Imagine for a moment that you are opening the lid to your mailbox. Unsuspecting of its contents, which would you find to be the worse surprise?

a). An enormous pile of junk mail

or

b). A hefty back-tax bill

Currently, I’m dealing with the fact that I need a bigger mailbox to store the increasing volume of ‘mail’ (mostly ads), and as the pile gets bigger, so does my frustration. Daily, I find myself spending more of my time hunting through clutters of paper, searching for ‘real mail’, as if I’m mining for gold.

But comparing the two options above, I would gladly prefer receiving a ton of junk mail to the delivery of an IRS back-tax bill.

Back-Tax Bill

As a Certified Tax Resolution Specialist (CTRS), I’ve seen the financial strain a tax bill can cause. I’m also aware of the stress a person can suffer caused by the consequences of an unpaid tax bill. If a tax debt is not handled within a specified timeframe, the IRS will almost certainly take action through the seizure of your property (garnishment/levy). That is certainly reason enough to stress-out.

To make matters worse, the strain & stress of a tax issue are compounded even more by the ‘delay’ in resolving it. Many procrastinate handling their IRS issue because they feel that they simply cannot afford to pay a hefty tax bill.

Can’t Pay?

From the IRS’ perspective, your wherewithal to pay your tax bill is mostly determined by a standardized calculation. Factors such as: income, household expenses, geography, family size and transportation costs are primary components of the calculation.

The IRS’ calculation also takes into account the value of your assets & liabilities. In certain situations, the IRS may request that you liquidate an asset (bank accounts, recreational vehicles, homes, etc.) in order to fulfill your tax responsibility.

The end result of the IRS’ evaluation might prove to be daunting. If they determine that you have the means to pay your back-taxes, then you will be expected to do so at the most accelerated rate possible. Depending upon your situation, you might have to adjust your standard of living (cut-back) in order to pay, liquidate your 401k-retirement account, or sell off your precious property.

Tax Resolution

The good news is if you are struggling with a back-tax debt, there are legal options by which you can minimize the financial impact of a back-tax debt.

The bad news is if you don’t have a solid understanding of the IRS manual, your options will be limited.

For this reason, millions of Americans turn their tax troubles over to a Certified Tax Resolution Specialist.

Hiring a good Practitioner (a CTRS is strongly recommended) will provide the following benefits: 

a) You no longer have to deal with the IRS directly. The practitioner will communicate directly with the IRS so that you won’t have to.

b) You stand a better chance of protecting your property. CTRSs have the tools to fight on your behalf, and often times stop a bank levy and/or a paycheck garnishment.

c)    Your chances of reducing your tax-debt significantly improves (see how). CTRSs are experts in minimizing the impact of a back-tax issue.

How to choose a good CTRS?

l: Quality vs Quantity

There are a large amount of practitioners who rush through their service, settling for the quick fix in favor of a higher volume of clients, and more revenue, rather than focusing on doing the best job possible. The vast majority of which are NOT even CTRSs. Can you imagine your dentist cleaning your teeth at a breakneck pace, so that he or she can get as many clients like you in and out of the chair? An experience like that could end up being a bloody mess! Just like your teeth and gums, I feel your tax situation should also be handled with precision and care, because it makes all the difference in the world.

ll: Consumer Reviews

Be sure to do your research before you hire someone. Sites such as www.ripoffreport.com, www.bbb.org, and www.complaintsboard.com are good resources to find out if a CTRS is facing a complaint.

lll: The 3 Essential Traits

There are 3 traits a good practitioner must have in order to represent you successfully:

1. Ability to communicate. If the practitioner speaks in ‘tax-law-lese’ and doesn’t bother to explain the terms he or she uses, you should look for someone else.
2. Availability. Will the CTRS be available for conferences at your convenience, not his or hers? How quickly can you expect emergency phone calls to be returned?
3. Rapport. Is this someone you can get along with? Good chemistry will ensure a better relationship and a more positive result.

Final Thoughts

If you have a back-tax issue, there are usually options available to ease your financial strain. The first step is to arm yourself with as much information before contacting the IRS. Find a CTRS who offers a free consultation to determine your next move. Doing just this much could save you from making a costly mistake you will surely regret.

For more information on tax resolution services, visit: www.streamlinetaxresolution.com

Craig Thomas can be reached at: cthomas@streamlinetaxresolution.com