Resolving tax debt is not difficult if the right steps are taken from the start. Some of the common mistakes taxpayers make when resolving tax debt are to apply for the wrong payment plan or to hire incompetent tax help. The IRS charges taxpayers a penalty for applying for a payment plan a they clearly are not eligible for.
Hiring a dishonest or an incompetent tax service can prove disastrous, because the case becomes more complicated, and both time and money is wasted. Therefore, it is vital that taxpayers ensure that every step towards resolution is taken after carefully considering the effect it will have on the case, including the hiring of professional help.
Tax debt resolution is achieved by qualifying for a tax debt payment plan if the taxpayer cannot pay the full debt amount in a lump sum. The IRS encourages taxpayers to pay in full with a single payment, but taxpayers should make sure that they find the most comfortable way to resolve their tax debt. To do this, they need to know the qualifying factors and resolution criteria of all the various IRS debt payment plans such as Offer in Compromise, Guaranteed Installment Agreement, Partial Payment Installment Agreement, and Currently Not Collectible.
To successfully resolve tax debt, it is essential to have deep knowledge of IRS policies regarding tax debt resolution, tax laws and the specific tax code that affects the case. Taxpayers may resolve their case themselves if it does not require specialized knowledge and skills. Otherwise, it is best to hire a tax resolution service that has experienced and competent tax lawyers.