Corporate tax compliance is an important matter that you should regard with seriousness. If you fail to comply, for whatever reason, this could lead to negative consequences, such as hefty penalties and interest charges for your business. You can avoid this by following the regulations set by the Internal Revenue Services (IRS), but sometimes complications may arise in your tax situation. You might forget to file your returns on time, for instance, or the IRS might have reason to believe that the income amount you’re reporting isn’t accurate.
When these complications occur, you will have to go through a process called tax resolution. This will take a considerable amount of time and effort, and you may find yourself looking for a solution that might help. That’s where tax resolution software comes in.
A tax resolution software is a program that can help you resolve your tax dispute. It may seem like an unconventional approach, but it comes with a number of benefits, such as the following:
It’s Cost-Effective
There are two ways you can resolve a tax dispute: hire a tax professional or invest in reliable tax resolution software.
Hiring a tax professional to help you resolve a tax dispute may be expensive. The fee for most tax settlement services can easily run anywhere between USD$3,000 and USD$6,000, depending on several factors, such as the size of the tax bill dispute. For businesses such as partnerships, LLCs, S corporations, and C corporations, the fees for tax resolution services may be much higher. This applies to any business that files Form 941s or 940s.
There are services that might charge you less than USD$2,000, but it would be wise not to be tempted by this price if you come across such companies. Chances are, they might only offer subpar service.
Purchasing a tax resolution software would be a better option, as it would only cost you about USD$100 per month or between USD$500 and USD$700 for annual plans. Some software providers may even allow you to have flexible monthly, quarterly, or yearly subscriptions.
Cutting costs is always a big advantage for businesses, and with your finances possibly in a bad state due to a tax dispute, purchasing tax resolution software could be wiser than hiring a tax professional.
It Helps Minimize Errors
Your business’s accounting department deals with numerous tax transactions, from income calculation to expense computations to tax adjustments. You may have a tax specialist or accountant to handle all this, but as with most processes handled by humans, it could be prone to errors and honest mistakes. If you’re dealing with a tax dispute, even small missteps could lengthen the resolution process and take more of your time and effort.
If you get a tax resolution software, however, you would simply have to ensure that the input is correct, and it will automatically compute for the needed data. This will allow you to minimize or completely eliminate errors.
It Provides Service Even After The Dispute Has Been Resolved
If you hire a tax professional, they’ll work with you for the specific tax dispute case you hired them for, and once it’s resolved, they will no longer be at your service. Should you ever need their help again, you’ll have to pay them for a separate case.
With tax resolution software, that won’t happen. Once you pay for the solution, you can continue using it until your subscription is over. If your subscription is for one year, for instance, you can use it for any tax disputes you may have for that year. Not only is it more cost-effective, but it’s also more convenient than having to pay for different cases at separate times.
It’s Easy To Use
Resolving a tax dispute is a confusing process, and it’s difficult for most to do the job well. However, with tax resolution software, you may find that the process can go more smoothly. Even people with no accounting experience can execute most of the tax and accounting functions of a tax resolution software. And, while there is some tax resolution software out there that is less user-friendly than others, they’re still a lot easier and more convenient to use than having to manually work on tax resolutions, from searching records to filing paperwork.
It Provides Convenient Access To The IRS
The first thing you should do upon being notified of a tax dispute is to contact the IRS so you can find out how you can resolve the problem. Even after that initial contact, you’ll have to work with the IRS throughout the resolution process if you want everything to go smoothly and without delay.
With a feature built into tax resolution software, you can easily reach an IRS worker whenever you need to. This can go a long way in speeding up the process and preventing mistakes or misunderstandings from occurring.
It Provides Resolution Calculations And Analytics
A tax resolution software can help you identify and work toward the best outcome in a given tax dispute scenario. Some software may have features that can provide tax resolution calculations and analytics based on your case, as well as useful discussion guides that may help you when calling the IRS. These features are particularly useful when dealing with complex tax disputes, as it allows you to find the best outcome for your case.
It’s Convenient
With the advent of technology, filing or sending paperwork online has become standard procedure for most government offices, including the IRS. And, with tax resolution software, you can conveniently file and send documents online for faster resolution.
You won’t have to worry about your forms being outdated, as most tax resolution software provides updated tax forms for every situation, whether it’s a business or an individual. This will allow you to be prepared to handle any tax resolution cases that may come your way.Â
In addition, most tax resolution software is adept at handling IRS collections, and they also provide assistance with IRS filing types, such as penalty abatement, levies, liens, and much more.
With all these files you will have to handle, it would save you time and effort to ensure that you have an effective record-keeping system in place. Fortunately, that’s yet another feature that comes with tax resolution software. With it, your record-keeping system is made simpler and more convenient, and you can access these records at any time and from any location.
It Ensures Security
There are several benefits to using modern technologies in your business. However, like all modern systems, they may be prone to hacking attempts and data breaches, which puts your business data at risk. The good news is that reliable tax resolution programs often have strong security protocols in place.
A reputable software can encrypt and store your accounting data securely, minimizing the risk of cyberthreats and data breaches. In addition, it can allow you to set passwords in order to limit the number of people who can access and work on your business’s accounting information, significantly reducing the chances of a data leak.
Conclusion
Resolving a tax dispute may be a difficult feat, but there are ways you can make the process go more smoothly. As you can see from the points mentioned above, a good tax resolution software can offer you a lot of benefits and assist you in the tax resolution process, allowing you to resolve the dispute more quickly and with more ease.
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