IRS tax debt is a problem that plagues many Americans each year. While the results may be similar from case to case, an experienced taxation attorney will know that the causes can vary widely. Whether the circumstances leading to debt are in a taxpayer’s control or not, the solution is the same. Anyone owing unpaid back taxes to the IRS should work with a tax expert to find the most appropriate program for resolution and understand the eligibility requirements for each program. If you’re in debt and need help discovering your next step, contact a tax relief lawyer.
To gain control of a debt situation, the first step is learning the available options and what it takes to be eligible for them. Taxation attorneys will use information such as the amount of debt and the Reasonable Collection Potential of their client to determine the course that should be pursued. The IRS has created programs that account for debt at different thresholds. Each settlement option has a different maximum term length. Debt resolution can occur as a one-time payment or a series of monthly installments. For a taxpayer under financial hardship, an income tax lawyer can negotiate a settlement that removes their liability.
If a debt is not properly settled, the IRS can start collection activities. Tax settlement lawyers provide their clients with the tools needed to halt debt collection. At the start the IRS will send a taxpayer notice of intent to collect. At this point, paying a debt in full will bring an individual’s account current with the IRS. The only penalty that will have occurred is any amount of fees or interest assessed from late payments and missed filing deadlines. Tax experts offer services of penalty abatement if the fees have been wrongly placed on their account. If nonpayment of back taxes continues, the IRS can pursue lien and levy actions to regain the money owed to them. Income tax lawyers can advise clients on how to avoid tax liens and levies and what to do when faced with them.
While debt collection is a sore topic and causes stress for many people, it only worsens with a lack of resolution. Helping people recover from tax debt is a main focus for tax relief lawyers. They are offering free consultations and can help you fill out the right paperwork and find the best solution to your tax debt problems. Getting out of debt is an attainable goal and you can get there with help from the right experts. Start off in the right direction with your IRS debt and hire a tax settlement lawyer today!