An IRS notice can be quite a stressful experience. Before figuring out what went so wrong that the IRS wishes to investigate, the individual or business reading this letter must first immediately identify the next steps. Through the uncertainty, you as the letter receiver must maintain calmness to decipher what the IRS needs, and take prompt decisions accordingly! One of the most essential steps in this regard is enlisting the services of an expert…
Hiring an expert tax consultant in West Houston, TX gives you access to strategies and options that can easily navigate any IRS requirement. Whether it’s an unexpected tax bill, a notice of overdue taxes, or a potential impending penalty, options exist to reduce any adverse impact and handle the IRS accordingly! Specifically, 4 unique options are available to immediately reduce the adverse impact of an IRS action. Here’s how they work…
Levy Release
To satisfy tax debt, the IRS might just legally seize your property. For individuals, this may involve garnishing wages. For businesses, funds from the bank and other assets are fair game. If an IRS letter indicates that they have taken this action, quick action is crucial! Your tax expert can assist in negotiating a levy release to the IRS. This hinges on demonstrating that the action is causing undue hardship, and can instead be best answered by an alternative payment arrangement.
Lien Release
An IRS lien is another such claim against property to secure payment of a tax debt. Liens tend to adversely impact credit scores, sale prospects, and even refinancing prospects! If the IRS is considering a lien, it’s in your best interests to negotiate a release! A tax consultant is keenly aware of this process and can identify how the debt can be paid off. In fact, paying off the debt in full is a much more straightforward way to obtain a lien release. Alternatively, it can be negotiated that the lien will in fact make tax repayment harder, and thus a release is necessary.
Lien Subordination
While lien subordination doesn’t remove the lien, it allows other creditors to move ahead of the IRS in priority for certain properties. This can be quite a useful prospect if you require refinancing, or even to obtain a loan to pay off tax debt! Overall, lien subordination can improve the current financial situation immensely, while also effectively resolving tax debt. However, this process requires that an expert tax consultant is involved to negotiate your interests and get the best outcome possible.
Penalty Abatement
An IRS letter that indicates penalties might lull you into a false sense of comfort, especially when all the other adverse impacts are considered. However, tax penalties quickly add up, and may balloon into a difficult amount. Penalty abatement is thus a provision that allows for the reduction or complete elimination of penalties, but only under certain highly specific circumstances. Tax consultants focus on negotiating and demonstrating a reasonable cause to handle this situation!
While an IRS letter and associated action might be stressful, navigating it with expertise is essential! A swift response can have a game-changing difference here. With the assistance of a tax consultant, you gain access to nuanced strategies not usually considered by many. However, in your case, they might be the smartest possible decision in that scenario.
After having answered an IRS letter, it’s time to figure out what went wrong and prompted the action in the first place. A continued working relationship with an expert tax consultant can do just that – avoiding any future potential issues entirely!
