Though many taxpayers recognize the importance of submitting their taxes on time and in full, there are few who know the full scope of the consequences should they fail to do so. Given that the IRS sends out more than 8 billion pages in forms and instructions yearly, its hardly a surprise that many are unfamiliar with may of the finer points of tax law. Unfortunately, those consequences become a reality for thousands of Americans every year. In the event of a tax liability, the IRS can institute a tax levy, an administrative action whereby it can seize property without going to court. Tax levies can apply to assets that are in the possession of the taxpayer, called a seizure, or to assets in the possession of a third party like a bank or brokerage house. Furthermore, the IRS can require that the employer of the delinquent taxpayer send a portion of the debtor’s wages directly to the IRS. All of these outcomes can have serious financial impact on a person who has already struggled and failed to pay taxes.
Levies can be avoided, however, with the help of a tax relief lawyer. Because of the Fifth Amendment of the Constitution, the government is forbidden to take an individual’s property without due process of law. IRS debtors are entitled to argue their cases against IRS back taxes owed. Debtors who owe more than percent 10,000 should hire a tax attorney lawyer who can help them determine which strategy would be best and aid in negotiation with the IRS. For those who haven’t filed taxes, the prospect is a little less bleak, as all deductions are still available for the reduction of tax liability. For those who submitted taxes yet still owe back taxes, a tax professional can help review returns to determine if they are accurate and look for deductions that may have been overlooked. Either way, paying back taxes to IRS can be done through five avenues, and a tax attorney can help you find the best one for your situation.
1. Installment agreement: Debtors can work with a tax attorney and the IRS to develop a monthly payment plan for paying back taxes to IRS.
2. Partial payment installment agreement: A long term payment plan wherein the debtor pays back the IRS at a reduced dollar amount.
3. Offer in compromise: Tax debts are settled for less than what the debtor owes, following the payment of an initial sum or short term payment plan at a reduced amount.
4. Not currently collectible: The IRS agrees not to collect on tax debt for a determined length of time.
5. Filing bankruptcy: Discharges tax debts completely under Chapters 7 or 13 bankruptcy petitions.
Paying back taxes to irs can only be undertaken through these five methods, but the selection and negotiation process is one that is best supervised by an experienced tax relief attorney. Though the situation of owing back taxes can sometimes feel hopeless, there are ways to avoid levies and wage garnishment. Talking with a tax professional is a great place to start. Read more about this topic at this link: taxlawyerirs.net