Can a Tax Attorney Help Me Reduce My Tax Debt?

You might hear about people who have gotten huge fines from the Internal Revenue Service for not filing and paying their taxes on time. At some point, you might even find yourself in the same boat as them, and you’re unsure about whether you need to hire an attorney or not.

So, what can a tax lawyer actually do for you, and are they worth it? These professionals specialize in taxation, and they are generally knowledgeable about the tax codes in your city. They will represent you when you need to negotiate with the taxman, and they will help you with any disputes.

They perform several duties, like drafting legal documents and providing you with sound advice on capital gains taxes. If you have questions with CGT, you can see more info here. Others help in retirement planning, where they can handle wills and understand contracts, while you’ll find others who can negotiate agreements that are related to audits.

How Can they Specifically Help?

Most of the time, they are going to analyze your balance sheets and identify the areas where you can cut back on taxes. For many businesses, you need to do something because nonpayment can be very costly. Also, underpayments can trigger invasive investigations, and the IRS has a lot of means of enforcement to go after businesses that are underpaying and file criminal charges against them.

Tax lawyers will generally work strategically with the IRS, so you’re not required to pay more than your fair share of tax liabilities. They will also make sure that you don’t face any enforcement action, and depending on your situation, they can end up pursuing the following route:

Delinquent Filing

This is when the debt that you have with the taxes was the result of failure to file your returns. It can also be caused by inaccurate figures when you file, and this is where they can suggest that you submit a delinquent return.

There are times when individuals have overstated their liabilities, and if this is the case, they should only pay what they legally owe and not more than that. Those who have accidentally underreported their liabilities need to be current with their filing and be able to determine the amount that they need to pay.

However, it’s a different story for people who have willfully underpaid their liabilities. An amended return may not fully resolve their issue with the IRS, and if this is the case, they may need to do a voluntary disclosure where they may need to intentionally resolve their violations without risking themselves to an investigation involving criminal fraud.

Tax Appeals and Payment Plans

If the IRS has been incorrect in calculating your liability, there are lawyers who will help you with appeals. The expert attorneys at Cumberland Law Group can pursue a re-examination of your tax liabilities to the Independent Office of Appeals on your behalf, and if you’re unsatisfied with the resolution, they can take things to the federal court to address your disputes.

For those who don’t want to face collections, they can also negotiate a payment plan with the IRS. It’s going to be a feasible solution for many individuals who may need to pay in installments because of their situation. With a well-crafted payment plan, you’ll generally be able to get a reduction on the total amount owed from the IRS.

Offer in Compromise

There are opportunities for you to settle a tax amount that’s generally less than what you owe on paper. It’s possible if there’s doubt about the due amount that you need to pay, and the IRS agrees to achieve a final resolution to your situation for a more efficient tax administration.

Sometimes, if you’re able to prove to them that you need time to pay, you might want a lawyer who can help you achieve a currently not collectible status. The IRS will generally defer the payment, and you can avoid enforcement actions with this process.

Tips for Resolving Your Tax Debt to the IRS

Accept that there’s a Problem

You should never run away from the issue since ignoring it won’t make the IRS go away. When the amount is overdue, you can expect hefty fees and interest rates that are going to be added to your liabilities. It’s best to accept that you have back taxes, and you need to find a way to repay them. See post about taxes when you visit this link: https://www.accountingtools.com/articles/income-tax?rq=tax.

With experienced lawyers on your side, you can start with a game plan that will help you have peace of mind. They are going to shield you from lawsuits, and they can offer you options that will help you get out of this tricky situation.

Also, knowing your legal rights will help you a lot. The IRS tends to be challenging to deal with, especially if you’re not knowledgeable about the tax laws in your area. The best attorneys are going to help you file for an extension or set up a payment plan if you don’t have the means to pay for the full amount.

Avoid Overextending Yourself

Sometimes, the IRS can settle with an amount that may be too steep for an average person. Instead of just accepting their word for it and agreeing to the terms that they impose, it’s best to remember that you have legal options available. If you’re unsure of where else to go, a legal attorney is always available for consultation.

Be proactive after you receive mail from the IRS, and deal with this issue as soon as possible. It would be best if you could respond ASAP since the taxman may send only around four notices before they institute a lien to your properties.

It takes a lot of courage to face these problems, but know that the sooner you act, the more manageable your debt will be. Also, many can be surprised about how relentless the IRS can be in pursuing back taxes. Fortunately, with an assertive lawyer on your side, you’ll be able to handle these situations right away, and you can bring down the amount that you owe with their help.