Tax Problems Resolution

Since tax problems come in a wide variety, there is not just one tax problems resolution. One size does not fit all problems so it is important to consult a tax professional. The following is just a list of tax problems and their possible resolutions.

Negotiation Style Tax Problems Resolution

Sometimes it is best to negotiate with the IRS with the process of tax problems resolution. Here is a list of options:

Offer In Compromise

One tool at  taxpayers’ disposal is an Offer in Compromise. An Offer in Compromise (OIC) allows you to settle your tax debt for less than the amount you owe. Offer in Compromise was created for those in tax debt that could not pay off their debt in full without experiencing financial hardship in doing so.

Currently Non-Collectible

Another negotiation style tool is applying for a Currently Non-Collectible status. If you agree that you owe money to the IRS but your financial situation makes it impossible to pay what you owe without causing financial hardship; therefore, you may qualify for a Currently Non-Collectible status. 

Currently Non-Collectible
Penalty Abatement

Penalty Abatement relieves you from facing penalties for failing to file tax returns or make payments on time as an individual or failure to deposit certain taxes as a business.

Installment Agreement

IRS Collection Tools for Tax Problems Resolution

Besides allowing the taxpayer to negotiate settlements, the IRS has collection tools at their disposal for tax problems resolution.

For example, if you cannot pay your tax bill in full, there are many different types of IRS installment agreements available. All of them have their own benefits. Consequently, the IRS may allow you to break down your debt into monthly installments.

Installment Agreement
Partial Payment Installment Agreement

With this option, the IRS may agree to allow you to pay only a portion of your debt over an allotted amount of time. With IRS payment plans you are paying an amount less than the original tax debt amount.


Federal Tax Lien

IRS Lien and Taxpayers' Options for Tax Problems Resolution

Furthermore, the IRS possesses the ultimate collection tool: liens. By attaching a lien to a property, the IRS almost secures the collection of a tax debt. Moreover, tax problems resolution can have positive or negative consequences to the taxpayer. The following lists the more negative outcomes:


A Federal tax lien affects your financial assets, personal property and your real estate property. Tax liens can vary based upon your individual situation. They are the government’s way of protecting their interest in case you fail to pay your tax debt in a timely manner.


Federal Tax Lien
Tax Lien Discharge

However, the tax lien discharge removes the IRS’ tax lien from a specific property. If you request a tax lien discharge and the IRS accepts your request, they will give you a Certificate of Discharge.


Tax Lien Subordination

Furthermore, a tax lien subordination gives a creditor the opportunity to move ahead of the IRS in their claims against a property. Doing so may be necessary for real estate transactions such as a mortgage refinance.

Tax Lien Subordination
Tax Lien Withdrawal

Moreover, you maybe eligible for a tax lien withdrawal if you have entered into a direct debit installment agreement or have come to some sort of an agreement regarding your tax debt with the IRS.

Wage Garnishment Release

Releases for Tax Problems Resolution

However, there are various releases and reliefs the taxpayer can apply for to satisfy a tax debt without surrendering properties to the IRS. Tax problems resolution comes in various forms according to each situation.

Firstly, the IRS can obtain a wage garnishment against your wages and earnings through your employer to satisfy a tax debt. When you obtain a wage garnishment release, the IRS agrees not to take any part of your wages to satisfy your tax obligation.

Wage Garnishment Release
Bank Levy Release

Secondly, a bank levy gives the IRS the ability to freeze your bank account and collect whatever money you have in that bank account to pay toward your tax debt. Thus, a bank levy release will release your bank account so the IRS does not seize any more funds.

Innocent Spouse Relief

Reliefs for Tax Problems Resolution

First, a Innocent Spouse Relief relieves you from paying any penalties, interest or taxes for which your spouse is ultimately responsible for.

Innocent Spouse Relief
Statute Of Limitations

Second, the statute of limitation is the time period established by law for the IRS to assess, review and resolve any tax related issue. Once the time period passes, the IRS forfeits any claim. How can the statute of limitations impact your tax debt situation? 

Collection Appeal

Third, a Collection Appeal allows the taxpayer to challenge the IRS’ actions for the collection of past taxes, including the placement of liens on the taxpayer’s properties. In many cases, this challenge will stop or reverse any collection processes and relieves you of any collection actions. Click here to learn more.

Collection Appeal
Administrative Appeal

Fourth, an administrative appeal allows you a second chance to reverse or stop an IRS’ decision or action that is unfair or incorrect. This may lead to a more favorable outcome for your tax situation. Click here to Learn more.


Business Related Tax Problems and Resolution

Since businesses are their own “entity” for the most part, the owners have special obligations. By not meeting these duties, owners may need tax problems resolution themselves.

Lawyer Reading

To begin with, the term “Trust Fund” has a different meaning when applied to employment tax rather than to wealth management. This is the payroll tax amount assessed to the officers of the business. Tax resolution can help reduce and/or arrange the payment of these taxes. Learn more about trust fund penalty.

Trust Fund Penalty Assessment

Next, a Trust Fund Recovery Penalty is implemented by the IRS to encourage business owners to pay their employment taxes. When someone owns a small business and they fall on hard times, they may feel tempted to tap into the tax funds that they collected from their employees to stay afloat. This action has dire consequences. Learn about trust fund recovery penalty assessment.

Trust Fund Penalty Assessment
Trust Fund Penalty Assessment Interview

Moreover, a Trust Fund Recovery Penalty Interview and investigation permits the IRS (Internal Revenue Service) to collect unpaid taxes from businesses and assets of the individuals involved in the finances of the business. Read more to get help with trust fund interview.

Current Due Process

Meanwhile, a Current Due Process hearing could be your last chance to resolve whatever tax controversy you have with the IRS.

Current Due Process
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