Owe The IRS? You Should Have A Tax Attorney

Choosing your regular tax withholding can feel like a guessing game, but ideally, you should have enough money taken out of your regular check to cover the amount of taxes you’ll be asked to pay. For many reasons including being self employed, receiving an inheritance, tax accounting errors, or a variety of others, you may find yourself owing money after filling out your tax returns. If you owe a substantial amount of money, you should consult a tax attorney prior to making any decisions.


Settling Isn’t Easy
There are plenty of television and radio ads implying that you can settle your tax debt for a significantly lower amount, but you should consult a professional before buying into these claims.
Can You Really Settle Your Tax Debt With the IRS for Pennies on the Dollar” discusses the legal realities of trying to settle a large tax bill: “What these commercials are talking about is getting the IRS to accept an offer in compromise. An offer in compromise-‘OIC’-is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS will accept your OIC only if you convince it that: you aren’t able to pay the full amount in a reasonable time, either as a lump sum or over time through a payment agreement; there is doubt as to the amount of your tax liability (unusual); or due to exceptional circumstances, payment in full would cause an ‘economic hardship’ or be ‘unfair’ or ‘inequitable.’ An example of this would be if you can’t work due to health problems, or you’d be left with no money to pay your basic living expenses if you sold your assets to pay your tax bill in full.” Consulting a tax attorney will allow you to assess whether or not this is likely for your specific case.


A Tax Attorney Can Help You Stay In Compliance with the Law
Not paying your tax bill in full can land you in a lot of trouble with the IRS. In the best case scenario, you will be asked to pay penalties and/or fees. The worst case scenario can land you in prison. However, there are ways in which you can settle your debt in a manner that is less of a financial burden. According SmartAsset.com, “The IRS really doesn’t want to have to come after you to get the money you owe. To make it easier for taxpayers to pay up, Uncle Sam offers payment plans. If you owe taxes and you can’t pay, it’s a good idea to find out whether you qualify for an installment plan.”
Owing a large sum to the IRS is always stressful, and consulting a professional tax attorney can ease this stress. Your attorney will evaluate your situation and help you find the best solution for you, and that itself is worth the consulting fee.


Alaina Brandenburger is a freelance writer living in Denver. Her work can be found at Examiner.com.


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