IRS Tax Relief – The Harsh Realities

Every year the IRS faces the enormous task of dealing with taxpayers who cannot afford to pay their back taxes. The IRS has the authority to take severe action against delinquent taxpayers.

The average taxpayer is not aware that the IRS counts on most people to attempt to deal with their tax debt problems on their own. Without the representation of a skilled tax attorney, the advantage shifts to the best interest of the IRS.  If you need IRS tax relief, consult with an experienced tax specialist before contacting the IRS.

Tax Relief

The IRS Goal

The IRS collects over 3 trillion tax dollars annually without incident.  However, it is the more than 300 billion dollars in delinquent taxes that take precedence.

In today's economy, the IRS is under pressure from Congress to close the gap between taxes collected and outstanding tax debt.  There have been significant increases in IRS staff and the use of third-party collection agencies.  In addition, serious IRS collection action has increased in the form of bank levies, property liens and wage garnishments. 

IRS Tax Relief Stumbling Blocks

Due to its size the IRS is plagued with bureaucracy, complexity, computer difficulties and human limitations.  It is the largest agency in the Unites States Department of Treasury.  Locating the right department and right person to help resolve your tax problem is a monumental challenge.

  • Bureaucracy - The internal IRS structure is very specialized.  Most IRS employees are unaware of how the IRS operates outside of the realm of their responsibility and are unable to direct you to the right area.  The millions of honest, well-intended letters from taxpayers received by the IRS yearly are often overlooked as IRS employees are more focused on IRS Forms.  
  • Complexity - The US income tax laws are the most complex in the world.  Congress continues to pass tax laws to ensure US citizens follow the rules.  However, even the IRS does not understand all of them.  The tax code, full of unclear provisions and contradictions, challenges a taxpayer or tax professional in how to apply it.
  • Computer Difficulties - The IRS has a powerful computer system linked to 50 state computers, Social Security, city and state tax agencies, motor vehicle departments, public welfare agencies, unemployment offices, and more.  Because the IRS network is so vast, it works slowly delaying notification and updates.  A taxpayer file can become lost - usually due to human error.
  • Human Limitations - Like any business, some employees are stars while others just want to get by.  Too often IRS employees seem focused only on collecting all taxes due without considering impartiality, fairness and the legitimacy of the tax debt. 

Congress has given the IRS considerable power when it comes to the interpretation of tax laws and the use of severe collection actions for the payment of back taxes.  However, this does not give the IRS permission to harass or threaten taxpayers. Taxpayers must understand their rights as well.  An experienced tax attorney can work with the IRS on your behalf to reach a reasonable solution for IRS tax relief.  

IRS Tax Relief Programs

There are several options available for IRS tax relief.   It is not recommended to rely on the IRS to educate you.  The IRS will work to pressure you into a quick agreement for the most amount of money.  The counsel of a tax attorney can ensure the selection of your best tax debt solution.   

A few of the more common IRS programs offered are:

Offer in Compromise - An Offer in Compromise gives the IRS authorization to reduce the amount of the outstanding tax liability, settling for less than the full tax amount due.  A tax attorney can help you prepare for the qualification process.

Installment Agreement - Negotiation with the IRS allows your tax professional to establish an installment agreement for you.  Your tax representative will ensure you receive a payment plan that will fit your financial circumstances.

Filing Back Tax Returns - Negotiations for IRS tax relief cannot begin until the taxpayer is in compliance.  A tax attorney can determine which years need to be submitted and file the late returns for you.  He can then begin IRS negotiations for resolving your tax liability.

Penalty Abatement - IRS acceptance of a penalty abatement request cancels all or part of the accrued penalties and interest, but not the original tax liability.  A tax attorney can help you present reasons for abatement which can support a favorable decision from the IRS.