Find An IRS Tax Attorney

If you owe back taxes to the IRS, don’t despair. You are not alone. Many Americans have fallen behind on their tax obligations. Relief is available. An Offer and Compromise may be an option to look into.  An experienced tax attorney can help you with your IRS woes.  It is important to know your options and to find the optimal solution for you to get out of tax debt.

When people get themselves into difficulty with the IRS, they may not just need a tax consultant. They may also need the assistance of a financial lawyer. Prompt action is always advisable.

In the latest published IRS statistics, the IRS reported that the average discount on accepted offers under the OIC plan was 88%, which is equivalent to satisfying the taxpayer’s total indebtedness for just 12 cents on a dollar. However, the same statistical report noted the IRS agreed to less than 20% of the applications submitted.

An IRS tax levy is as devastating as it is swift. For those who are deemed to ignore their tax debts, the IRS has the power to seize all the money from your bank account, garnish your paycheck and even seize property to satisfy the debt. Any notice or indication that the IRS is going to place a levy on your bank account is an urgent situation. The IRS first freezes your account. It then has 21 days to seize your funds indefinitely.

When dealing with the IRS you have rights. The IRS must explain and protect your rights in all your dealings with them.  If you are not sure of your rights or options don’t speak with the IRS directly, hire an experienced tax attorney to assist you. Any information you provide them, could hurt you later on.

Remember, the IRS collects 90% of all dollars paid to the U.S. government. The collection process of the IRS is designed to extract the maximum amount of money for the government in the shortest time possible.

You have the right to be represented by an authorized person, such as an experienced tax attorney, CPA, or an enrolled agent for dealing with the IRS. If you are in a discussion or audit and ask to consult a professional, the IRS must stop and reschedule the discussions.

The IRS must protect your privacy and confidentiality. If they ask for information, you have the right to know why they are asking for the particular information and how it will be used. You need not and should not provide original documents. Copies will suffice.

You have the right to know what steps the IRS will take if you do not provide them with the requested information.

Keep copies of all correspondence. You should use certified mail when corresponding with the IRS. This will give your responses a time and date stamp.

If you cannot pay all of your tax when it is due, you can request an installment payment plan. If you can demonstrate that you acted reasonably and in good faith, or relied upon incorrect advice of an IRS employee, you may be able to compel the IRS to waive penalties. You can also appeal any IRS decision on your tax liability and collection action.

There are five strategies for getting out of IRS tax debt.

1. Offer in Compromise, a program where you can settle your tax debts for less than what you owe.
2. Installment Agreement, a monthly payment plan for paying off your debts to the IRS.
3. Partial payment installment agreement, a long term payment plan to pay off your tax debts at a reduced dollar amount.
4. Not currently collectible, a program where the IRS voluntarily agrees to not collect on the tax debt for a year or so, but can seek to collect in the future if your finances improve.
5. Filing bankruptcy, discharging your tax debts under the rules of Chapter 7 or a Chapter 13 bankruptcy petition.

The statute of limitations for the IRS to file an audit is three years from the time the tax return was filed. The IRS has 10 years to collect a tax once an assessment has been made. For those who do not file a return at all there is no statute of limitations for the IRS to file an audit. However, there is a limitation of six years from the time the return was due that the IRS has to charge the taxpayer with a crime. If you omit, for any reason, more than 25% of your gross income from your return, the statute of limitations for audit is extended to six years.One of the greatest problems of divorced couples arises when tax returns that were filed jointly are audited after the divorce. In many cases, one of the spouses has no idea of what claims were made in the filing and has no viable defense against the IRS seeking to collect tax from both parties. In such instances, the taxpayer may assert the “innocent spouse defense” by contacting the Taxpayer’s Advocate at their regional IRS office.

The Taxpayers Advocate Office can be used to intervene any time an IRS action is causing or about to cause severe economic hardship. The TA has the authority to lift wage and bank levies and establish installment agreements, which stop enforced collection action.

You have the right to appeal any decision by a tax auditor and the right to appeal any notice of liens or levies. A tax attorney can prepare your appeal to submit to the IRS.

If you can’t pay the full amount due on your federal return, it is possible to work out an installment payment plan with the IRS. If you owe $10,000 or less, you may be eligible for a guaranteed installment plan agreement if you will be able to pay the entire amount you owe within three years.

If you owe $25,000 or less, you may be able to qualify for what the IRS calls a streamlined installment plan, whereby you pay the entire amount within five years. If you owe more than $25,000, you may still be able to negotiate an installment plan after you provide extensive financial records to establish that you have acted in good faith.

The positive side of getting the IRS to agree to installment payments is that it stops the IRS from seizing your bank accounts, salary and property. The downside of paying your tax debt over time is that the interest continues to add up while you are paying, which means you are paying more than if you had paid the debt right away.