A recent report revealed that nearly 19 million Americans owe the Internal Revenue Service more than $300 billion. If you’re one of them, consider calling a tax attorney for help with back taxes.
With the proper legal representation, you may put yourself in a better position to pay the IRS what you owe without impacting your finances too much. Here are several ways a lawyer will help when dealing with an overdue tax bill.
Do you believe the IRS is trying to collect more money than you owe? This is the first scenario in which a tax attorney can help with back taxes.
If you don’t feel the agency has calculated an accurate balance for your IRS back taxes, an attorney can issue an appeal and challenge the agency. Although this method doesn’t have a strong track record, it is still worth trying. It could lead to the agency reducing your outstanding balance and making it more manageable.
If you’re searching for a tax attorney to help with back taxes, you probably owe the IRS a significant amount of money. You might not have the funding to pay the agency off completely, but you may have better luck if you put a repayment plan in place and slowly work to eliminate your tax obligations.
A lawyer can help you reach an IRS installment agreement. This will prevent you from facing tax liens and levies and put you on the path to paying back the agency everything you owe over time.
The IRS doesn’t give all taxpayers leeway when settling back taxes. In many instances, the agency will reject the idea of settling tax debts for less than they’re worth.
However, it does make exceptions in certain cases and might agree to accept an offer in compromise (OIC). This will enable you to settle for just a fraction of what you owe.
Before doing this, the agency will consider several factors. They include:
The agency typically advises taxpayers to try all other repayment options before making settlement offers. Still, this method might be worth trying if you have a trusted tax lawyer representing you.
The IRS will not begin garnishing your wages out of nowhere, but it will put wage garnishment on the table if it has no other options. You will receive a Final Notice of Intent to Levy at least 30 days in advance if the agency plans to start garnishing your wages.
If things reach this point, you will often need a tax attorney to help with back taxes. They will help you steer clear of having your wages garnished by laying out your options, including agreeing to a repayment plan or settlement.
In doing so, they will deliver much-needed wage garnishment relief. You won’t have to worry endlessly about how you will survive financially in the coming weeks and months when you find another option for repaying the IRS.
As you can see, a tax attorney will help with back taxes in various ways. They will put your mind at ease by showcasing your repayment options and even handle communicating with the IRS on your behalf. Give Levy & Associates, Inc. a call at 313-447-1704 or complete this form to take advantage of the services our tax professionals provide to those who have fallen behind on paying what they owe at tax time.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.