Tax is the legal obligation everywhere in the world for qualifying citizens. The modern democratic system is based upon the tax system, and tax authorities constantly try to facilitate taxpayers so that they keep contributing to the system. For example, the IRS has made the e-filing so convenient that a taxpayer can submit their tax returns online by following easy steps.
However, there are still some problems related to tax payments and filing that need professional help. We always recommend our readers to find solutions to their taxing problems on their own if their tax payment is not big enough.
Our period articles explaining solutions for complex tax problems are also helpful for taxpayers to find help. But there are some problems that professionals should only handle. If the payment due is more than $10,000 or the service required is comparatively complex. A good way to solve such a problem is by consulting a Tax Settlement Company in Albuquerque, NM.
Here are some of the major services offered by a Tax Settlement Company in Albuquerque, NM
Application for extension in date of tax payment or submission of tax returns:
The IRS, in special circumstances, grants an extension on the date of submission of tax returns or tax payment. If you apply for a regular extension, the IRS will allow it by charging a late fee or interest on the tax amount for the period of delay. But if the taxpayer is facing financial hardship or presents proof of such circumstances which doesn’t allow him to pay a tax of time, the IRS may agree to allow extension without fines etc.
Taxpayers sometimes are in the position that they cannot be entitled to any tax relief, but their financial situation doesn’t allow them to pay off the tax amount at once. They require some sort of installment agreement that allows them to pay tax in easy monthly installment.
Streamlined Installments Agreement:
Suppose the amount of tax debt is so high that the shorter installment agreement doesn’t solve the problem. In that case, the taxpayer then needs the Streamlined Installment Agreement under which they can pay off the tax debt between $25,000 to $50,000 in 72 monthly installments and tax between $50,001 to $100,000 in 84 monthly installments. Still, in this case, the taxpayer needs to agree to the automatic deduction of installment form their bank account or directly from the employer.
Offer in Compromise:
An offer in compromise is a really tricky facility offered by the IRS to those taxpayers who face extreme financial hardship, and paying off the tax in full will eliminate the chances of their economic survival. The option is tricky because the IRS receives a huge number of applications under Offer in Compromise, but only a small fraction of those requests are accepted. In order to get your request accepted, you need to submit your application the right way containing all the ingredients required to get it approved.
Penalty and Interest Abatement:
When you fail to pay taxes on time or fail to file tax returns, the IRS charges interest on the tax amount unpaid and puts penalties for latency. However, the taxpayers have the right to appeal if they think that their latency was due to unavoidable circumstances, and the penalty must be lifted. A good tax settlement company can help you solve this problem.
The above mentioned are only a few of the services offered by a tax settlement company. You get to know the importance of a good tax settlement company when you hire them.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.