Don't Overpay Tax Resolution Companies Resolving your tax debt is not always an easy task and in some cases requires help from a tax professional. Tax debt resolution services can be pretty expensive, which often increases financial burden on a struggling taxpayer. This article provides a few tips of how to resolve your tax debt for less money. The rule of thumb in any tax resolution is to show compliance. In other words, the IRS wants you to file all missing returns and to stop falling behind on tax payments. Until you comply with these two requirements, nobody can really help you to settle your tax debt. In some cases it might be possible to buy you some time without enforced collection IRS activity, even if you have not met these requirements, but just for a limited amount of time. If you really want your tax debt to be resolved, you need to file all missing returns and find a way to stay current with all new tax obligations. If you decided to hire a tax representative to take care of your debt, it is a good idea to have all missing returns filed before you pay your retainer. Bear in mind that the IRS
usually takes from six to eight weeks to process filed returns. In some cases you might need to contact the IRS office assigned to your case and inform them that you recently filed returns. If the IRS representative does not place a hold on enforced collections to allow sufficient time for processing of your returns, you can request it yourself. The next step is to make a decision of which company to use. Checking the company's BBB rating, calling references and reviewing a list of the company's resolved cases are the best ways to make a decision. Many companies also provide free consultations, which is also a good way to determine whether or not this particular tax representative satisfies your requirements. After you have made a choice and paid your tax representative to settle your tax debt with the IRS or a State Department of Revenue, you will be supplied with a number of documents and a deadline to have them completed. It is important to understand that the IRS makes its decision about your proposal based on your financial situation. If you do not provide any documents to support your case, your tax representative will have difficulties negotiating with the IRS on your behalf. The best way to save your money is not to make your tax resolution specialist send you numerous letters reminding you about financial information you need to provide. Try to respond to all requests for financial documents on time and provide all required information. Do not be afraid to disclose more information than necessary. Your tax
representative will review the documents you provided and make a decision on what needs to be sent to the taxing authorities to support your proposal. Another way to save you lots of money and avoid stressful conversations with the IRS and your tax representative is to stop falling behind on taxes. You should remember that any new tax liability results with an automatic default of your existing repayment agreement with the IRS or State Department of Revenue.