For most people, the IRS is only a concern during tax season. However, if you have underpaid your taxes or made a calculation error, you may be hearing from the IRS or your state or local revenue agency at another time. This can be a stressful experience, especially if you don’t currently have the money to make good on your IRS debt. Fortunately, there are some options available to you.
Tax Filings, Levies, and Penalties
If you owe money on taxes, your first priority should be filing your tax returns. A lot of people are hesitant to make filings when they can’t pay. However, this is a major mistake as it can lead to substantially higher tax penalties. The IRS’s top priority is collecting your taxes, not punishing you for being unable to pay. If you are working towards payment, your situation will be much easier.
One of the biggest threats from the IRS is a tax levy, the seizure of your property to cover taxes. Before a levy happens, you will be contacted several times in writing by the IRS. You can avoid a tax levy by showing financial hardship or by setting up an installment agreement. Failing to respond may result in collections efforts. In short, make sure you address tax notices right away and attempt to come to an agreement with the IRS promptly.
Tax Resolution Services
For most people who owe less than $10,000, it doesn’t make sense to hire an attorney for tax liability. However, if you owe more than this or have a complex situation, you should strongly consider working with a tax attorney.
Working with a tax resolution service can help you to take control of your tax situation and avoid the more severe penalties. Additionally, it can help you to minimize the total amount you end up paying the IRS.
What Can a Tax Resolution Service Help With?
Working with a tax attorney can help you navigate the complexities of tax law to find the best path forward for you.
A tax resolution service can often help you save substantial money by avoiding tax penalties and reducing the amount you pay to the IRS. The sooner you get on a path to settling your IRS debt, the fewer penalties there will be and the less money it will cost you overall. Furthermore, there is a lot to be said for the peace of mind that comes with having a clear path to paying off your taxes.
There are many tax resolution strategies and techniques that can be applied. It takes experience and knowledge of the tax laws to know how to apply them correctly. These are some ways that a tax attorney may be able to help you:
- Audits: During a tax audit, the IRS will look for discrepancies in your incomes and expenses. A tax attorney can help to protect you against red flags and mitigate the subsequent penalties.
- Tax Crimes: Although there are legal ways to reduce your tax liabilities, there is a line that you can’t cross. If you have done this (intentionally or unintentionally), you will need a lawyer to help with your criminal case.
- Tax Liens: If you owe a significant IRS debt, the government may file a lien against you. This will help them to collect money from you. Having a tax attorney can help you to avoid a lien in some cases.
- Offers in Compromise: The IRS might accept an “offer in compromise.” This is an offer to settle a tax debt for less than the face value.
- Penalty Negotiation: Tax penalties primarily exist to motivate people to pay their taxes on time. Therefore, the IRS and other revenue agencies might be willing to abate some penalties. A tax resolution service may be able to reduce the amount of money you owe in penalties.
- Wage Garnishment Assistance: For a lot of people, wage garnishment is one of the most difficult aspects of an IRS debt. If you are being forced to hand over a portion of your wages, you may find managing your finances to be very difficult. A tax attorney may be able to help you negotiate an alternative payment solution.
What Do Tax Resolution Services Cost?
The cost of working with a tax attorney depends significantly on the specifics of your situation. However, no matter your needs, if you owe at least $10,000 in taxes or are struggling to resolve the situation yourself, having effective tax attorney representation is worth every penny.
When you first contact The Law Office of Lance R. Drury, we will collect information about your situation. We will work tirelessly to ensure that your IRS troubles are resolved as quickly and favorably as possible.
What To Expect During a Tax Resolution Process
Every tax situation is unique and needs to be addressed with care and focus. Nonetheless, we apply a similar general framework to every situation, even though the specifics may vary substantially.
- Discuss Your IRS Debt: We will start by learning about your situation. The more candid you are with us, the more we can help you to devise an effective strategy.
- Create a Plan: With that information in mind, we will work quickly to devise a strategy to help you resolve the problem. Our goal will be to help you pay off the debt without putting you in an overly burdensome financial situation. We will also advise you on what the IRS will be realistically willing to accept.
- Liaison With You and the IRS: We will be the go-between for you and the IRS. We can ensure that the IRS has all the information it needs while helping you to understand everything happening in your case.
Schedule Your Tax Resolution Consultation
Contact The Law Office of Lance R. Drury today to learn more about our tax resolution services. We will schedule your consultation to begin taking on your IRS debt or audit situation.
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