10 Vital Steps To Help Prepare for Tax Resolution

Resolve Tax has compiled some helpful steps that a delinquent taxpayer can do to help with their tax resolution. If you would like to discuss your tax issue, you may contact Resolve Tax at 800-721-3890, Option 1, and request a free financial consultation. In the meantime, making the following financial moves is encouraged:

  1. File all past tax returns. If you have unfiled returns, the IRS will require that they be filed prior to considering any tax negotiations whatsoever. If you need tax preparation assistance, we can prepare returns regardless of the state you live in and we beat competitor’s prices.
  2. If you are a wage earner (W2) you need to correct your tax withholdings so you are having the proper amount of federal taxes deducted from your paychecks. The IRS has updated the W4 form that you complete with your current employer as of January 2020. Please consult with your employer on the completion of the W4 or contact Resolve Tax.
  3. If you are 1099 self-employed or an independent contractor you should be paying your current estimated tax payments to the IRS. Estimated tax payments are made quarterly and are usually calculated from your prior years return. When your current year return is prepared the tax preparer should provide you with 4 quarterly voucher slips that will show the amount you need to pay, where you need to mail, and the due date. If you have not been making quarterly estimated tax payments we recommend that you determine how much you should be paying and send payments monthly rather than quarterly. Essentially, it is recommend that you take the quarterly voucher slip and divide by 3 and send that amount in monthly. You may include a copy of the quarterly voucher slip with the monthly payments. Your intention of becoming complaint will become more apparent with you making monthly estimated tax payments and will only help in the negotiation of a tax resolution.
  4. Attempt to keep your tax balance due under $100,000. Once you owe over $100,000 your IRS file is more likely to be transferred to the field and a revenue officer assigned. Revenue Officers are assigned locally and are much more aggressive on collecting against you for the back taxes you owe. Most delinquent taxpayers are assigned to the automated collection system which takes longer and is not as scrutinizing as a revenue officer. Revenue officers have a limited amount of cases assigned to them, live in your locality, and have access to an arsenal of financial information and may subpoena 3rd parties to gain information about you. Therefore the avoidance of a revenue officer should be priority one. Please note that you do not need to owe over $100,000 to get assigned to a revenue officer.
  5. Limit the use your bank account. If you operate out of a bank account and you are listed as an account holder on the signature card and you owe IRS back taxes, they have the potential to levy your account. Therefore it may be best to limit the funds you keep in your bank account or simply cash your checks rather than deposit them. The IRS will not give you prior notice to issuing a bank levy and when it hits all funds in your account will be frozen. It is very rare that the IRS will release back to you any funds seized by the bank levy so it would be in your interest to minimize this from occurring. Additionally, most banks charge a bank levy implementation fee which will make your account go negative as it is on top of the levied funds. If you want professional help, we can help protect your assets once we are retained. If you would like to discuss your back tax issue give us a call at 800-721-3890, Option 1.
  6. If you operate out of a bank account limit your deposits to your paychecks only. Any other deposits will be scrutinized by the IRS. Additionally, you should not be transferring funds to or from other bank accounts. The IRS tracks all cash transactions of $10,000 or more so it is advisable to keep any bank transactions below this amount.
  7. Do not comingle your money with someone who does not owe IRS taxes. Doing so could jeopardize them and cause confusion when your tax settlement is being reviewed. If your name is on another person’s bank signature card their account could be seized for your back tax debt debt.
  8. Consider being an account signer or power of attorney on a bank account rather than an owner. Some banks provide this option. As an account signer you may perform all transactions on the account as if you were the owner except opening and closing the account. However, since your social security number is not attached to the account as an owner it is immune from IRS levy for back taxes you owe.
  9. Start keeping receipts and or all records involving your financials. It is better to have too much documentation then not enough. Regardless of the tax resolution, the IRS will most likely require some documentation so having more would be better than less as it could affect the outcome.
  10. Attempt to keep your housing and utilities bills in your name only. We recommend that if you lease or rent that the agreement have your name as the sole renter if possible. We also recommend that you put as many utility bills in your sole name as possible as this will help in the negotiations of your tax settlement. It is also advisable that you attempt to show that these expenses are being paid from your income. It is recommended to have your vehicle solely in your name also.

Altering your financials now will help regardless of the tax resolution you are seeking. It is never too late to prepare and taking the above steps is a step in the right direction. Due to the complexity of IRS tax resolution programs it is always advised to seek help from an experienced tax company. Resolve Tax meets the criteria. We have been operating since 2005 and have tax practitioners and other seasoned tax professionals whose expertise is negotiating tax settlements. We have negotiated many Offers with the IRS and know what they can and cannot request and we take great pride in providing only that which is required by law. We know how to prepare, negotiate, and resolve your tax issue. We encourage you to call now for a free phone consultation at 800-721-3890 or contact us at https://www.resolvetax.com/contact/ and complete our online form and we will get back to you.


Resolve Tax Team