Get help finding the Right Tax Lawyer for your case
Occasionally, a taxpayer might owe outstanding back taxes and may be in more debt to the IRS or state tax authorities than he or she can afford. For those experiencing financial difficulties or economic hardships, they may be able to lessen their debt through a tax debt settlement. A tax debt settlement is an agreement with the IRS that would lessen the burden on a taxpayer in serious debt. Depending on the taxpayer's financial situation, the IRS could agree to either accept a reduced amount from the taxpayer than his or her original tax bill, or they might agree to set up a payment plan so the taxpayer can pay the full amount over time. Below are some of the most common tax debt settlement programs.
Tax debt settlements are not for everyone and they are very difficult to attain. Only a small amount of people will qualify. To apply for an Offer in Compromise, there are strict requirements to meet, and many forms and evidence of financial hardship to submit. If a settlement is agreed upon, the reduced debt will still need to be paid within a certain amount of time, whether in a lump sum or installments. All methods of tax debt settlements have their drawbacks and consequences. However, there are also benefits if you do qualify for a tax debt settlement, such as significantly reducing your debt, preventing added fees and interest, and avoiding liens and garnishes. In very rare circumstances, you may even qualify for a deferral of your taxes, in which the IRS determines your debt is "Currently Not Collectible." This would stop the IRS from their collection efforts, at least for a certain period of time.
The IRS is generally adamant about collecting debt that is owed to them. They have the ability to add interest and late fees to one's debt, seize assets, garnish wages, place liens, and even punish a delinquent taxpayer with jail time. Since there are so many negative consequences to not paying your tax debt, it is extremely beneficial to hire a tax debt settlement attorney to help you negotiate a tax debt settlement. An experienced tax attorney will assess your financial situation to best determine which method of tax debt settlement is right for you. They will help you gather all of the necessary documentation you will need to apply for a settlement program and negotiate on your behalf if required. If you feel you need a tax debt settlement, seek the assistance of a qualified tax attorney now.
If you are struggling with a tax debt that you cannot afford, we can help you find a tax lawyer that can help you with tax debt settlements. Contact Attorney Search Network for a tax lawyer referral today.
If you have any questions about the information provided above, contact Attorney Search Network for a free Lawyer Referral to a Tax Lawyer with experience in Tax Debt Settlements. Call us toll free at (800) 215-1190 or fill out our online form for your Tax lawyer referral.