Resolution Options for IRS Back Taxes: What a Tax Attorney Can Do for You

March 29, 2012 by  Filed under: Taxes 

If you’re struggling under a growing back tax debt, consider hiring a tax attorney to help you dig out. With professional help, you can take advantage of a variety of tax resolution strategies.

If you pay your taxes in full and on time each year, you probably have no concept of how quickly tax debt can snowball. But if you miss a payment, whether because you can’t afford it, you fell behind on your paperwork, or you are dealing with other circumstances beyond your control, you’ll soon see how serious the IRS is about collecting what it is owed. If you’re struggling to dig out from under a mountain of back tax debt, a tax attorney can help. He or she can educate you on the array of tax resolution strategies out there and can act as your advocate with the IRS-and in a court of law, if necessary. Get help today to access the tax repayment strategies that are right for you.

Installment Agreements

Sometimes, all you need in order to pay back taxes is time. If you can’t afford a lump sum payment of what you owe, but are pretty sure you can pay your debt off in smaller chunks over a period of months or years, talk to your tax attorney about working out an installment agreement with the IRS. With this tax resolution strategy, you’ll agree to pay a certain amount each month until the debt is paid off. With this practical solution to back taxes, you’ll have peace of mind that if you just stick to the schedule, you’ll eventually break free from your looming debt.

Penalty Abatement

When you miss a payment to the IRS, you don’t just owe the initial sum; the IRS imposes late fines and adds accrued interest, as well. In fact, quite often those hefty fees and interest payments are what make the debt go from manageable to scary so quickly. If your tax attorney can prove conclusively that there were mitigating circumstances causing you to miss the payment deadline-for instance, a death in the family, a disaster at home, or a lengthy illness-the IRS may agree to remove the penalties from your bill. Keep in mind that you will still owe the original tax amount.

Offers in Compromise

If you owe more in back taxes and fines than you’ll be able to pay in a reasonable amount of time, given your current and projected financial state, your tax attorney may be able to negotiate an offer in compromise with the IRS. This means that the IRS will agree to absolve you of a portion of the tax debt in exchange for absolute assurance that you will pay the balance-the idea being that getting something is better than getting nothing at all. Because so much money is at stake, an offer in compromise is difficult to obtain, which is why you need a competent tax attorney by your side.

Other Tax Resolution Options

Are you getting hit with your current or former spouse’s tax burden? Is the IRS garnishing money from your paychecks to cover your tax debt, but you need that money to pay your monthly bills? A tax attorney can help in these and other scenarios, to ensure that you are able to repay what is owed without undue hardship. Don’t feel like you have to tackle the behemoth that is the Internal Revenue Service alone. With a licensed and skilled tax attorney as your advocate, you can find a repayment solution that works.

Penny Jones is a money management guru and a senior Internet marketing strategist with Prospect Genius, a leader in local online advertising.

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