Tax Resolution

 

 Tax resolutions are the various options available to people to solve the present tax problem and prevent future tax problems. Usually, experienced tax attorneys and experts in tax resolution offer services to people to resolve their issues with the KRA and prevent them from having problems with the KRA.

 

Dealing with the KRA is a hassle that can get on your nerve since you need an idea of how to meet its tax-related activity demands. Stay calm with your tax problems. Skim through the various tax resolution options discussed here and select one or several options that match your needs. Below are descriptions of some available tax resolution options.

1. Audit Representation/Audit Defense

It is a service whereby a tax expert or attorney represents a taxpayer (usually an individual or legal entity that is their client) during a state income or KRA tax audit. The Kenyan government and the KRA permit taxpayers to have authorized representatives during tax audits. Authorized representatives are those tax experts permitted to practice before the state and KRA. They are CPAs, attorneys, and enrolled agents.

The primary purpose of tax representatives is to develop strategies for defending their clients ( the taxpayers subjected to audit) in case tax the state or KRA find tax issues with the clients. During a tax audit, a tax representative prepares all documents needed by the state tax officials and KRA on his client's behalf and submits the documents to the relevant institutions. They also attend all meetings with the tax authority and handle communication on their client's behalf.

1. Criminal Tax Defense

Sometimes, the KRA may investigate a person for tax fraud. One should not risk handling such a criminal investigation alone. Hire a criminal tax defence expert to stand for you during the inquiry.

Criminal tax defence experts are the only ones who can help one articulate well that their intentions were not criminal in such cases where intentions matter as much as actions. They guide you through the investigation and tax resolution process to ensure that you avoid facing criminal charges.

1. Tax Planning And Preparation

Prevention is better than cure. Preventing tax problems is better than dealing with them when they occur. One needs to charge an expert to file their tax returns.

Tax experts are not prone to errors or misstatements since they understand tax processes. Additionally, having experts file your returns reduces your liability for tax problems that may occur from those filings — the burden of responsibility for tax problems shifts to your tax experts.

One can also have experts plan for their future tax liabilities. This move helps you prevent the accrual of substantial tax debts. Tax planning can help you know business ventures that you can take that will not saddle you with massive tax debts. It can also help protect your family from heavy tax burdens after death.

1. Offer In Compromise (OIC)

Sometimes people undergo dire financial situations that make it impossible to pay their tax debts. We need more than an extended instalment plan to help us. In such conditions, the KRA inclines towards accepting an OIC, significantly lowering our tax debts.

An OIC is a life-saving tax resolution for many people who need it. Usually, it allows you to pay 20% less of your actual tax debt. Unfortunately, the KRAs acceptance rate of OIC is low because many people commit many errors and commissions when filing for it. Tax experts increase the chances of KRA approving your OIC by helping you demonstrate that complete collection of your tax debt is detrimental to your economic situation.

Conclusion

Several other tax resolution options exist, such as instalment plans, innocent spouse relief, levy discharge, tax lien removal, etc. Find experienced and qualified tax professionals who can help identify and select the best tax resolution for your tax problem.