Navigating Back Taxes: Should You Hire a CPA or a Tax Resolution Specialist?
The Importance of Choosing a Professional
If you're dealing with back taxes, it's important to choose the right professional for the job. Whether it's a CPA or a tax resolution specialist, the key is to find someone with relevant experience and specialization in your specific case. Here’s how to make the right choice.
Choosing the Right Professional for Your Case
It's crucial to hire someone who has extensive experience in dealing with multi-year non-filers and specializes in cases similar to yours. The following guidelines can help you decide:
Specialization in Cases Like Yours: If you're a plumber, look for someone who has handled at least twenty building-related cases annually. Similarly, if you're self-employed, an IT specialist should have dealt with at least twenty such clients. Limited Scope: If the professional only specializes in tax resolution, they might be looking for clients who are in dire situations. This could lead to high fees. For example, one specialist charged a staggering $135,000, while a typical professional might charge around $15,000, with some online companies as low as $5,000. CPA Versatility: CPAs are licensed to handle various types of accounting, not just tax. Ensure that the majority of their clients are tax-related to get accurate and reliable advice. Enrolled Agent: This qualification combines attributes of a tax lawyer and CPA. Enrolled Agents specialize in tax court representation and offer a more affordable option for those requiring specialized services.Contacting the IRS for Help
The IRS can be a valuable resource for dealing with back taxes. They are known for providing helpful tips and assistance, especially for setting up a payment plan. Here’s what you need to do:
Contacting the IRS: Reach out to the IRS to discuss your tax situation. They can provide guidance and offer a payment plan that suits your needs. Setting up an Appointment: Visit your local IRS office. Many offices are open one day per week, making it easier to schedule a meeting. If your office is not open, check their schedules for alternative times.Rules and Regulations in Tax Debt Settlement
Tax debt settlement and tax preparation follow different rules. Make sure the professional you choose is familiar with the specific rules and regulations related to tax debt settlement. This ensures that your case is handled accurately and effectively.
Getting Help with Back Taxes
Dealing with back taxes is often challenging, and professional assistance is usually necessary. Here are some key points to consider:
Tax Resolution Specialist: Ensure the specialist you choose is well-versed in the rules concerning tax debt settlement. Avoid any company that promises to settle for "pennies on the dollar," as this could result in further financial difficulties. CPAs for Tax Resolution: Seek out CPAs who regularly handle tax resolution cases. Their expertise and experience will be invaluable in resolving your back taxes.In conclusion, when dealing with back taxes, it’s essential to choose a professional with the right experience and specialization. Whether you choose a CPA or a tax resolution specialist, ensure they have a proven track record in handling cases similar to yours. Contact the IRS for guidance and always verify the qualifications and experience of the professionals you consider hiring.