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Tax debt relief remains one of the most serious federal issues that both the Internal Revenue Service (IRS) and individuals have to deal with. When individuals and or corporations find themselves in the midst of tax evasion or being in tax debt, the picture is never pretty and the underlying reasons for being in that situation in the first place are vast. Among the most common reasons one would find themselves in a circumstance such as this one are: intentionally evading paying one’s owed taxes to the government, deaths in the family which place them in financial hardship, loss of income or profit which makes paying the amount owed difficult or impossible or simply not understanding tax codes and laws and thereby not paying the correct amount owed.
Tax debt and dealing with the IRS is almost always a stressful event to contend with and it is recommended that if you find yourself in this situation you seek professional consultation from an attorney that truly understands the tax laws and regulations. Because unresolved tax debt can lead to imprisonment and acutely high fines on top of what is owed, taking on this matter with a faint heart or a passive attitude will not serve you or the situation well. It is also likely that if repeated notices or calls are ignored, one’s wages will be garnished by the IRS and they will collect what is owed sooner rather than later.
Failing to pay owed taxes will begin with the IRS filing what is called a Substitute For Return which is a compilation of financial information that the IRS has obtained from past and current W2 forms and any other information that is attached to one’s social security number. The IRS are fairly patient and will usually make vast and numerous attempts to collect the taxes one owes prior to filing a SFR and thus, when it gets to this point, it means many attempts have been made to reconcile the debt and up to this point, those attempts have been ignored. The situation has elevated and it is time to seek counsel from an experienced lawyer for the best possible outcome.
Tax debt relief is the final stage of owed taxes and is the best way to go when in this situation. This process begins by contacting the IRS and asking to be placed in their Tax Advocate Program. At the same time you should contact an attorney to help you with what is to follow. There are several options that one has when it comes to paying back taxes and an attorney can assist you in the best means to an end based on your current circumstances and the specifics of your case.
Here are the four most common tax debt relief outcomes and reconciliations.
Compromise Agreements with the IRS
It is possible that you and your attorney or tax specialist can come up with a feasible compromise with the IRS regarding the back taxes and penalties that are assessed. This agreement will be written and will legally bind you to the IRS until the debt is paid in full. Many tax owing people choose this method because often the IRS will subtract some of the amount owed or forgo some of the penalties that have been added to the debt amount if you agree to pay the set amount every month. Most of the time the written agreement is a five year or less contract and must be followed to the letter.
IRS Payment Plans
The IRS is almost always willing to set up payment plans for any kind of taxes owed including payroll taxes and small business taxes. The reason that these payment plans are a great option other than paying owed money and getting the IRS off your back is that most of them can be negotiated in such a way that you won’t have to pay interest on the amount owed. To successfully dodge interest penalties it is wise to have a tax specialist negotiate the payment plan between you and the IRS.
Debt Relief Agencies
There is also the option of obtaining assistance through an independent debt relief service agency. Choosing this option may work for your situation and some of the companies are qualified, helpful and skilled. However, with debt being at an all time high the scams in the debt relief realm is also high and you must be careful before agreeing with any company who solicits your business. If you choose to work with an independent agency check to see if they are registered with the Better Business Bureau and conduct some Internet research to see if they have been listed as a scamming company.
By Googling the company name you will be privy to any consumer complaints and scams. These companies should have real addresses (not P.O. boxes), listed phone numbers and a list of past customer references that they are willing to give to you for verification on tax debt relief services. Vincent Lee is an expert in helping people with tax problem and givein good tax debt assistance. Through his Tax Debt Relief help and advice, many people have been able to solve their tax problems and avoid future problems with the IRS. Vincent is passionate about his career and loves to share and assist people in dealing with tax problems.
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