What Tax Resolution Services Does an Enrolled Agent Offer?
With the variety of tax consultants available, you may not be certain what an enrolled agent can do for you, in comparison with a tax attorney or perhaps an accountant. When they don't necessarily will need to have specialized in tax law or accountancy in their training, enrolled agents are licensed through the IRS to assist taxpayers in negotiations with all the organization. All enrolled agents have either passed a 3-part IRS examination or are former IRS employees, and must participate in continuing education every 36 months. Which means they're just as qualified as tax attorneys or CPAs for most tax resolution services. Research tax consultant firms within your geographic area to find an enrolled agent who offers the specific tax help you need.
IRS
IRS Audit Preparation and Representation
An error or suspicious number on your own annual tax return can cause an IRS audit, a time-consuming and frustrating study of your financial records to find out whether you've been honest and accurate in your dealings using the IRS. It's smart to secure the assistance of a tax specialist to assist you ready your records if you receive notice of your impending tax audit. An enrolled agent could also handle your case throughout the audit, negotiating with and presenting evidence for the IRS for your benefit. Many are so thorough in their preparation that you simply don't even have to be present at the audit, which can save you time and stress throughout the IRS auditing process.
Tax Settlement Negotiation
Tax
If you're struggling with a tax debt you aren't able to pay, you can help negotiate a tax settlement with the IRS. First, your tax consultant will examine your financial records and recommend the most effective plan of action. For example, you might be able to repay your tax burden in the event you could break it up during a period of many months, in which case you'd petition for the installment agreement. You might have reached a point where you know, given your present and projected financial status, which you won't ever have the ability to pay for the debt in their entirety, whereby you can demand a proposal in compromise, you have to pay as much as you are able to, as well as the IRS absolves you from the remaining debt. They will know what tax settlements you're actually eligible for and which you're probably to receive. Then he or she can help you gather the required paperwork to plead your case.
Tax Penalty Abatement and Dismissal
The IRS often goes toward extreme measures to accumulate on large or far-overdue tax balances. Quickly after failing to file and pay your taxes punctually, you'll begin accumulating fees and interest. Eventually, the internal revenue service may garnish a percentage of your paycheck to protect your debt, allowing you struggling to pay your regular bills. The Internal Revenue Service can also place a lien or levy on your own assets as security against the debt. An enrolled agent can sort out tax penalty dismissal and abatement. Your agent may also negotiate a tax settlement, such as an installment agreement, in place of the wage garnishment or tax lien.
Every tax firm will differ slightly in the services, so it's better to research beforehand and make the most of any free consultations offered prior to hiring someone to assist you. Also, you should be mindful of what falls outside of one's scope; as an example, while enrolled agents can handle your case with all the IRS, only tax attorneys can fully handle your case in a court of law. Similarly, not all offer accounting services aside from tax resolution. Don't be scared to inquire about questions and take into consideration what sort of help you might need down the road, even while you try to resolve your current tax situation.
