Common Solutions to Common Tax Problems

Common Tax Problems

Tax tax problems come in different forms. There are sales tax, state tax, and IRS tax problems that businesses and individual taxpayers face. Failure to file or pay taxes on time and in full, as well as any inconsistencies in the information provided can attract a range of tax related problems including tax audits. Whenever you receive a notice from the tax authorities for any issue, it is important to respond as soon as possible. You can also hire an IRS attorney that could help with any tax issues and increase your chances of getting resolutions such as IRS debt relief. Here are some common ways to prevent or resolve common tax related problems.

Make Full Payments

One of the best ways to avoid tax-related problems is to pay any due and outstanding taxes in full. It remains important to get the bill checked by a professional if you receive a notice as there are sometimes inaccuracies. Set a reminder if you usually find yourself missing important deadlines.

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Ask for FTA Waiver

First Time Penalty Abatement Waiver or FTA is a way of rewarding taxpayers who have paid all their tax dues and have failed to pay their tax dues for the first time. If you have a clean tax compliance history, you can file for a waiver on failure-to-file, failure-to-pay, and failure-to-deposit penalties. To apply for FTA, you need to file all outstanding returns, clear all your tax dues, and must not have any dues for preceding three years. Once you meet this criteria, you become eligible for an FTA waiver from the IRS. FTA does not apply to penalties such as accuracy related penalties.

Related Blog: Unable to Pay Federal Tax Debts? Request an Installment Agreement

Ask for Offer In compromise

Tax authorities generally accept an Offer in Compromise if they assess that the amount offered to settle your IRS debt is more than or equal to the Reasonable Collection Potential or RCP. Your RCP is calculated using financial analysis tools such as 433-A for individuals and 433-B for businesses. Remember that if you have filed for bankruptcy, you cannot be considered for an Offer In Compromise.

Go for an Installment Agreement

Another common way to solve common tax problems is to pay outstanding taxes through an IRS tax installment agreement. Before applying for an agreement, it is recommended to consult a professional tax attorney who can work on getting an agreement that is reasonable for you. Generally the tax authorities request a large monthly payment, which can introduce untold problems in your finances in the absence of professional help from a seasoned tax attorney.

End Note

It is essential to comply with tax laws in order to get the desired outcome such as IRS debt relief. The Law Offices of Nick Nemeth, PLLC, has some of the most experienced Dellas tax attorneys who specialize in helping taxpayers get favorable outcomes to a range of IRS tax problems. To speak with one of our Dallas tax attorneys, call (972) 426-2553, or email You can also fill out our contact form.

Common Solutions to Common Tax Problems
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