Tax Resolution Explained

Last year, the IRS issued over 100 million refunds totaling over $345 billion. This year, the IRS anticipates that over 150 million will file for taxes for 2022. With so much focus around tax filing and returns, oftentimes people need more understanding in areas such as tax resolution.

You may be wondering, with so many different things going into the tax filling process, what would ever happen during other parts of the year when you may hear the unexpected from the IRS? They may ask you things regarding your income reporting, unpaid or unfiled returns, and more.

What is Tax Resolution?

The concept of tax resolution usually consists of you and your accountant working with the IRS to find a solution to and resolve your tax problems. This can be triggered by many different things and can often be found in highly complicated or highly outdated returns.

The major benefit of having a trusted accountant navigate your tax resolution, is their ability to have great knowledge of the Internal Revenue Services’ tax resolution processes, required information, and tax records.

Back Taxes Owed

One of the most common types of tax resolution you may encounter is owing something known as back taxes. This can happen when you might be filing your taxes each year, but not paying back the taxes you owe, either partially or entirely. Over time, penalties and interest can compound to contribute to a pretty large sum over the years.

Eventually, the IRS will contact you and can even place liens on property and levies on any bank accounts you may have. A great deal of financial damage can come from owing taxes back to the IRS, but sometimes it can be avoidable.

With North Georgia Tax Solutions, we can help you by assessing your past tax filings, records, and work to negotiate a payment plan, reduce or remove penalties, or negotiate a work-out with the IRS (or state!) to help you find the road to financial recovery.

Audit Representation

Have you already received a notice of audit or examination from the IRS? Not to worry! Another common form of tax resolution is audit representation, this prevents you from dealing with the IRS alone. Get experienced help with your audit and examination by having a professional associate review your records and filings in order to better represent your business to the IRS. Oftentimes, this can prevent many taxpayers from losing money in the audit process, and even speed the process up.

Got Unfiled Returns?

Oftentimes, people think that if they won’t be able to pay the taxes owed, they should avoid filing just yet. This could not be further from the truth; you should always file on time, no matter what. That being said, if you have unfiled tax returns that you have been sitting on, then you’ll want to seek out tax resolution in order to work out a payment plan or offer in compromise. In order to get to the point of resolution though, you must file first.

Need Help With Your Tax Resolution?

Not sure who to turn to for tax resolution? North Georgia Tax Solutions is here to help! Our team is qualified and ready to help you deal with many types of tax resolution, visit our website to contact us today!