Never let it be said that if you want something done right you must do it yourself, because it simply isn't true. When you're talking about your taxes, there are times when flying solo isn't advisable. If you're facing a problem with the IRS, you may want to weigh your options. Carefully.
While some minor tax issues don't require assistance, there are many instances when your IRS debacle requires a professional action plan. Determining the severity of a tax concern can be tricky, particularly if you've never had to deal with one. It's a good rule of thumb to consider both the tax problem and the solution before going to bat with the IRS.
Causes for Alarm
Although a great many IRS notices are informational in nature, some bear cautious handling. Assessments of tax liabilities, especially those greater than $10,000, warrant special attention. Similarly, IRS collection actions involving liens, levies and property seizures are not to be ignored. You can't afford to take these events lightly, and you should think carefully before resolving them on your own.
While many taxpayers have an inherent fear of the IRS, an unfortunate few don't respect the full import of what it means to have a tax problem. First, neglected liabilities can trigger penalties and interest which will quickly inflate your total balance - that you will eventually be forced to pay. And IRS collection efforts are not hampered by the same rules that encumber a typical creditor. For while there is no debtor's prison, actions taken against your wages or checking account can leave you in a truly miserable position. Test the IRS' resolve at your own peril.
No matter what type of tax issue you're facing, you have to protect yourself. Once you understand how much the IRS claims you owe and what they're intending to do, you can determine a solution. But is this something you're comfortable handling on your own? Keep in mind that resolving a tax issue takes time. Unfortunately, the IRS also expects you to handle it immediately.
Resolving an IRS concern also requires a certain amount of finesse. Correctly concluding a tax matter means finding a legal resolution that offers you the greatest benefits. In order to obtain an ideal solution, you may want to call upon a licensed tax professional. A tax resolution veteran, such as an Enrolled Agent, understands what immediate action needs to be taken to ensure a cost-effective solution.
You may believe that you cannot afford help from a licensed tax professional but, in the long run, you can end up saving money. Accepting the right resolution early on can help curb some of those penalties, as well as what you end up paying on a monthly basis to satisfy your balance. You also have the advantage of avoiding costly collection actions that can literally wipe out your bank account in a matter of days.
In order to make the most of your situation and understand all of your options, you can request a consultation with a licensed tax professional. Reputable tax resolution companies offer no-cost consultations that will enable you to make an informed decision on how to proceed. The only shame in admitting that you need tax help is if you do it too late in the game.