Why Fixing Your Income Tax Problem On Your Own Is A Bad Idea
If you’re experiencing income tax issues, you are not alone. Every year, thousands of American citizens come across some kind of tax problems with the IRS. This may either be the result of financial problems, miscalculations, or delays in filing returns. Nonetheless, if the IRS (Internal Revenue Service) brings to your notice an issue with your tax records, you must have it solved as soon as possible.
However, rectifying issues with the IRS can be burdensome if you’re unaware of what you’re doing and what is required of you. With the help of a Tax Resolution Specialist, you can gain insights into IRS regulations and strategized solutions for your tax situation. Unfortunately, many individuals avoid approaching professionals as they believe it will add to their expenses. But in reality, it’s just the opposite. Without professional assistance, you’re more likely to get into an irreversible mess that costs you more than anticipated. To show you exactly what could go wrong, Ultimate Tax Relief has explained why fixing your income tax problems on your own is a bad idea.
1. You may overpay the IRS
When handling tax issues brought up by the IRS or the state taxing authority, you must be careful with them. This is mainly because they may require you to pay penalties or rectify the tax returns that you owe. If you are not careful, you will end up paying more than required to the tax authorities.
2. You may be charged high penalties
If you do not understand what the IRS requires or in case you exceed the deadline given to you to take action, you may be charged with large penalties. Similarly, if you send incorrect calculations again, you could be accused of fraud. For example, late filing penalties can increase up to 25% of the amount owed while late filing due to fraud can be at an alarming penalty rate of up to 75% of the tax owed.
Do things right - Hire a professional!
Attempting to take on the IRS yourself is like performing brain surgery when your skillset is carpentry. If you do not have the specialized knowledge to fix your tax problem, you can end up owing more money to the government, thus putting yourself into deeper debt.
Tax resolution specialists know the ins and out of the IRS system, and solve your problems with ease. They can help assess any back tax and your tax situation as a whole. Based on what they find, they will recommend the best way to resolve your tax problems. In some circumstances, they may suggest solutions like structured installment agreement, offer in compromise, currently not collectible, penalty abatement, or even bankruptcy.
Just remember, when looking for a tax resolution specialist, verify if they are a Certified Public Accountant, an Attorney, or an Enrolled Agent specializing in tax resolution. Next, check their reviews to determine the quality of their services. If you see good feedback, your choice should be easy.
If you’re wondering about the cost of hiring a tax expert, avoid going with the cheapest services as they may not be as reliable as expected. The fees of tax specialists vary depending on the extent and complexity of your tax problem. If you are uncertain about what you can afford, ask a few specialists for quotes to make your decision accordingly.
For a reliable tax resolution specialist in New York City, reach out to Ultimate Tax Relief. We were founded by Bernell C. Ward, who has extensive experience in working with individuals and businesses. His expertise covers accounting matters, bookkeeping, tax preparation, and other tax-related concerns. As an expert, when it comes to tax problems, he can easily guide you towards a solution that works well for you. That way, you stress less and obtain relief from your trouble quickly.