Reasons to Hire a Tax Debt Attorney
If you have problems with your taxes, it may be time to hire a tax debt attorney. These professionals can help you overcome the tax problems you are facing. People often make mistakes with their taxes, such as not understanding their tax code, claiming too much exemption, and failing to follow regulations. Sometimes they overlook small tax deductions, so hiring a tax debt attorney can help you avoid these mistakes. Listed below are some benefits of hiring a tax debt attorney.
Business owners often hire a tax debt attorney for help in resolving their financial problems. Not only do they have extensive experience with business tax debts, but they also know how to negotiate with the tax collectors for the best results. If you are unable to pay your taxes, you risk losing your business. A tax debt attorney will help you work out the best deal possible. Once your tax debt is resolved, you will have peace of mind.
An IRS tax debt attorney can work to get your unsecured tax liabilities settled. If you are in default on payments, a tax debt attorney can help you delay them until the end of the statute of limitations. A tax levy can seize all of your assets. If you can’t afford to pay, a tax debt attorney can help you find a solution that fits your budget. These tax debt attorneys are knowledgeable and experienced and will fight hard for you to get the settlement you deserve.
The IRS may be willing to accept less than you owe if you agree to an offer in compromise. With a debt settlement, you can get the IRS to agree to lower your debt by up to 20%. However, your offer in compromise must be reasonable compared to the total amount of tax debts that you owe and the amount of your earnings. Each relief option has specific requirements and standards for approval, and qualifying can be stressful.
Getting referrals for a quality tax debt attorney is essential. Ask people you know who they have used in the past and ask for recommendations. Word-of-mouth is a great source of recommendations. People can recommend a tax debt attorney based on the experiences they had with them. If you know someone who used the services of a tax debt attorney, then you can consider hiring him or her. There is no harm in asking around – word-of-mouth is often the best recommendation.
The third alternative to paying back your tax debt is an offer-in-compromise. This option is the last resort for people who can’t afford to pay back their entire debt. The IRS will accept a reduced amount in exchange for the chance to eliminate the remaining debt. Typically, this is 20% of the total debt. The IRS is willing to work out an installment plan if you can afford it. The terms for the agreement vary, but the amount is often far less than the debt you owe.
The IRS has a history of being aggressive when it comes to tax collection. They are able to levy a substantial portion of your assets to make sure you pay the debt. A tax debt attorney can negotiate with the government on your behalf to reduce or eliminate the tax liens that you may have. You should also know that there are several exemptions that apply to you. If you are not aware of them, a tax debt attorney can help you navigate this difficult situation.
Taxpayers have many strategies for dealing with delinquent taxes. Some people even consider selling their homes in order to make payments. But this option can be difficult for many families and may result in an unpleasant financial situation. Considering hiring a tax debt attorney is a smart idea for any taxpayer with tax debt. It helps you avoid bankruptcy and will improve your credit rating. While it’s possible to negotiate with the IRS on your own, the IRS may be more likely to accept a settlement if you can make regular payments every month.
An attorney who specializes in tax debt has more experience and training than a CPA. They specialize in this field and have systems in place to handle similar cases. Also, they earn higher fees than generalists. Furthermore, specialists can train their staff and develop policies and checklists that help them handle similar cases more efficiently. This allows them to handle more cases at a lower overhead than generalists. And they are more likely to get favorable results for their clients.