November 9, 2015

6315757_sOwing money to the Internal Revenue Service can be a stressful experience—regardless of the amount actually owed. After all, settling a tax debt with the IRS involves numerous complex tax laws and legalities that you may not fully understand or even be aware of.

If you are currently dealing with a federal tax debt, it would be most advantageous to hire an attorney to represent you. Federal tax matters are very sensitive and crucial issues, and the smallest mistake in the process could cost you significantly, both in terms of time and money. Hiring an expert in acquiring tax settlements may not only save you and your business from interest, penalties, tax liens, and tax levies, but also from possible criminal actions such as jail time.

Tax codes and laws are complicated matters and change often. An experienced tax attorney is knowledgeable of the ins and outs of tax laws and programs, and can advise you on what needs to be done in specific situations. He or she will have the expertise to thoroughly analyze your situation, and will be able to clearly explain your legal options to you. An attorney should also be expert in state tax laws as well.

When it comes to settling federal tax debts, there are numerous options to consider. For instance, an IRS payment plan or installment agreement may be best for your particular situation, which means paying the IRS a pre-determined amount of money every month until your debt is fully paid. You may possibly also qualify for an offer in compromise, which allows you to settle your debt for an amount lower than what is actually owed. There are also other less common solutions to tax debt that you may qualify for, such as innocent spouse relief and tax bankruptcy.

Based on the unique circumstances of your case, a tax attorney will be able to determine the best tax program for you to use. He or she will be able to help you develop a plan of action and properly implement it. If necessary, a tax attorney can also help negotiate with the IRS on your behalf. Make sure, too, that an attorney is licensed to take matters to the U.S. Tax Court, something a CPA or even a tax resolution specialist is generally not allowed to do so.

Of course, you shouldn’t settle for any attorney who claims to be knowledgeable with debt-related cases. Settling a federal tax debt differs greatly from settling a debt with any other creditor. It is important to take the time to find an attorney with experience in handling tax debt situations that are similar to yours. Inquire about the types of tax debt help offered by a particular lawyer, then decide if you are agreeable to the potential solutions that he or she offers for your tax debt.

Categories: Blog, IRS, Taxpayers' Rights