IRS Tax Settlement Attorneys – If you owe taxes to the Internal Revenue Service (IRS) and cannot afford to pay them, you may be looking for a way to settle your debt and avoid penalties, interest, or collection actions. One option that you may have heard of is hiring a tax settlement attorney to negotiate with the IRS on your behalf. But what are tax settlement attorneys, and how can they help you? Here are some answers to these questions.
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What Are Tax Settlement Attorneys?
Tax settlement attorneys are lawyers who specialize in resolving tax disputes with the IRS. They have the knowledge and experience to deal with complex tax laws and procedures, and they can advise you on the best course of action for your situation. Tax settlement attorneys can help you with various tax issues, such as:
- Filing back taxes or amended returns
- Requesting penalty abatement or interest reduction
- Applying for an offer in compromise or an installment agreement
- Challenging an IRS audit or a tax lien or levy
- Representing you in tax court or appeals
Tax settlement attorneys can also communicate with the IRS on your behalf, handle all the paperwork and documentation, and protect your rights and interests throughout the process.
Benefits of Hiring a Tax Settlement Attorney
Hiring a tax settlement attorney can have several benefits for you, such as:
- Saving you time and money: A tax settlement attorney can help you avoid costly mistakes, reduce your tax liability, and expedite the resolution of your case.
- Reducing your stress and anxiety: A tax settlement attorney can take care of all the details and deal with the IRS for you, so you don’t have to worry about missing deadlines, making errors, or facing harsh consequences.
- Increasing your chances of success: A tax settlement attorney can evaluate your options and negotiate with the IRS to achieve the best possible outcome for you. They can also help you avoid or overcome any obstacles or challenges that may arise along the way.
How to Find a Reputable Tax Settlement Attorney
If you decide to hire a tax settlement attorney, you should do some research and due diligence before choosing one. Here are some tips to help you find a reputable and trustworthy tax settlement attorney:
- Ask for referrals: You can ask your friends, family, or colleagues if they have used or know of any good tax settlement attorneys. You can also contact your local bar association or use online directories such as FindLaw to find qualified tax lawyers near you.
- Check credentials: You should verify that the tax settlement attorney you are considering is licensed to practice law in your state and has experience in handling tax cases similar to yours. You can also check their ratings, reviews, or complaints on websites such as Avvo or Better Business Bureau.
- Compare fees: You should ask for a written fee agreement that explains how the tax settlement attorney will charge you for their services. Some common fee structures are hourly rates, flat fees, retainer fees, or contingency fees. You should also ask about any additional costs or expenses that may apply.
- Schedule a consultation: You should meet with the tax settlement attorney in person or over the phone to discuss your case and ask any questions you may have. You should also evaluate their communication skills, professionalism, and personality. You should feel comfortable and confident with the tax settlement attorney you choose.
IRS tax settlement attorneys are lawyers who can help you resolve your tax debt with the IRS. They can offer you various benefits, such as saving you time and money, reducing your stress and anxiety, and increasing your chances of success. However, not all tax settlement attorneys are created equal, so you should do some research and comparison before hiring one. You should also be aware of the risks and limitations of hiring a tax settlement attorney, such as:
- No guarantee of results: A tax settlement attorney cannot guarantee that they will be able to reduce or eliminate your tax debt. The IRS has strict criteria and guidelines for accepting any form of tax relief, and each case is different. The final decision rests with the IRS, not with the tax settlement attorney.
- Potential scams or frauds: Some unscrupulous tax settlement firms may make false or misleading claims about their services, charge high fees upfront, or fail to deliver on their promises. You should be wary of any tax settlement firm that asks for payment before providing any service, guarantees a specific outcome, or pressures you to sign a contract without explaining it fully.
- Alternative options: Hiring a tax settlement attorney is not your only option for dealing with your tax debt. You may be able to resolve your case by yourself or with the help of other resources, such as Local Taxpayer Advocate, FreshBooks, Investopedia, or IRS Tax Settlement Attorneys. You should explore all your options and weigh the pros and cons before making a decision.
Types of Tax Settlement
There are three types of OIC that the IRS may consider, depending on the taxpayer’s situation:
- Doubt as to liability: This type of OIC is based on the premise that the taxpayer does not owe the tax or owes less than the amount assessed by the IRS. This may be due to errors in calculation, interpretation of law, or lack of evidence.
- Doubt as to collectibility: This type of OIC is based on the premise that the taxpayer cannot pay the full amount of tax owed within a reasonable time frame, even if the tax liability is correct. The IRS will look at the taxpayer’s income, expenses, assets, and future earning potential to determine their ability to pay.
- Effective tax administration: This type of OIC is based on the premise that paying the full amount of tax owed would cause economic hardship or be unfair and inequitable for the taxpayer. This may be due to exceptional circumstances such as serious illness, disability, or natural disaster.
Who Is Eligible for a Tax Settlement?
Not every taxpayer can qualify for a tax settlement. The IRS has strict criteria and guidelines for accepting an OIC. Some of the factors that may affect eligibility include:
- The amount and type of tax owed
- The statute of limitations for collecting the tax
- The accuracy and completeness of the information provided by the taxpayer
- The compliance history and good faith efforts of the taxpayer
- The financial situation and hardship level of the taxpayer
- The availability and value of assets that can be liquidated or used as collateral
Frequently Asked Questions (FAQ): IRS Tax Settlement Attorneys: A Guide For Tax Payers
How Do You Negotiate Taxes?
- Contact HMRC as soon as possible if you can’t pay your tax bill on time or if you think your statement is wrong. You can call them on their income tax helpline at 0300 200 3300 or use their online payment agreement service.
- Ask for a time-to-pay agreement, which will give you more time to pay, or a schedule to pay your tax in installments. You’ll need to explain why you can’t pay and provide details of your income, expenses, savings, and assets. You’ll also be charged interest for the duration of the agreement.
- Consider an offer in compromise, which is a settlement for less than the full amount you owe. This option is only available if you have no realistic way of paying your tax debt in full or over time. You’ll need to prove that paying the full amount would cause you financial hardship and that the offer is reasonable based on your income and assets. You’ll also need to pay a fee and a percentage of the offer amount upfront.
- Seek professional help from a tax adviser, accountant, or solicitor if you need assistance with negotiating with HMRC or filling out the required forms. They can also help you avoid penalties and legal actions that HMRC might take against you if you don’t pay your tax debt.
What Are The Tax Implications?
The tax implications are the effects that a certain action or situation has on your taxes. For example, if you sell a property that is not your home, you may have to pay Capital Gains Tax on the profit you make. Similarly, if you gift money to someone who is not your spouse, civil partner, or an exempt beneficiary, you may have to pay Inheritance Tax if the amount exceeds your annual allowance.
Some actions or situations may have tax implications for both the giver and the receiver. For example, if you buy or sell a business, you may have to consider the tax consequences for both parties. The tax implications may depend on various factors, such as the type of business, the value of the assets, the method of payment, and the timing of the transaction.
The tax implications can be complex and vary depending on your circumstances. Therefore, it is advisable to seek professional help from a tax adviser, accountant, or solicitor before making any decisions that may affect your taxes. They can help you understand the tax rules, calculate your tax liability, and plan to minimize your tax burden.