Some widely used IRS Resolution Methods to Fix Your IRS Issues

Posted by IRS on September 23rd, 2022

Tax season can be challenging for ex-pat taxpayers, especially if they want to file returns accurately and on time. However, problems with the IRS can arise and make it more difficult to maintain. It pays to know what types of tax problems you may face, as well as the types of resolutions available to you if you do. This article will provide you with an in-depth guide on common IRS tax issues, as well as IRS resolution methods you can use to resolve your IRS tax issues.

Tax issues can arise in a variety of situations. Different tax resolution methods exist to address specific issues or situations. Deciding on the gorgeous tax resolution technique will rely on the specifics of your situation.

Installment Agreement

Under an installment agreement, you agree to pay your entire tax debt in monthly installments over up to six years. This method is popular because it breaks down the debt into smaller, manageable amounts over some time. It also allows you to avoid late payment penalties and fees, preventing overspending.

Several short-term and long-term payment plans are available for this contract Once the tax debt is paid in full, any tax liens against you will be released by the IRS resolution, bringing you back to a current and compliant status.

A partial salary installment agreement

A partial payment installment agreement is similar to a regular installment agreement, except for one key difference. In a partial payment installment agreement, you can make lower monthly payments than in a regular installment agreement.

You must file all previous tax returns and be current with your tax withholding or estimated tax payments.

Once this Agreement is in effect, you will be subject to a financial review every two years to determine whether your installment payments will be increased if your financial situation improves.

Currently not collectible status

You may be unable to settle your tax debt due to certain circumstances including financial difficulties. When it is clear that your expenses are too high and you are unable to meet the basic needs of your income.

However, the IRS resolution will require proof of "substantial hardship" for you to receive this status. This includes documentation of unused assets, monthly income, and necessary living expenses. When currently uncollectible status is active, it stops the IRS from collecting your tax debt.

File return

One of the most straightforward IRS tax resolution methods is to properly file your tax returns. You may have a tax debt due to penalties and interest charged on late or missing tax returns. Keeping your tax filings current and compliant is the best way to address these issues and possibly uncover other issues or missed benefits in the process.

Whether you're doing your taxes or working with tax professionals, it's essential to get your filings and payments in order. Problems with the IRS can arise if you fail to comply with or properly file your tax obligations.

If you find yourself with tax problems, knowing your options for solving them can save you a lot of trouble. In this article, you can get the knowledge of some IRS Resolution Methods to solve your IRS issue.