Here at Proctor & Assocs., our goal is to help you with all of your accounting needs, and one of the many things we can assist you with is tax resolution. In this article, we will provide a basic overview of what tax resolution is and how it works so that you can be prepared should you ever find yourself facing it.
What is Tax Resolution?
To put it simply, tax resolution is the process of working with the IRS to find a solution to any tax problems you may be facing—e.g., the tax problems that made the IRS take an interest in you or your business in the first place. Some issues that often lead to tax resolution include a complicated or confusingly filed tax return, or suspicion that you have underreported your income. Some of the forms that tax resolution can take include:
- Audits – If the IRS feels like something isn’t adding up about your tax returns or that you have made a mistake in filing, it may audit your finances to check and correct your numbers. Being audited doesn’t mean that you’ve done anything wrong, so don’t panic–and for good measure, call our team to help you through this process.
- Transcript Protest – In some aspects, this is like the opposite of an audit, as it essentially involves you telling the IRS that it made a mistake in its calculations.
- Non-Collectible Debt – A third form that tax resolution can take is a form of relief known as non-collectible debt. If you owe the IRS more than you can reasonably pay back and still afford key living expenses, you can apply for this status, which essentially says that the IRS won’t try to collect that debt for the time being, giving you time to get to a better financial position.