a tax resolution service, start at step one above.
Do you need tax debt help? Well, take a deep breath. One experience you never want to have is getting a letter from the IRS informing you that you owe income tax debt. It can be a real shock to get such a letter. However, I can say from personal experience that it may not be as bad as you first think. If you owe the government back taxes, first of all don't panic, relax, the IRS is helpful and will work with you to resolve your income tax debt.
In my case my ex-wife had claimed my son on her taxes in 2006 without telling me, I won't try to explain why she did that, (I have trouble explaining most of what she does). I had been the sole legal guardian of my son for some 15 years and things had not changed in any way in 2006. Nevertheless, after talking with IRS representative, it became evident that I would have to prove that my son lived with me, and that I took proper care of him.
This involved filling out an income vs. expense form, getting forms from his school showing he lived at my address, and supplying a copy of my 2006 income tax return and other personal information. The IRS representative who worked on my case was patient, helpful and objective. After I submitted the proper forms the debt was quickly canceled. After everything was settled it became evident to me that I did a lot of worrying and stressing over something that was resolved without an attorney, just with the aid of the IRS professional and only about five or six hours work. Ok, my case was fairly simple and was easily worked out. The point of my story and my aim in telling it is to demonstrate that if you owe the IRS taxes it doesn't mean that you are under some form of attack or that anyone is out to get you. The only real damage done may be the stress you put yourself through, so take your time and gather all the facts of your particular situation and adopt a wait and see attitude after you have submitted all relevant information.
Tax debt is something that you can't escape through bankruptcy, but if there's no mistake and you really owe the money, the IRS may be willing to work out a repayment plan or settlement of some sort. You may need to borrow some money from the equity in your home. If that's not possible, you may have some personal items you can sell, a late-model automobile you can trade out of, or possibly a relative who can help you out over the short-term.
If the sum owed is a considerable amount, it is very advisable to consult a tax professional who can examine your case in detail and discuss various solutions. A tax professional can help you submit whatever documentation is needed to process your case. Check the author's section below for a professional, quick and free online tax debt help consultation.