Do not feel overwhelmed if you owe back taxes to the Internal Revenue Service or a state taxing authority. The $300 billion plus federal tax gap is evidence that millions of people are experiencing tax problems. Do not expect tax problems to go away anytime soon. In 2009 our nation finds itself in the biggest economic crisis in modern history. Financial institutions are failing in record numbers. A credit crunch continues to loom, and the housing market continues to struggle amid global financial concerns. It is only natural that the tax gap will continue to increase as million of taxpayers face unemployment, reductions in pay, and related cash-flow problems. Small business owners and self-employed individuals are also facing increased financial pressures. Do not wait on a federal bailout to get you out of debt. A tax resolution plan should be your own individual bailout plan.
There are a variety of tax resolution options available depending on the individual circumstances surrounding each taxpayer’s financial situation. In addition, there is a growing body of financial professionals (CPA’s, Enrolled Agents, attorneys, etc.) that specialize in helping their clients overcome federal and state tax liabilities. Whatever tax resolution option is right for your financial situation, you must take action in order to obtain a financial solution to tax problems.
The Tax Resolution and Financial Freedom book provides a step by step explanation of how to resolve tax problems and get your financial life organized. Many tax resolution alternatives exist for taxpayers that owe the IRS. The ideal solution varies from person to person. The most common solutions include the following:
· Paying the debt in full using existing resources (selling assets, obtaining low-interest loans, etc.)
· Establishing an Installment Agreement (payment plan) to pay off the debt over time
· Requesting an Offer in Compromise (resolving the tax debt for less than the amount owed)
· Being placed in Currently not Collectible Status (financial hardship cases)
· Filing for Bankruptcy
A tax resolution plan is needed to help make sure that every individual with tax debt chooses the best alternative for his or her unique financial situation. Tax resolution plans use the basic financial planning process to take control of tax and financial problems. The ultimate goal is to achieve tax resolution and financial freedom. In order to identify the best “solution” you need to follow a financial life plan that focuses on tax “resolution”.
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