What is a tax resolution?

Tax resolution is the process of developing and executing a solution to resolve a taxpayer’s IRS problem for both individuals and businesses. In the truest sense, the ideal resolution will solve the challenge permanently and settle the tax burden for the lowest amount allowed by law.

There are quite a few distinct possibilities the taxpayer has at their disposal to sort out their tax problem with the IRS. However, relatively few taxpayers are aware of the options. Often, the taxpayer is not effectively informed by the IRS of all alternatives, let alone which option may best match the taxpayer’s individual situation. This is notwithstanding both guidance and rules from the U.S. Senate Finance Committee overseeing the IRS.

Amond resolution choices are filing missing tax returns, disputing the tax on technical grounds, requesting for penalty abatement, filing bankruptcy, negotiating an installment agreement, negotiating an offer in compromise, requesting for innocent spouse relief, determining the expiration of the collection’s statute, and being placed in currently not collectable status.

One of the most popular choices is the Offer in Compromise option. This permits a taxpayer who is obliged to pay more than they can afford to pay the chance to settle their tax debt for a fraction of the total. While the United States Congress has directed that the IRS establish a assortment of programs to ensure justice within the voluntary U.S. tax assessment system, the IRS is repeatedly tested with balancing the two disparate objectives:

• Guarantee taxpayer conformity and collection of tax profits to fund operating the Federal government.
• Deliver and oversee programs giving the taxpayer with significant tax problems a clean slate.

While this is not unexpected in an organization as vast as the IRS, the significant system and process deficiencies continue to hinder collections and affect the accuracy of taxpayer accounts. Consultations with taxpayers, practitioners, and IRS employees over years show that there is still much work to be done to realize a sensible and reasonable method.

Isom Accounting and Tax CPA firm provides tax resolution assistance to individuals and businesses. We are located in the Inland Empire of the Southern California, and offer our tax debt help services nationwide.