Reasons for Hiring a Tax Attorney
If you are faced with any of these situations, we highly recommend finding a tax lawyer to help you.
Settle Back Tax Debt
Back tax debt is money that you owe the IRS for unpaid taxes. This can keep you up at night and be a constant worry. If the problem goes unsolved and you do not work to settle your debt, the IRS can take serious action against you. The good news is that you don’t always need to pay everything you owe the IRS. Quite often, they would rather have something than nothing. A tax attorney can help you pay less than what you owe if they are good. It might seem a bit scary since they seem so pushy to get you to contact them however they are saving you money, they get paid less than what they save you, and the IRS still gets some of what they are owed. It ends up being a positive outcome for all.
You can’t pay taxes when they are due
Whether you just won’t have time to do your taxes or you are worried that you won’t be able to afford what you will owe, there are some options here. A tax lawyer can file an extension for you (or you can do it yourself) which will give you quite a few months of comfort knowing that you haven’t done taxes but the IRS is okay with it.
IRS Penalties and Interest
When you don’t do your taxes on time or do not pay when you are supposed to, the IRS can incur penalties and interest against you. Sometimes it’s a matter of paperwork to get the extra money you now owe reduced.
Are you receiving IRS notices and CP letters?
If the IRS has determined that you owe them money, they will start sending out letters to you. These can be scary. Instead of ignoring them for the time being, you can contact a tax attorney right away and see what your options are. This is a good thing to do before the IRS starts getting more serious about getting what they are owed.
Tax Lien
A Tax Lien is defined as:
Sec. 6321. LIEN FOR TAXES.
If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belong to such person.[1]
What this means is that the IRS is making a claim that they might take something from you in the near future “as payment” for what they are owed. This can be a lien against your property. The immediate result of this is that it can hurt your ability to get credit or borrow money. This should not be mistaken for a Tax Levy.
Tax Levy
A tax levy is when the IRS actually begins seizing property from you. This is the most strongest weapon in their arsenal and if you are in this position we highly recommend finding a lawyer to help you out. Its never too late.