Millions of Americans struggle each year to pay their taxes. As a result, they seek tax resolution services to reduce the financial stress of dealing with the IRS. A qualified tax settlement agency can give efficient solutions for overdue taxes, IRS audits, or heavy fines and interest. But what are those solutions?
In this post, you will learn how professionals help you save on IRS penalties and interests in 2025.
Ways Tax Resolution Services Help You Save on IRS Penalties & Interest in 2025
Dealing with IRS penalties and interest can be overwhelming, but expert tax resolution professionals can help reduce your financial burden. Here are six strategies to minimize what you owe in 2025:
1. Minimizing IRS Penalties and Interest
Nonpayment can result in a 5% – 25% penalty of the tax due for each month. If you do not seek expert assistance, you may lose out on possibilities to lessen these fines. Tax professionals understand the IRS system and may negotiate to save you hundreds or thousands of dollars.
They evaluate your whole tax history and manage correspondence with the IRS. They will make sure the back tax payment plan is reasonable. They will provide you with tips on how to keep your documents organized, plan ahead, set up reminders, and maintain your financial health.
2. Overcoming Tax Audits
Every year, many individuals neglect deductions or make mistakes during the audit if they don’t have professional help. At every stage of the procedure, tax experts help you make sure that all required paperwork is in order and that correspondence with the IRS is managed appropriately. With the assistance of tax resolution services, you may decrease or even prevent fines.
For example, if a freelancer incorrectly deducts personal expenses as business costs, the IRS may audit them. A tax professional reviews receipts, adjusts deductions, submits proper documentation, and negotiates with the IRS, potentially reducing penalties and preventing further scrutiny.
3. Preventing Wage Garnishments and Property Seizures
Facing wage garnishments and property seizures can feel like a financial nightmare. In 2023, civil penalties included $44.44 billion for individual and estate income, $8.6 billion for employment, and $4.31 billion for nonreturn penalties.
The challenge is even greater if you’re unsure how to stop these actions. Tax professionals understand the IRS processes and use their knowledge to protect your income and assets. With their help, you avoid losing critical resources while working toward a solution for your debt.
4. Using an Offer in Compromise (OIC) to Settle a Debt
Although it’s difficult to qualify, taxpayers can settle their debt for less than what they owe by using the Offer in Compromise (OIC). In fiscal year 2023, the IRS received 30,163 Offers in Compromise (OIC) petitions and accepted 12,711, for a total of $214.5 million.
Tax resolution services help with an Offer in Compromise (OIC) by evaluating eligibility, preparing Form 656, and submitting financial disclosures like Form 433-A(OIC). They negotiate with the IRS, ensure accurate documentation, and maximize approval chances by demonstrating financial hardship or doubt as to collectability.
5. Creating Installment Contracts
If you are unable to pay your whole tax burden in full, the IRS provides installment agreements to help you break it down into reasonable monthly installments. However, if the agreement isn’t set up correctly, the IRS could charge fines or costs.
Tax resolution services negotiate IRS installment agreements by assessing your finances and selecting the best plan. They complete and submit Form 9465 (Installment Agreement Request) or use the IRS online payment agreement tool. Once the agreement is approved, they help you stay compliant by reminding you of payment deadlines and ensuring that you meet all future tax obligations to prevent defaulting on the agreement.
6. Obtaining Current Not Collectible (CNC) Status
The IRS can temporarily cease collection attempts by granting CNC status if you are experiencing financial difficulty. However, without professional assistance, obtaining CNC accreditation is challenging.
Tax professionals gather and submit essential documents for CNC status, including IRS Forms 433-A or 433-F, proof of income, bank statements, tax returns, monthly expenses, medical bills, and hardship documentation. They negotiate with the IRS, proving that payments would cause undue hardship, ensuring compliance, and preventing future collection actions or levies.
Conclusion
By hiring professional tax resolution services, you join a group of experts who will give your case the consideration and care it needs. They will guide you on how to minimize IRS Penalties and Interest, overcome Tax Audits, and prevent Wage Garnishments and Property Seizures.
They have skills to help you obtain an Offer in Compromise (OIC), Installment Contracts, and Current Not Collectible (CNC) Status. If you’re facing tax issues, don’t wait. Contact JES Partners today to schedule a consultation and start working towards financial relief.