The Ultimate Beginner’s Guide to Tax Resolution

Dealing with tax debt can be a daunting and stressful experience. Whether you’re an individual or a business owner, the complexities of tax laws and regulations can make finding a solution feel like an uphill battle. However, tax resolution, also known as tax relief, offers a way to address these issues and regain financial stability. In this comprehensive beginner’s guide to tax resolution, we’ll explore the process, various strategies, and resources available to help you resolve your tax debts and disputes. What is Tax Resolution? Tax resolution refers to the process of resolving tax debts or disputes with the Internal Revenue Service (IRS) or state tax agencies. This can involve reducing the total amount owed, negotiating a compromise, or establishing a payment plan. Tax resolution can also address tax liens, levies, or wage garnishments, which may have been imposed due to unpaid taxes. The primary goal of tax resolution is to provide relief and peace of mind to taxpayers by addressing their tax issues and allowing them to regain financial stability. How Does Tax Resolution Work? The tax resolution process typically begins with a thorough assessment of your tax situation. A tax professional or tax resolution company will review your financial records, tax returns, and correspondence with the IRS or state tax agency to determine the best course of action for your case. The tax resolution process can involve several different strategies, including: Installment Agreement: An installment agreement is a payment plan that allows you to pay off your tax debt in monthly installments over a specified period. The IRS or state tax agency may agree to an installment agreement if they believe you cannot pay your tax debt in full immediately. Offer in Compromise (OIC): An OIC is a settlement agreement between you and the IRS or state tax agency, allowing you to pay a reduced amount to settle your tax debt. To qualify for an OIC, you must demonstrate that you are unable to pay the full amount due to financial hardship, or that the tax liability is incorrect. Penalty Abatement: If you have a reasonable cause for not paying your taxes on time or failing to file your tax return, you may qualify for penalty abatement. This can significantly reduce or eliminate the penalties associated with your tax debt. Currently Not Collectible (CNC) status: If the IRS or state tax agency determines that collecting your tax debt would cause undue hardship, they may place your account in CNC status. This means they will temporarily halt collection efforts while you work to improve your financial situation. Innocent Spouse Relief: If you find yourself saddled with tax debt due to your spouse’s or former spouse’s actions, you may be eligible for innocent spouse relief. This can relieve you of the responsibility for paying the tax debt, penalties, and interest associated with your spouse’s or former spouse’s actions. The Role of Tax Professionals in Tax Resolution Navigating the intricacies of tax resolution can be challenging, especially when you’re already burdened with tax debt. Tax professionals, such as enrolled agents, certified public accountants (CPAs), and tax attorneys, have extensive knowledge of tax laws and regulations and can guide you through the resolution process. Enrolled agents are federally licensed tax practitioners authorized to represent taxpayers before the IRS. They can assist with tax resolution by negotiating with the IRS, preparing and filing necessary forms, and providing advice on tax-related matters. CPAs are accounting professionals who have passed the Uniform CPA Examination and met specific state licensing requirements. They can provide tax resolution services, including preparing and filing tax returns, analyzing financial records, and offering tax planning advice. Tax attorneys are legal professionals who specialize in tax law. They can represent taxpayers in court and provide legal advice on tax matters. Tax attorneys can help with tax resolution by negotiating with the IRS or state tax agencies, addressing complex tax issues, and handling appeals or litigation. Tax Resolution Companies: Finding the Right Help Several tax resolution companies can help you navigate the complex world of tax relief. These companies employ tax professionals, such as enrolled agents, CPAs, and tax attorneys, with extensive knowledge of tax laws and regulations. Some of the leading tax resolution companies include: Optima Tax Relief Tax Defense Network Community Tax Anthem Tax Services Larson Tax Relief When selecting a tax resolution company, it is crucial to research its reputation, experience, and success rate in resolving tax issues. You should also consider their fees and the types of services they offer. Be cautious of companies that make unrealistic promises or guarantee specific results. Loan Options for Tax Relief If you need financial assistance to resolve your tax debt, several loan options are available. Some common loan options for tax relief include: Personal Loans: Personal loans are unsecured loans that can be used for various purposes, including tax resolution. Borrowers can obtain personal loans from banks, credit unions, or online lenders. Interest rates and repayment terms vary based on your credit score, income, and other factors. Home Equity Loans: Home equity loans are secured loans that use your home as collateral. These loans can be used to pay off tax debt, and they typically have lower interest rates than personal loans. However, you must have sufficient equity in your home to qualify for a home equity loan, and there’s a risk of losing your home if you fail to repay the loan. 401(k) Loans: Some employer-sponsored retirement plans, such as 401(k)s, allow participants to borrow money from their accounts. 401(k) loans can be used for tax resolution, but there are limitations on the amount you can borrow, and the loan must be repaid within a specified period, usually five years. Failing to repay a 401(k) loan on time can result in taxes and penalties. Credit Card Cash Advances: Some credit cards offer cash advances, which may be used to pay off tax debt. However, credit card cash advances typically come with high-interest rates and fees, making them a less desirable option for tax relief. Tax resolution can be a lifeline for taxpayers facing

How to Get a Home Improvement Loan: 5 Steps

If you need money for a property renovation project, consider a home improvement loan. For homeowners who don’t have the finances to pay out-of-pocket, loans provide financial flexibility for home improvement financing. A home loan has multiple repayment plans, terms, conditions, and qualifications. But which types are available, and how do you select the best payment terms for a repair? Continue reading to discover everything you need to know about how to get a home improvement loan, including your options and the ways you can apply. What Is a Home Improvement Loan? A home improvement loan is money homeowners can receive to finance house renovation projects, including property upgrades and repairs. A homeowner pays back the loan amount—plus any fees and accumulated interest—on a fixed schedule. A home improvement loan is a solid option because you can use it to increase your home’s value. What does this mean? Let’s say you decide to install a new deck in your backyard. While the up-front costs can be substantial, this exterior feature could make your property more attractive to prospective buyers once you decide to sell, earning you more money in the long run. What is the average rate of a home improvement loan? The actual cost will depend on several factors, including your: Annual income Credit score Debt-to-income ratio Annual percentage rate (depends on the loan type) The Types of Home Improvement Loans Here are five types of loans you can use to fund renovation projects. Personal Loan A personal loan can be acquired for just about any project, including home renovations. Personal loans work like unsecured lines of credit, which means you don’t need to secure the loan with an asset, like a home or vehicle. Most lenders don’t even consider your home’s value during the approval process. Instead, lenders will assess your credit score and annual income. Generally speaking, you’ll need a minimum credit score of 560 to 660 to acquire a personal loan. Home Equity Loan With a home equity loan, you use your home’s equity value and convert it into a loan for financing a renovation project. How much you borrow depends on the difference between your home’s market value and the mortgage balance. If you’ve determined that your property has a substantial amount of equity, this can be the best option. Home equity loans carry fixed interest rates, making it easier for homeowners to make consistent payments. Repayment terms range anywhere between five to 30 years. Home Equity Line of Credit (HELOC) A HELOC is similar to a home equity loan in that you tap into your property’s equity. However, HELOCs have distribution limits. Your lender will determine a specific loan limit. Another difference is that you’re able to borrow money several times, providing you with the flexibility to address financial needs as they arise. Cash-Out Refinance With cash-out refinancing, you apply for a new mortgage and receive a new loan, which you can use to pay off the old one. You can use whatever cash is left over to fund home improvement projects. Cash-out refinancing typically  offers the lowest interest rates of all home improvement loans. FHA 203 (k) Also known as a rehab loan, an FHA 203 (k) type combines your mortgage and home renovation costs into a single loan. This can be a cost-effective choice to avoid the hassles of applying for separate loans. You can also use your loan to finance materials and labor associated with home improvement. The Federal Housing Administration provides an FHA 203 (k), so these loans come with flexible  qualification terms. How to Get a Home Improvement Loan in 2023 Home improvement loans can become incredibly expensive, so you’ll want to consider your options thoroughly. Let’s walk through the five steps to follow when applying for a home improvement loan. Step 1: Assess Your Financial Situation Examine your finances before applying for a loan. Determine how much of your debt you can allocate toward necessities like rent, food, childcare, credit card payments, and entertainment. The key is to gain a comprehensive understanding of your budget so you can make informed decisions on acquiring a loan that best serves your financial needs. Step 2: Determine Your Renovation Needs Different renovation projects require different materials and labor, so the amount you spend depends on your specific repair needs. Evaluate what needs to be done, the type of contractors you’ll need to hire, and how much it will cost. This will help you decide the size of loan to commit to. Step 3: Determine the Type of Loan Needed Spend time thoroughly looking over the financial benefits and drawbacks of each loan. For example, if your home lacks high equity, you may want to consider a personal loan since your home’s value won’t be taken into account. If you have high equity, choose a home equity loan, since your home’s equity will guarantee the loan, and the amount you pay toward the loan’s principal will rebuild the equity you borrowed against. Finally, if you want to refinance your mortgage while paying off home improvement expenses, go with a cash-out refinancing loan. Step 4: Check Lender Requirements Establish what your lender requires. If your credit score is high, you might qualify for repayment options with low interest rates. Other lenders may focus on employment, home equity, and residency. Step 5: Gather Required Documents Your lender should inform you of the required paperwork you need. Keep in mind that if you’re applying for a loan designated for home renovations, you may be required to provide a contractor agreement. Here are some standard items you should obtain: Government-issued ID Social Security number Income documentation (e.g., pay stubs) Employer contact information Proof of residency Can I Get a Home Improvement Loan with Bad Credit? One question people often ask is:  Can I get a home improvement loan with bad credit? Yes, you can. If you have bad credit, you may still be able to get a loan. However, some lenders charge administration fees to those with poor credit. You’re also likely

What are the Benefits of Financing After School Tutoring Services?

As a parent, you want the best for your children, including their education. In today’s world, it’s more important than ever for children to have a good education to succeed in life. However, providing your children with the best education possible can be costly, especially when it comes to after-school tutoring. Fortunately, there are options available to parents who want to give their children the best possible education without breaking the bank. One such option is financing after school tutoring. Financing has become a popular way to pay for many different expenses, from home renovations to medical bills. However, it’s not always thought of as an option for paying for after-school tutoring. But there are many benefits to using financing to pay for the cost of after-school tutoring, and in this blog post, we’ll discuss just a few of them. Lower Upfront Costs One of the biggest benefits of using financing to pay for after-school tutoring is that it may help lower the upfront costs. Many tutoring programs require payment upfront, which can be difficult for some families to afford. Financing allows families to spread the cost out over time, making it more manageable. For example, let’s say your child needs tutoring for six months. The cost of the tutoring program is $1,200. If you pay for the tutoring program upfront, you will need to come up with $1,200 all at once. However, if you use financing, you can spread the cost out over six months. Assuming an interest rate of 5%, you would pay approximately $202 per month, which is much more manageable than paying $1,200 all at once. Flexible Payment Options Financing also offers flexible payment options, which can be beneficial for families with varying budgets. Depending on the lender, families can choose the length of the loan repayment period and the interest rate. This allows families to choose a plan that works best for their budget and their child’s tutoring needs. For example, some lenders may offer a repayment period of 6 months to 2 years. Additionally, families can choose a fixed or variable interest rate, depending on their preference. By choosing a flexible payment option, families can find a plan that works best for them and their budget. Access to High-Quality Tutors Another benefit of financing is that it allows families to access high-quality tutors who may otherwise be too expensive. High-quality tutors can provide your child with the additional support and guidance they need to succeed in school. However, these tutors may be too expensive for some families to afford. Financing allows families to pay for high-quality tutors over time, making them more affordable. This means that families can provide their children with the best possible education without having to sacrifice quality. Better Long-Term Outcomes Using financing to pay for after-school tutoring can have long-term benefits for your child’s education. By providing your child with additional support and guidance, you can help them to succeed in school and prepare them for their future. This can have a positive impact on their career prospects, as they will have a better chance of getting into a good college or university, which can lead to better job opportunities and higher earning potential. In addition, the skills and knowledge that your child learns from tutoring can stay with them for the rest of their life. These skills can help them to succeed in their academic and professional pursuits and can even benefit them in their personal life. Financing can be an excellent option for parents who want to provide their children with after-school tutoring without breaking the bank. By using financing, parents can lower upfront costs, access high-quality tutors, and choose flexible payment options. Additionally, tutoring can improve your child’s academic performance, which can have long-term benefits for their education and career prospects. If you’re considering financing your child’s after-school tutoring, be sure to research and choose a lender that offers competitive rates and flexible payment options. Additionally, be sure to choose a tutoring program that is tailored to your child’s individual needs and learning style. Investing in your child’s education is one of the best things you can do as a parent. By providing your child with the support and guidance they need to succeed, you’re setting them up for a bright future. Financing can be a great way to make that investment without sacrificing your budget. Follow us on social: Linkedin-in Facebook-f Instagram Twitter

Pet Health on a Budget: Using Financing for Veterinary Costs

As pet owners, we all want the best for our furry friends. We do our best to provide them with a happy and healthy life, but sometimes unexpected expenses can arise. One of the most common unexpected expenses that pet owners face is veterinary costs. Veterinary care can be expensive, and in some cases, difficult to afford. This is where consumer financing for veterinary costs can be a valuable resource for pet owners. Consumer financing is a way to pay for goods and services over time. It allows you to spread the cost of a purchase over a period of months or years, rather than paying for it all at once. Consumer financing can be used for a variety of purposes, including purchasing a car, buying a home, or paying for veterinary care for your pet. There are many different types of consumer financing available, including credit cards, personal loans, and payment plans. Each of these options has its own advantages and disadvantages, and it’s important to understand the differences between them in order to choose the best option for your needs. Credit Cards Credit cards are one of the most common forms of consumer financing. They allow you to make purchases on credit and pay for them over time. Many credit cards offer rewards programs or cashback incentives, which can make them an attractive option for pet owners who need to pay for veterinary care. Personal Loans Personal loans are another option for financing veterinary costs. They can be obtained from banks, credit unions, or online lenders. Personal loans typically have fixed interest rates and fixed repayment periods, which can make them a good option for pet owners who want to know exactly how much they will be paying each month. Payment Plans Payment plans are another form of consumer financing that can be used for veterinary care. Many veterinary clinics offer payment plans that allow pet owners to spread the cost of veterinary care over several months. These plans typically require a down payment and charge interest or fees, but they can be a good option for pet owners who need to pay for veterinary care but can’t afford to do so all at once. Consumer Financing One of the benefits of consumer financing for veterinary care is that it allows pet owners to get the care their pets need without having to worry about the cost. This can be especially important in emergency situations when time is of the essence. If your pet needs urgent veterinary care, consumer financing can allow you to get them the care they need without having to wait until you have the funds to pay for it. Another benefit of consumer financing for veterinary care is that it can help pet owners budget for unexpected expenses. Many pet owners don’t have a lot of money set aside for unexpected veterinary costs, and they may not be able to pay for these expenses all at once. Consumer financing allows pet owners to spread the cost of veterinary care over time, which can make it easier to budget for these expenses. Consumer financing can also be a good option for pet owners who want to provide the best possible care for their pets. Veterinary care can be expensive, and it’s not always covered by pet insurance. If you want to provide your pet with the best possible care, but you can’t afford to pay for it all at once, consumer financing for veterinary costs can be a valuable resource. It’s important to explore all of your options before choosing a financing option. Some veterinary clinics may offer discounts or payment plans that don’t charge interest or fees. You may also be able to negotiate a payment plan with your veterinarian that works for both of you. United Credit strives to keep the content shared on this blog accurate and up to date. You are urged to consult with business, financial, legal, tax and/or other advisors and/or medical providers with respect to any information presented. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial or medical institution. This content is intended for informational purposes only. Want more information on your financing options for veterinary care? You can submit a loan application, or visit our Veterinary & Pet Care Financing page. Follow us on social: Linkedin-in Facebook-f Instagram Twitter