Taxes, whether state or federal, can be difficult to handle properly. Hiring an income tax attorney helps taxpayers ensure that any personal or business returns are accompanied by the proper files. Improper filing is one of several ways in which tax debt can be incurred. The IRS charges fees and interest on any missed deadlines. Regardless of how the debt occurs, the IRS will follow up with collection efforts if action is not taken to settle the debt. Taxpayers finding themselves in this situation should call tax relief attorneys for advice on how to proceed.
Debt collection efforts from the IRS can cause strain on a taxpayer’s finances. A tax settlement attorney has the knowledge available to help individuals with their specific debt scenario and can assist them in finding a way out. The most common solution is a simple debt repayment. If a taxpayer is aware of their issues early enough, they can avoid serious collection action by receiving penalty abatement. Income tax attorneys can help show the IRS if the cause of a missed deadline or other issue was out of the taxpayer’s control and whether abatement is possible.
If penalties are not removed and debt becomes unmanageable, a taxpayer can contact an expert such as an attorney tax relief for what their repayment options are. The IRS offers three common repayment programs: Offer-In-Compromise, Currently-Non-Collectible (CNC) status, and Installment Agreements (IA’s). The hardest to qualify for is the Offer-In-Compromise, in which the IRS lowers the total amount due in exchange for short term monthly payments equal to what the taxpayer can afford. CNC status is awarded to taxpayers who have no ability to pay due to an income that is lower than their monthly expenses. IA’s are used when the best program is one in which the taxpayer pays their balance over a 60 month period, with considerations taken for other financial obligations. Tax settlement attorneys are equipped to recommend the best program and help with the enrollment process.
Regardless of the personal financial situation, taxpayers are responsible for paying taxes and staying compliant with the IRS. If you are in debt to the IRS, you should contact an attorney tax settlement to find out the best program for debt resolution. Tax professionals are capable of handling all kinds of IRS related issues and are offering free consultations if you contact them with questions. Call a tax relief attorney today to get the answers you want and the help you need.