Thursday, November 5, 2020
1. Why should you hire a tax law attorney? First, facing the IRS means that you either haven't hired an accountant, or your current accountant has done a pretty bad job of managing your finances. This means that it is already too late to hire another CPA to fix your problem. The IRS has already done the math, so you will be wasting resources if you hire another person to do it all over again. You need to focus on areas that you still need to prepare for. What you need is a competent tax law attorney to help you with the legalities that you will be facing.
3. A tax law attorney can also help you by giving you truly complete advice. This is because they are experienced in matters involving tax laws. A tax law attorney will be able to give you advice on different legal measures that you can take to solve your Tax problems. A CPA can only help you in terms of fixing your budget or computing your taxes but can offer very little help regarding how to fix your tax problems.
4. The IRS can use different techniques to intimidate you into paying the amount that they will insist you owe. People who are unfamiliar with the methods of the IRS often pay this amount without taking the time to question why. A good tax law attorney can help you get over your fear of the IRS and meet them on the legal battleground. A good tax attorney will have the resources necessary to help you overcome any intimidation tactics that the IRS may use to force you to pay.
5. The best reason that you can have to hire a tax law attorney is the fact that taxes are based on laws. This means that taxes are the natural stomping grounds of tax attorneys. They know their ways around it and they know how to survive it. A tax law attorney, on the other hand, can show you a lot of things you can do to legally get the IRS off your back. A good tax law attorney can help you by giving you various tips on how to compromise with the IRS and end up paying much less than what you might think is your due.
Whether or not you can afford to pay your tax liability, you are better off filing your tax returns timely.
If you fail to file your Federal income tax return in a timely manner, you will be charged an additional 5% of the tax due per month for the first 5 months after the original due date the of the tax return.
This equates to paying an additional 25% above the original tax liability due plus other significant penalties and interest on both the tax owed and penalties.You may ask “Why should I file if I cannot afford to pay?” Aside from the additional liability that continues to accrue by not having filed all of your returns, you are not in compliance.
By definition, compliance requires that all tax returns, current and past be filed, that the taxpayer has paid current tax estimates and/or liabilities and that the taxpayer will continue to do so going forward. The IRS and most State taxing agencies will not negotiate with a taxpayer who is not in compliance. It is easier to pay someone to prepare and file a tax return each year rather than paying someone a much larger sum of money to prepare tax returns for multiple years all at one time.
In the latter, the taxpayer is usually scrambling to gather information that is now several years old and to add additional stress, many taxpayers are required to prepare and file returns while their funds which were most likely limited to begin with, are now tied up due to a bank levy or wage garnishment. If you missed the boat to file your tax returns timely, file them as soon as possible. Contact the Taxing Agency (before they contact you) Whether you owe the IRS or your local State taxing agency, it makes sense to make contact sooner than later. Aside from the stress of not knowing what they expect from you, you face the threat of collection activity. Once a taxpayer becomes delinquent, they will receive several notices increasing in degree of seriousness. If a taxpayer continues to ignore these series of notices, they will surely encounter one of two types of collection.
– a credit card statement and bank statement is not enough to prove an IRS tax deduction. If you buy fuel at a gas station the IRS does not know if you purchase food, beer or fuel without the receipt. The will prove that you purchased fuel. Therefore your . The IRS requires the credit card statement or bank statement and the Do you owe $10,000 or more in back tax debt?
Do you owe $10,000 or more in #taxdebt to the #irs? Dealing with the IRS on your own can be a horrible experience, and means that you haven't hired an tax resolution expert.
Nonetheless, they are considered a great help in advising their clients on how to lessen their tax liabilities.
Tax debt advisers also provide valuable tax advice on what tax exemptions you qualify for, along with giving the demarcation line between legal and illegal ways of reducing or avoiding taxes.
A tax attorney guides a client to avoid future tax problems. They also defend clients in cases of criminal and civil suits regarding tax troubles. When a taxpayer has trouble with the state department of revenue or Internal Revenue Service, they may try to remedy it themselves or hire the services of a tax debt specialist.
If you choose to take on this huge task and do-it-yourself, you may fail to satisfy the tax debt or pay more than you had to pay.
Avoid any further tax trouble, additional penalties, interest or late fees and take the first step in resolving your federal tax or state tax problems today.provide assistance to resolve your tax debt, delinquent tax problems, tax disputes and IRS back taxes.
Our team of tax consultants, tax attorneys, enrolled agents, and CPAs are considered the most effective tax resolution company in America. team is exceptional at dealing with the IRS, reducing tax debt, eliminating tax disputes, negotiating IRS payments.
Installment Agreements, Offer in Compromise, Penalty Abatement, IRS Tax Payment Plans, and Audit Representation to name a few.
We can help protect your income, negotiate a reasonable IRS payment plan or settlement and provide you freedom from the IRS.
a credit card statement and bank statement is not enough to prove an IRS tax deduction. If you buy fuel at a gas station the IRS does not know if you purchase food, beer or fuel without the receipt. The will prove that you purchased fuel. Therefore your . The IRS requires the credit card statement or bank statement and the
In some cases, you can reach a tax resolution and settle for far less than the amount you owe. This is known as an Offer in Compromise.
An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were accepted.
If you are the having tax disputes with the IRS, tax professionals like experienced Enrolled Agents (EAs), Certified Public Accountant (CPAs), and tax attorneys can help you reach a tax resolution. Tax resolution encompasses a wide variety of settlements which includes IRS audits, Federal Tax Liens (IRS Liens), bank levies or wage garnishments, IRS penalty abatement, innocent spouse defense, bankruptcy discharge analysis, Offer in Compromise, un-filed or delinquent tax returns, and IRS collection statute of limitation analysis.
Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed returns, missing records, threat of levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise or want to be declared Currently Not Collectible.
For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The Internal Revenue Service can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay.
Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed. While currently in not collectible status, the ten-year statute of limitations on tax debt collection remains in force. If the IRS cannot collect its tax dues within the ten-year statutory period, the tax debt expires.
The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts and try to reach a tax resolution or close cases in all these areas.
Tax resolution X-perts helps businesses and individuals prepare unfilled tax returns, settle un-paid taxes for a fraction of the tax debt.
Luckily, there are several ways other than bankruptcy to clear you tax debt without ruining your credit. If you can afford it, the easiest way is to set up an installment plan. Make sure that you have a clear idea of how much you can afford to pay each month. Setting up an installment plan only takes about two hours. Basically, you tell them what amount you can afford to pay each month, and they accept monthly payments until the debt is paid. This is the simplest plan, but it is only available to those who owe less than $10,000, and can pay off the debt fully within three years.
Partial Payment Plans: If you don't meet the criteria for an installment plan, you can try a new option, the partial payment plan. This is a rather complicated plan, requiring numerous forms and lots of documentation, so you probably want a tax professional to help you. Under a partial payment plan, you agree to pay a certain monthly payment, based on what you can afford, for some number of years, also based on your financial situation. As long as you pay the agreed-upon amount for the required time, the remainder of you tax debt will be forgiven.
Offers in Compromise: Another strategy which is similar to the partial payment plan is an offer of compromise. This gives you the option to pay a reduced sum, but you can choose whether you want to make payments, or pay a lump sum. There are subtle differences between an offer of compromise and a partial payment plan, so consult your tax professional if you think you may want to choose one of these plans. He or she will gather information such as how much you can pay a month, and how many months you want your payments to span, and steer you towards the right program for you.
Currently Not Collectible: The last plan available for dealing with your tax debt is to be declared "currently not collectible." This is a good plan for you if you have no ability to pay your bill, but are not burdened by other debts. If you are over your head in debt to many companies, you may be forced to declare bankruptcy. However, if you are current on your other bills, but are currently not earning enough income to pay the IRS a monthly stipend, you can be considered "currently not collectible." Under this plan, you will receive yearly statements on the amount you owe. Your situation will be evaluated periodically, but if you are unable to pay for ten straight years, your debt will be discharged. The guidelines for being declared currently not collectible are strict, so consult your tax professional to be sure that you qualify.
It's not hard to deal with your tax debt. If you currently owe the IRS, don't wait! The IRS tacks on late fees and penalties frequently. If you make a plan to deal with your debt, those fees will stop mounting, so you will have an easier time climbing out of the hole.