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Advantages of Using a Tax Debt Lawyer

January 20th

If you have ever found yourself in a situation where you must be able to understand and dissect the United States tax code, you likely only understand how confusing of a matter it can be. That’s where a tax debt lawyer can come in handy. If you need help with your tax debt situation, it could greatly benefit you to consult a tax debt lawyer on the matter. Here are a few reasons why:

Ability to Negotiate

Having a tax debt lawyer on your side gives you the ability to negotiate the complex tax laws. While each case is different, a tax debt lawyer can help you navigate your way through the codes and find the best possible solution available for your specific tax debt situation. While it may not seem so upon first glance, many of the tax codes can actually be negotiated. Your best shot at taking advantage of these negotiations is through a lawyer who understands the complexities of the code.

Attorney Client Privilege

Your tax debt situation can depend on a lot of things, so it is always good to know you have the attorney client privilege when using the services of a tax debt lawyer. The same cannot be said for working with an accountant or other financial professional. Using a tax debt lawyer lets you rest assured your tax debt situation is being handled in the safest and most professional manner possible.


If you have ever dealt with the IRS, you know how suffocating it can sometimes feel. With a tax debt lawyer you never have to feel alone. By power of attorney representation, your lawyer can handle all of your communication with the IRS for you.


How to Choose Your Tax Debt Lawyer

July 3rd

If you’re buried with IRS debt, chances are that you’re aware of your choice between choosing an accountant versus a tax debt lawyer. Though you’re already comfortable dealing with an accountant during tax season, their experience is limited when it comes to dealing with the legal complexities of back taxes. This is why so many who are beholden to the IRS choose to work with a tax debt lawyer instead. However, with so many options available when it comes to hiring a tax debt lawyer, how do you know who’s right for you?

Questions to Ask Your Tax Debt Lawyer

Fortunately, choosing the best tax debt lawyer to represent your case doesn’t have to be a difficult task. Knowing which questions to ask during your search process will help you find the best ally as you tackle your tax debt with the IRS. Aside from meeting face-to-face to discuss your back taxes, feel free to ask for references. And of course, don’t forget to ask any potential tax debt lawyer these questions:

How can you fix my tax debt problems? A good tax debt lawyer will have a myriad of solutions for IRS debt, but will work to understand your situation and which solution is best for you. Common solutions for back taxes are bankruptcy, an offer in compromise, debt forgiveness programs, and much more!
What can I do about the IRS harassment calls? If the IRS is already harassing you about your tax debt, be sure to ask the tax debt lawyer about the situation. A skilled attorney will be able to alleviate and stop the collection threats that are making your life more stressful than needed. Furthermore, if the IRS is already levying your bank accounts to relieve your debt, be sure that the tax debt lawyer is qualified to protect your assets and release the levy from your account.
What if I can’t pay back my back taxes? Be sure that the tax debt lawyer is capable to negotiate or even eliminate your debts with the IRS.


Tips for Reducing Your Back Taxes

June 19th

For many people, there’s no worse pit-in-your-stomach-feeling than finding out that you owe back taxes. Often, extenuating circumstances such as familial or job issues are what result in IRS debt. When these circumstances don’t resolve, the situation gets worse as interest or late fees mount up, but there are fortunately ways that you can negotiate with the IRS. By maintaining a calm demeanor with open lines of communication, you might be able to reduce the amount of back taxes you owe.

How to Deal with Your IRS Debt

The most important element of reducing your back taxes is to act immediately. Once you realize that you’re going to owe IRS debt, take action by contacting a tax debt lawyer or handling the situation yourself. Fees and interest can quickly add up, making the situation worse, so it’s important to be proactive in handling your situation.

Try Erasing Your Late Fees

One of the biggest ways to reduce the IRS debt owed is to erase your tax fees. If there was a tragedy in your family such as an illness, death, natural disaster, or something completely uncontrollable, you might be exempt from the burden of late fees on your back taxes. Notify the proper authorities by mailing a certified letter stating that you believe you have reasonable cause for failing to pay on time and that you would like to suggest and request the abatement of any late fees or interest on your back taxes. When explaining why you were late, try to keep it as short, yet detailed as possible. In other words, be factual, not emotional.

Pay Back Your IRS Debt

While you might not be able to eliminate back taxes, the quicker you pay back IRS debt over time, the less you’ll owe. Similar to paying back any type of debt, try to make payments the largest reasonable amount that you can afford. If you can’t pay everything back in six years, complete form 656B and apply to have your back taxes reduced.


Why You Need a Tax Debt Lawyer

June 17th

With Americans owing more in back taxes to the IRS than ever before, the search for solution is at fever pitch. The two main options that people are weighing to eliminate their back taxes is a tax debt lawyer or an accountant. While both are certainly qualified and experienced to handle back taxes, taxpayers should seriously consider a tax debt lawyer as their solution. At the onset, the benefits of hiring an accountant might seem similar with a tax debt lawyer, but the benefits of each are incredibly different.

Benefits of Hiring a Tax Debt Lawyer

Most taxpayers go straight to their accountant to save both time and money. However, the experience and legal expertise of working with a tax debt lawyer to eliminate or reduce back taxes is priceless. Remember, an attorney is much more qualified to deal with the IRS and handle your case in court. Since dealing with the IRS is both stressful and legally complex, it’s best to hire a tax debt lawyer who is trained and experienced to handle back taxes.

Benefits of hiring a tax debt lawyer include:

Comprehensive advice. A tax debt lawyer has the best of both worlds – legal and financial expertise – whereas an accountant or CPA is limited more to financial knowledge. With a tax debt lawyer, you’ll be presented with more opportunities and solutions such as bankruptcy to eliminate back taxes. When it comes to complex problems with your back taxes, you’ll want as many solutions as possible.
Sound representation. Because a tax debt lawyer is an attorney equipped to present any case in court, you can rest assured that you’re getting the best representation possible for your back taxes. Your attorney will be able to handle tax negotiation and can handle all forms of correspondence with the IRS.
Attorney-client privilege. This legal protection allows you to discuss things openly with your tax debt lawyer since everything will remain confidential. This allows you to communicate more clearly and effectively than with an accountant, thereby allowing the tax debt lawyer to serve you more effectively.


4 IRS Debt Forgiveness Options to Consider

April 26th

With the IRS’s recent expansion of their taxpayer forgiveness program, more and more middle-class Americans are able to resolve their IRS debt issues. Whether they approach the situation on their own or work with a tax debt lawyer, Americans are able to work out their debts because of the tax forgiveness program. This is a major benefit for Americans who are struggling to make multiple bill payments in the midst of a rough economy.

Forgiveness of IRS Debt

Using a tax debt lawyer can help you navigate through all the different options of IRS debt forgiveness. However, should you decide to pursue this on your own, it’s important to know all the different options available. Each IRS debt forgiveness program is tied to a specific situation that taxpayers might face.

1. Uncollectible Status. If you are unemployed or underemployed and just don’t have the means to pay your IRS debt, then file for this status. This will momentarily halt payments until you are able to begin repaying the IRS debt. This is only a temporary solution.
2. Offer in Compromise. With this option, you can settle your IRS debt for less than you actually owe! This process has saved taxpayers over a billion dollars since it was first implemented. Working with a tax debt lawyer exponentially increases the chance of this plan working.
3. Chapter 13 bankruptcy. Did you know that income taxes are dischargeable through bankruptcy? Through Chapter 13, your IRS debt is reorganized so that you can make manageable payments. However, because the Offer in Compromise has become wildly popular, the Chapter 13 option isn’t as used as it once was.
4. Chapter 7 bankruptcy. Certain taxes from your IRS debt can be discharged completely. A tax debt lawyer can help you understand which taxes are eligible for a Chapter 7 bankruptcy and which ones aren’t. This is typically the very last resort for solving tax debt problems.


3 Common Tax Debt Mistakes to Avoid

April 17th

For most people, the stress is finally over once you file your federal income taxes. For others, however, the problems are just beginning once they realize that their tax obligation is more than the expendable cash in their bank account. This common scenario often leads to long-term tax debt with the IRS, but there are many people who try to pay down their tax debt immediately. Instead of hiring a tax debt lawyer to help solve their problems, they make financial mistakes that have lasting consequences.

Be Smart When Paying Back Tax Debt

While dealing with the IRS is a serious issue, it’s important to be smart about it and ensure your actions don’t hurt you financially in the long run. Many people who make the rush to pay off tax debt often do so at their own expense. Common mistakes include:

Raiding your retirement savings. Remember, retirement accounts are almost always tax deferred. When you pull money out early, not only do you pay a large penalty fee, but you also have to consider that the funds withdrawn are taxable to you. Regardless, it’s a poor move to take money away from your retirement savings.
Skipping payments. When people fall into tax debt, one of the things they want to do to pay back the debt quickly is skip payments. Whether they skip a payment for next year’s taxes or skip a payment on their mortgage, they make a promise to themselves that they’ll only skip this once and double-up next time. The only problem is that they face a penalty, and come the next payment, they can’t double up as planned. Now they’re behind on two fronts. Speaking with a tax debt lawyer can help you find a solution that doesn’t damage your other payments.
Ignoring it. There are certain people who use their ability to ignore something as a coping mechanism. They fail to open the mail, or to pay attention to deadlines because they can’t meet the tax obligations anyway. However, it’s important to show your good faith effort no matter how deep you are in tax debt. You never know how it might help you!


Addressing Tax Debt With a Tax Lawyer

February 15th

It’s that time of the year… the accounting firms are working overtime and everyone’s attention is shifting gears to think about taxes… and, unfortunately, tax debt. If you have tax debt on your mind, then you might consider speaking with a tax debt lawyer.

5 Tax Debt Tips

  • Find out exactly what you owe. Your tax debt isn’t just the money you’ve failed to pay. The IRS is keen to charge you interest, which is also a part of your tax debt. In order to fully address your situation, it’s important that you know exactly what you owe.
  • Look for exemptions. Chances are, you could be saving money on your tax “bill.” While hiring a professional tax debt attorney can help you out with this, there’s no research quite like your own. Start searching through the information available online.
  • Organize your documents. If you’re facing an audit, you’re going to have to get your documents organized. Even if you aren’t, we recommend getting all of your financial information together to make the tax debt repayment process as efficient as possible.
  • Start negotiating your tax debt with the IRS. Like any debt collector, the IRS would rather be paid something than nothing. We bet that you’ll be surprised by how much slack the IRS is willing to grant you. Just don’t expect to get off totally scot-free.

Keeping Tax Debt Away

October 15th

Tax debt can be serious business, especially if you aren’t prepared for it. While we may  not always be able to avoid owing the IRS money, there are ways to ensure you aren’t taken by surprise or put into a financial hardship over tax liabilities.

Simple Steps

One of the biggest determining factors in whether you will owe money to the IRS or receive a refund is your tax withholding amount. This is the amount that you claim on your W-4, which is based on your personal status and whether you have any dependents. The higher level of withholding, the more you are essentially prepaying towards your tax bill for that year. This generally means that more will be taken out of your paycheck each time. For many people, having a higher withholding can ensure they won’t owe at the end of the year.

Even if you don’t want to claim a higher level of withholding on your W-4, you can still take measures to avoid IRS debt. First, be sure to know which tax deductions you may qualify for and keep accurate documentation of those expenses, like receipts and billing statements. If you are self-employed, have a tax professional calculate your estimated taxes and make quarterly payments throughout the year. This will prevent you from ending up with a large tax bill at the end of the year. Last, consider setting aside money throughout the year that can be used to cover any gaps in what you may owe the IRS.

If you have any questions about how to avoid tax debt, or to find help with resolving back taxes, contact a tax  debt lawyer to review your case.


Taking Care Of Taxes In Disaster Relief

August 29th

So far this year, we haven’t had many weather related disasters. However, as Hurricane Isaac makes landfall today, the IRS wants to remind taxpayers of ways they can safeguard their financial information from the consequences of major storms.

Emergency Plan

Even though it isn’t tax time yet, the IRS advocates that people keep track of their financial information and documents all year long to prevent tax debt troubles. When weather-related or personal disaster strikes, many people have found themselves unprepared for the outcome. Therefore, the IRS encourages everyone to have an emergency plan in place to protect vital information.

First, make sure all you have a duplicate copy or backup of all your financial records. You can make hard copies of your information and store them in a lock box away from your home, or create an electronic back up of your data. Paychecks, bank records, investment or retirement account documents and any receipts for itemized claims should all be protected as part of your back up files.

Also, document what is valuable in your home. Take pictures of your assets and personal property and store these photos off-site along with your financial records. Any items that are damaged during the storm may be eligible to be claimed as casualty losses on your next tax return.  The more evidence you have that a particular item existed and was then damaged; the better your chances of getting a tax break for the cost of replacing such items.

The IRS does have special representatives that deal solely with disaster relief. Even if you aren’t in the path of Hurricane Isaac, take steps to protect your information and keep the IRS’ contact information on hand. Anyone needing more information about disaster relief from the IRS can call 1-866-562-5227.






Finding Professional Tax Debt Help

August 22nd

TV and radio ads offering tax debt relief services are a dime a dozen, which means that their services are too. Dealing with back taxes can be stressful, and finding the right agency to help you resolve these issues can be tricky. Before allowing a tax debt relief company manage your IRS debts, be sure they  meet some specific criteria.

The Right One

A high quality tax debt relief agency will staff professionals, specifically those who are highly trained in the area of finances, specially taxes. Certified Public Accountants or tax debt  lawyers are two great examples. Both of these professionals will have the knowledge needed to better manage your unpaid taxes.

A reputable company will also be rated highly by the Better Business Bureau or hold accreditations that are recognized by other business regulators. Find a company who can prove they are in good standing with such agencies.

Further, a good tax debt relief agency will offer an array of services and not be ‘sales’ oriented. In other words, find someone who can review your situation and discuss all of your options, even those that do not include their services.

Last, find a company that provides documentation of their services and keeps you in constant contact with the IRS. Never allow a company to represent you without allowing you to be in open communications about your debts.




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