IRS Tax Debt

As a taxpayer living in the USA, we have a legal responsibility to file and pay annual income taxes. The IRS has over 140 tax codes and guidelines. The interpretation of these tax laws is complicated and opens the door for misunderstanding.  If you are in financial difficulty, the IRS and your Federal income taxes will take precedence.  It is illegal to ignore filing an income tax return and is viewed as a misdemeanor by the IRS.  

Thousands of taxpayers have experienced the stress of owing a tax debt they cannot pay.  It is how you handle the situation that will determine your outcome. If you need help with an IRS tax debt, the time to contact a tax attorney is now, before the IRS takes adverse action against you.

Tax Relief

IRS Tax Debt Relief

IRS tax debt relief comes in may forms. There are a variety of tax debt relief programs from which to choose.  But which one?  And how do you know if you can qualify?

Working with a tax professional increases your chances of a viable outcome. After making a careful and accurate review of your finances, your tax attorney will discuss several options with you.  Negotiating repayment of an IRS tax debt on your own may cause you to miss your best opportunity:

  • You may be intimidated into accepting an installment plan you cannot afford.
  • You may be unable to negotiate a penalty abatement.
  • You may unknowingly provide the IRS with information that is detrimental to your case.
  • You may miss a chance to qualify for an Offer in Compromise (debt reduction).  

IRS Tax Relief Plans

Your tax attorney can point you in the right direction and get you started back on the path to financial recovery. The most common IRS tax debt problems are the failure to file tax returns, the inability to pay in full, the inability to pay at all, and the claim against personal liability. 

  • Failure to File Tax Returns - A tax specialist can file your returns for you and bring you into compliance with tax law.  You must be in compliance before you can negotiate any IRS resolution.
  • Inability to Pay in Full - A tax attorney can negotiate an affordable IRS Installment Agreement. This is an ideal way to resolve income tax debt and recover a good credit rating.  IRS payment plans are negotiable and are a great option for those taxpayers who do not qualify for an Offer In Compromise.  
  • Inability to Pay at All - If you are unable to pay off the entire balance of your tax debt, you may qualify for an Offer In Compromise (OIC).  A knowledgeable tax attorney can help you with the difficult qualification process.  An OIC allows you to pay off a reduced tax debt over a period of five years. 
  • Disputing Liability - Questioning the liability for a tax debt can often extend into months and years.  Most liability disputes involve spouses or former spouses.  Your tax specialist can help you qualify for Innocent Spouse Relief removing you from the liability to pay a tax debt.  Or, if the IRS has made an error in assessing taxes, a tax attorney is experienced in finding the right IRS department and person to obtain quick resolution.

Delaying Action Is Costly

A qualified tax attorney can help lessen your financial exposure to:

  • Escalating penalties and fines added to the original tax debt
  • Compounding interest increasing the tax debt daily
  • Wage Garnishment - funds taken from your paycheck
  • Bank Levy - funds frozen and unavailable for use
  • Tax Lien - property attached as security for a tax debt
  • Seizure of Assets - houses, cars, etc. seized and sold to lower tax debt
  • Criminal Action - actions viewed by the IRS as criminal, ranging from a misdemeanor to fraud

The primary interest of the IRS is to collect the entire amount due along with interest, penalties and fines. With the proper representation, you can successfully and fairly resolve your IRS tax debt.