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Understanding the Five Tax Debt Strategies

December 9th

Owe the IRS a substantial amount of money? Decided it is finally time to talk with a tax debt lawyer about your existing tax debt? The good news is that you have options when it comes to your situation. By speaking with a reputable tax debt lawyer, you can learn about the five different tax debt strategies often used by people in your same position. Here is a brief overview of the five strategies:

Installment Agreement

The installment agreement is simply a monthly payment plan for paying off your tax debt to the IRS. This is usually the easiest strategy available.

Partial Payment Installment Agreement

If you have some of the funds to pay back your tax debt, but not all, a tax debt lawyer may advise you to go with this strategy. Under this plan, you will set up a long term payment plan to pay off the IRS at a reduced amount.

Offer in Compromise

This is another option for those with the ability to pay back some of the tax debt, but not all. Under this strategy, you will make a lump sum or short term payment plan to pay off the IRS at less than the amount you owe.

Not Currently Collectible

This is an IRS program where they agree to not collect on your debt for a specified amount of time. A tax debt lawyer is likely to suggest this when the party does not have the financial ability to pay in the near future.

Filing for Bankruptcy

The final strategy is to simply file for Chapter 7 or 13 bankruptcy and discharge your tax debt under the applicable rules.


Back Taxes: What You Can Do

November 18th

If you owe back taxes, a tax debt lawyer should be your first call. The IRS has collection powers greater than almost any other entity, and is likely to employ these powers to collect the back taxes you owe. These powers include but are not limited to wage garnishment, bank account freezes, and more. However, a tax lawyer can help you to find ways to stop or delay these collections.

Tax Debt Lawyer Can Help

A qualified tax debt lawyer knows a few tricks to help keep the IRS from exercising its muscle in the collection of your back taxes. The first piece of advice is to stay in communication. A big mistake many people make is not to respond to correspondence, either out of fear or anxiety of their inability to pay. However, to the IRS collector, silence is interpreted as non-compliance, and they are more likely to take action against someone who gives no response than someone who is in regular correspondence and being up front about their inability to pay back taxes under the current circumstances.

There are other compromises that a tax debt lawyer can help you reach with the IRS to pay your back taxes. In some cases you can negotiate payments on an installment plan, which offers to pay back the debt on a graduated basis. Another popular alternative is an offer in compromise, which reduces the amount of back taxes you owe but can be very difficult to negotiate with the IRS.

A tax debt lawyer can help you work through your financial woes, sorting out your back taxes and proposing the best solution to keeping the IRS from coming after your earnings.


Fresh Start for IRS Debt

October 4th

If you are one of the many American taxpayers facing significant tax debt, a tax debt lawyer is the best place to start. Consulting a tax debt lawyer will prepare you to face your back taxes with the right tools. IRS debt can be a difficult challenge to overcome, but there are options out there for those facing big IRS debt payments.

Tax Debt Explained

In February of 2011 the IRS announced a sweeping initiative for those owing big money in back taxes. Dubbed the Fresh Start Initiative, it is aimed at providing those who might otherwise feel suffocated by IRS debt to settle for a smaller amount and start from zero. One of the biggest things that the Fresh Start Initiative does is to waive the penalties for many types of late payment, according to a tax debt lawyer. For individuals, this can result in a six month grace period without any penalty fees, a significant amount of time in which to get back on your feet.

Waived penalties are a nice perk, but the single biggest feature of the Fresh Start Initiative is the Offer in Compromise. Abbreviated OIC, this procedure allows a taxpayer to negotiate a settled deal that would result in a reduced IRS debt payment. This process, once incredibly complicated, has been streamlined and simplified to a great degree by provisions in the Fresh Start Initiative, says the tax debt lawyer. Getting clear of your IRS debt at a reduced rate has never been easier.

Consult with a tax debt lawyer today to determine how these tools can help you get out from under your crushing IRS debt.


Strategies for Eliminating IRS Debt

September 4th

Saddled with IRS debt from past tax returns? If so, it can feel like there is no way out. Any tax debt lawyer can tell you that IRS debt is not dischargeable in bankruptcy, meaning even that powerful tool will not help you escape crushing tax debt. The good news is that there are answers out there.

Retain a Tax Debt Lawyer

A tax debt lawyer is a licensed professional and among the few people permitted to present cases to the IRS. A tax debt lawyer will work to get you out from under your IRS debt without destroying your finances and all you have worked hard to build. In many cases, this is achieved through an offer in compromise.

An offer in compromise is a petition to the IRS to pay a portion of the debt owed while being forgiven the remainder. It is the actual process behind many tax debt lawyers’ television commercial advertising IRS debt settlements of pennies on the dollar. In fact, such drastic reductions are uncommon, but the offer in compromise will result in a significantly reduced overall payment than the amount owed in IRS debt.

The offer in compromise means that you will be obliged to make a lump sum payment up front, so it is not always the best option for those who may be lacking the liquid assets to make such a payment. Other common negotiating strategies for reducing IRS debt include agreements to pay in installments, and the ‘not currently collectible’ designation, whereby the IRS agrees not to pursue tax debt collection for an agreed-upon period. The best course of action is to consult a tax debt lawyer and determine together your best strategy going forward.


Understanding IRS Enrolled Agents and Back Taxes

August 7th

If you have back taxes and are facing issues with the IRS, chances are that you’re wondering what your resources are for help. From a certified public accountant to a tax debt lawyer, there are many professionals who can help you settle your back taxes. Recently, there’s been a lot of buzz about IRS enrolled agents. So what exactly is the difference between an enrolled agent, an accountant, and a tax debt lawyer? Knowing who can best help settle your back taxes will make it easier to deal with the IRS.

Why Hire a Tax Debt Lawyer?

While an enrolled agent, accountant, and tax debt lawyer can all help you deal with back taxes, only one of these professionals have the training and experience to work in a court of law. When dealing with the IRS and back taxes, it’s important to work with a professional who understands both the financial and legal ramifications of every action. Here’s a breakdown of how these financial professionals differ from one another.

· Certified public accountants can offer general tax advice and can certainly help you design a plan to repay back taxes. Because they are trained to offer general financial advice, you may already have an accountant that you’re tempted to consult with about your back taxes. An accountant can help with the financial side, but a tax debt lawyer can offer more specific expertise and support.

· IRS enrolled agents are specifically authorized by the IRS to offer specialized advice concerning back taxes. They can help you if you’re being audited or if you need to stay on top of taxes throughout the year.

· A tax debt lawyer provides the same financial expertise as an IRS enrolled agent or accountant, but is also able to handle complex tax situations. Sometimes, back taxes are the least of your worries. You might be faced with harassment from collections, tax penalties, and other consequences. Only a tax debt lawyer has the expertise and experience to legally put an end to all these stressors.

Dealing with the IRS and your back taxes can be an intimidating process, so trust a legal and financial expert to help you through it.


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