Taxes are an inevitable part of life in the United States, but managing these obligations is always easy. Tax laws are complex, and many people find themselves at odds with the Internal Revenue Service (IRS) over issues such as nonpayment or late returns.
If you have tax debt, it is crucial that you act as soon as possible. With the help of a skilled tax attorney, you could resolve these obligations without facing additional penalties. Discussing your options with an IRS tax debt resolution lawyer could be more beneficial than trying to handle these issues on your own.
The federal government is inflexible when it comes to collecting its dues. That is why most tax cases are ultimately resolved through some kind of payment plan. While the end result is still paying the full amount owed, the government may agree to withhold any collection efforts as long as taxpayers follow an agreed payment schedule.
These arrangements are not always easy to come by, but the good news is that taxpayers do not have to work them out on their own. One of the major benefits of working with an IRS tax debt resolution attorney is having them negotiate with the government for a reasonable payment plan. This approach not only avoids the need to pay back the full amount in one lump sum, but might also help avoid additional penalties.
One of the most useful tools for dealing with back taxes is an offer in compromise. This is one of the few ways taxpayers could settle their obligations for less than what they owe. The IRS accepts a portion of the total debt in exchange for clearing the entire obligation.
Not everyone qualifies for this approach. There are strict eligibility requirements, and the federal government frequently denies applications for offers in compromise. An attorney could help pursue this option and demonstrate the severity of a person’s financial hardship.
Not every short-term resolution involves paying what is owed. Sometimes, taxpayers simply do not have the means to pay their debts, making the IRS’s collection efforts pointless. In such cases, securing Currently Not Collectible status could be helpful.
Currently Not Collectible status is designed to temporarily pause any IRS attempts to collect delinquent taxes, thereby halting levies, liens, or other tools that the federal government typically uses.
This option is available only to individuals in dire financial circumstances and provides temporary relief. The IRS periodically reviews individuals’ financial situations to determine if Currently Not Collectible status should still apply. An attorney experienced in IRS tax debt resolution could answer questions on when this status may be available.
If you are facing overwhelming tax debt, it is important to know that there are ways to resolve it. You might be able to negotiate with the IRS or even qualify to pay back only a portion of what you owe.
This process can be complex, and attempting to navigate it on your own is not advisable. Reach out to an IRS tax debt resolution lawyer at Price Benowitz as soon as possible to discuss your options.
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