The two-word term, tax resolution, is very broad in scope and covers a lot of different topics. For the most part, the two-word term is referring to fixing problems with the IRS. The types of problems that people get into with the IRS are quite broad as well. Sometimes the problems start off small and get big because their issue was never fixed in the first place. In tax resolution, a common problem that always starts off small then grows bigger is having un-filed federal returns. People who fail to file their returns usually don’t file a federal return for one year, then often fail to file for a second year, then fail to file for the third year and so on. The problem of not filing a federal return grows bigger each year, and that leads to lots of other larger problems like wage garnishments, bank account levies, federal IRS liens, years of compounding interest and an array of penalties.
The most common problems that people have with the IRS that require them to get tax resolution help from a professional are as follows:
- An IRS Audit.
- Having years of un-filed returns.
- Getting letters from the IRS.
- Wages are being garnished or they are about to be garnished by the IRS.
- Bank account levies where the IRS is about to or has already taken money from their account.
- A federal IRS lien.
- Small business tax problems, which are problems like not paying 940 and 941 taxes. This also includes not filing 940 and 941 returns.
- An IRS Revenue Agent or IRS Revenue Officer goes to someone’s home or place of business.
- Owing money to the IRS.
- Problems with EIC credits.
The items listed above are not the only problems that a person can have with the IRS, but this is a good listing of the most common problems that people have with the IRS that call for getting tax resolution help from a professional. Many of the problems in the above list branch off from one of the other problems. For instance, a wage garnishment can branch out from having un-filed federal returns. Thus, fixing the un-filed federal returns problem by getting the returns prepared and filed by a professional can prevent the wage garnishment problem from ever starting. IRS problems are just like IRS interest, they compound daily and they grow relentlessly.
When seeking out tax resolution help, people should look for a company that has Enrolled Agents and hire that company to fix their IRS problem. The IRS licenses Enrolled Agents, and that gives an added level of accountability back to the client. Enrolled Agents have knowledge about IRS procedures, regulations and codes. They also fall under the watchful eye of the IRS. That means that the client can better ensure that the person working on their IRS problems will have a higher level of professional responsibility. Enrolled Agents also have a higher chance of getting better results because of their knowledge and experience in dealing with the Internal Revenue Service.