Intro
Are you facing tax debt or IRS tax problems in Denver or any other region of Colorado state? Do you want to save money on your tax bill and want to mitigate the looming threats of fines and penalties with tax resolution services?
Our tax debt relief professionals at V-Tax Services provide solutions for state or IRS tax problems that seem irresolvable and challenging. In this article, we will explain the possible options for tax resolution to achieve tax debt relief in Denver by availing the services of a leading tax advisory firm, V-Tax Services.
IRS Tax Resolutions
If you want to eliminate IRS tax notices for tax debt, tax levies, and back taxes, you need to approach a tax advisory firm like V-tax Services in Denver for tax resolution services. Our tax professionals offer multiple tax relief services, including Offer in Compromise (OIC), Fines Abatement, Currently Not Collectable (CNC), Installment Agreement, or any other option for tax relief.
In addition to tax resolution, V-tax Services offers personalized services for tax planning, preparation, and filing for personal or business returns, regardless of the size of outstanding tax obligations.
We can protect you from the severe consequences of a lack of tax filing by applying suitable solutions and dealing with tax authorities to give you peace of mind. Hire V-Tax Services experts to shift tax-related affairs on our shoulders and concentrate on your business, personal life, and obligations.
Tax Relief With Tax Resolution Options
Relief in the state or IRS taxes is possible; however, it depends upon the taxpayer's ability to pay now or in the future. Tax relief can also be validated in situations that cause liability or errors the taxpayer, or the taxation authorities make.
The Experts at V-Tax Services evaluate your outstanding tax obligation and propose the most suitable solution to help you out of tax loopholes. The following options for tax resolution:
1. Offer in Compromise
An Offer in Compromise (OIC) enables taxpayers to resolve their tax debt for less than the total owed, especially when full payment becomes cumbersome for you. This is an agreement between taxpayers and the Internal Revenue Service (IRS) to settle tax liabilities for a reduced amount.
The IRS will agree to an OIC with the following three conditions:
● There is uncertainty that the IRS can collect the full amount owed
● There exists a valid uncertainty regarding the accuracy of the owed amount.
● The compromise promotes efficient tax management.
The Aim of an OIC
The Offer in Compromise aims to reach a settlement that benefits both the government and the taxpayer, providing a fresh start and encouraging future compliance.
Eligibility For Offer in Compromise: The following are the eligibility criteria to apply for the Offer in Compromise:
● You have submitted all required tax returns and fulfilled all estimated payment obligations.
● You are not currently undergoing bankruptcy proceedings.
● You have a legitimate extension for the current year's return
● If you are an employer and have deposited taxes for the previous two quarters.
In 2014, more than 60% of offers were declined for the Offer in Compromise. Those capable of paying through installment plans or alternative methods typically do not qualify for the Offer in Compromise.
The V Tax Professionals Ltd. firm evaluates your eligibility for tax settlement through an Offer in Compromise and presents your case for the best possible outcome with the IRS.
2. Currently Not Collectible
When the IRS puts your tax debt on Currently Not Collectible (CNC) status, it means your tax debt should be removed from active collections. The financial hardship or an inability to pay tax debt qualifies taxpayers for CNC status.
To qualify, you must demonstrate to the IRS that paying your tax debt would create a hardship for you and your family. If approved, you will receive a letter stating your collection case is temporarily closed due to financial inability.
Qualifying For CNC Status
● The IRS will first check your savings to see if they can be used to pay taxes.
● If you lack assets, the IRS will review your income and expenses before assigning you the CNC status to determine whether you qualify for an installment agreement.
● The IRS may request a financial statement (Form 433), proof of monthly income (paystubs, bank deposits), and living expenses (receipts).
With the CNC status, you might not need to pay the IRS until your financial situation improves. Yet, a drawback of the IRS's non-collectible status is its temporary nature, typically lasting up to two years.
Advantages of Currently Not Collectible Status
If you cannot afford to pay owed taxes, filing for CNC status offers the following benefits:
● You have time to pay without IRS collection efforts or wage garnishment.
● If your situation doesn’t improve within ten years, you surpass the collections statute of limitations, and the IRS forgives your debt, including penalties and interest.
Disadvantages of Currently Not Collectible Status
Though CNC status provides temporary relief for paying federal taxes, it has the following disadvantages:
● Interest and penalties are still assessed, raising your owed amount.
● The IRS will apply your future tax returns toward your outstanding balance.
● CNC status isn't permanent. Your financial status is reviewed annually, and the IRS can revoke it if it determines you can pay.
● If you owe over $10,000, the IRS can place a lien on your property until the debt is settled. The experts at V-Tax Services will investigate your savings and assets and guide you throughout the process of getting Currently Not Collectible Status.
3. Installment Agreement
The IRS offers an Installment Agreement for tax repayment, extending up to 72 months for income taxes and covering penalties and interest. During this period, the IRS prohibits levying or garnishing wages.
Direct Debit Installment Agreements
Direct debit installment agreements allow repayment without disclosing income and assets to the IRS. For debts under $25,000, or between $25,000 and $50,000, repayable within 72 months, with minimal paperwork.
Partial Pay Installment Agreements
If you are not meeting the conditions of Direct Debit Installment Agreements, the IRS offers a Partial Pay Installment Agreement (PPIA). You'll submit forms and documents for the IRS to determine your payment. To qualify for this agreement, you have to owe $10,000 or more, have a lack of assets for payment, and be unable to afford standard installments from the IRS.
In a partial payment installment agreement, taxpayers pay their liability monthly until the collection statute expiration date (CSED), usually ten years from the tax assessment date, but reviewed every two years.
Installment Agreement Owed Amount Time Duration Direct Debit Installment Agreements More than $25,000 but less than $50,000 72 months Partial Pay Installment Agreement (PPIA) $10,000 in back taxes or more. CSED is typically ten years, and it is reviewed every two years.
4. Fines Abatement
If a taxpayer has a valid reason for not adhering to tax laws, there is a chance that they could request the waiver of any fines imposed. The professional at V-Tax Services will assist you in fine abatement.
5. Amending tax returns
In numerous instances, taxpayers may discover errors in their previous filings or find that tax authorities have made a mistake on their behalf, resulting in an overpayment of taxes. In such cases, individuals can rectify the situation with the guidance of V-Tax Services' tax experts.
Why Choose US V Tax Professionals Ltd.
V Tax, the best tax advisory firm in Denver, can help you file unfiled tax returns, prevent bank levies, conduct audits, remove tax fines, and support taxpayers in meeting IRS compliance. We offer Tax resolution services throughout Colorado State, especially in Denver, and specialize in multiple IRS debt reduction services.
Our experts keep your interests safe, stop any future actions from tax authorities, and help you grow your financial situation. Contact us and allow us to deal with tax authorities as we know the ins and outs of working with Tax authorities. Our Tax Resolution Services Include:
● Get a free initial consultation
● Represent you in communication with the IRS
● Sort out federal and state taxes, even if you haven't filed
● Ensure you're up-to-date with all tax filings
● Negotiate a manageable solution for your tax debt
● Offer guidance for informed decision-making
● Provide personalized service at fair prices
● Course Tax Preparation
● Stop Enforced Collections
● Remove wage and bank levies
● Business Tax Service
● Individual Tax Service
● Tax Strategies
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