As soon as the IRS finds out that there are some discrepancies with tax payments like underreported tax income, misclassification of employees, inaccuracies in tax payments, it would start off with the collection process. It would first send across a notice to the concerned individual along with a response form. You can respond in two ways. One is to accept that there are some discrepancies and go on with the process by repaying the amount that is pending. Next one is to deny what is being put forth and sending a response along with proper evidence.
Settle amicably
The IRS would look to settle the whole issue more amicably by way of making settlements. If the individual or the company does not send response and does not take proper course then the IRS takes the issue seriously and would deal the whole issue differently. Hence, it is absolutely necessary to give a response as soon as possible. If you are having some tax problem, the IRS would provide options for taxpayers to resolve their debt. There are so many options to help reduce the amount, and in some cases eliminate, tax arrears, ranging from filing or making corrections to tax return to arrangements like abatement of penalty, instalment agreements nor offers that are in compromise.
Know to deal
By making an offer in compromise one can settle your tax debt for less than the full amount you owe. It comes across as the best legitimate option if you are not able to pay your full tax liability or doing so brings financial burdens on your part. If you are finding difficult to handle the situation then it would serve best for you to hire a professional tax attorney who will be able to better guide you through the whole process. Click here to know more.
