Tax Lawyer and Tax Debt Services
Many taxpayers find that they cannot pay their tax obligations and take the smart step by contacting a tax lawyer who deals with tax and IRS debts or other legal issues. They either failed to put enough money aside, failed to pay their estimated taxes, or failed to properly figure out what they owe – there are many reasons.
In the more serious cases, they also failed to file the proper federal and local tax returns. To some degree, any taxpayer may find themselves in need of tax relief because even the ones who file on a regular basis, may be audited.
- Agreements to Settle IRS Debts
- Auditing Your Taxes
- Tax Collections and Tax Settlement
- Help Avoiding Tax Liens
- Help Avoiding Wage Garnishments
- Help With Tax Preparation
- Help With Tax Appeals and Litigation
- Receiving Tax Relief in Bankruptcy
- What should I do next?
In any of these or related issues, our tax attorneys will provide you with the guidance and representation you’re seeking. We understand the ongoing stress and anxiety you’re experiencing including the financial or even criminal liability you face and our ultimate goal is to provide solutions that address your particular problems swiftly and effectively. If you live in and around New London County we are the tax attorney services to call. We won’t let you down and we’ll actually bring a smile to your face once you realize how we can help.
Taxpayers should know though that if you encounter problems there are remedies. With proper legal representation, a tax lawyer and/or debt lawyer can contest the amount that is owed or work out a payment plan. Many cases can be resolved amicably.
Agreements to Settle IRS Debts
Debtors who cannot reach an agreement with the Internal Revenue Service (IRS) may be able to manage their debt through a bankruptcy. Debtors who are charged with crimes related to taxes do have the right to use legal counsel, for a fee, to contest any criminal charges.
If you have un-filed tax returns, owe back taxes to the IRS, or received a notice that you’re under criminal investigation, the good news is that a solution is in reach.
Below are some of the services our legal team provides to tax payers who have received a notice from the IRS or want to plan in advance about the best way to handler tax arrears or tax debt consolidation.
Auditing Your Taxes
IRS audits include individual audits and business audits. While business audits are generally more complex than personal audits (they often involve many more schedules), individual audits are a scary thought for most taxpayers. Experienced legal counsel:
- Prepare for the audit by conducting a thorough review of the tax return, documentation of records, and analysis of any legal issues – such as the propriety of any deductions.
- Speak to the IRS on behalf of the client before the audit
- Appear at the audit with the taxpayer.
- Review all the parts of the individual or business tax return that are likely to create red flags for the tax auditor – such as business expenses that are proportionally too high in comparison to business income.
The penalties that you may have to pay for failing to pay taxes vary depending on why you failed to pay. Understating the amount you owed or negligence can cause a 20% penalty. Serious underpayment and fraud can result in much stiffer penalties.
Tax Collections and Tax Settlement
We first make sure that the correct figures are being charged. This includes the base amount due, any penalties, and the interest payments. We review the legal steps the IRS can take such as getting a judgment, selling your assets, filing liens, filing notices with credit agencies, and other negative steps.
Our legal team understands that the IRS is often willing to enter into a monthly payment plan for debtors whose debt isn’t too high and who can show some ability to meet the payments on a monthly basis. Installment payment plans can often be arranged for state and local taxes as well. The IRS will usually agree to a payment plan if your tax obligations are less than $25,000.
Help Avoiding Tax Liens
Experienced tax lawyers work to avoid the entry of a tax lien and the enforcement of tax liens. Tax liens are government records files in the county where the taxpayer lives that inform anyone who does a search of your legal records that you the IRS a specific sum of money. If you have a tax lien, it will be hard to get credit for yourself or your business. It can directly affect your ability to get a mortgage.
If the IRS or another tax agency has a tax lien, they can then proceed to try to collect the amount due by seizing and selling your assets – such as your bank account and your car.
A good tax debt lawyer works to avoid the lien in the first place by contesting the amount due or arranging a tax payment plan. If the lien exists, the lawyer works to remove the lien by filing tax appeals, if legitimate, to force the removal of the lien; arranging financing so that the lien can be settled; or negotiating a payment plan which will remove the lien if monthly payments are kept,
Help Avoiding Wage Garnishments
If you owe back taxes and you earn a salary, your wages may be attached by the IRS. Unlike other creditors, the IRS can garnish wages without getting approval from a court first. This ability to garnish wages does not mean that you don’t have defenses. The garnishment must be based on accurate tax delinquency findings. The garnishment should apply to just your earnings and not your spouse’s earnings, unless you filed joint returns. The garnishment must be within the statute of limitations. Wage-earners can keep some of their earnings – but only a limited amount. Less than $850 a month for single taxpayers without children, for example.
A tax debt attorney can help assert defenses. These include showing that the IRS failed to give proper notice and failed to comply with other procedural requirements. You may be able to enter into a payment plan. Filing for bankruptcy may also provide some relief.
Help With Tax Preparation
The first step every taxpayer must take is to file a return. The penalties for a failure to file your return are usually much more severe than failing to pay the amount due. Our legal team has the experience necessary to help you properly prepare individual and business tax returns.
Help With Tax Appeals and Litigation
If a settlement is not possible or you have a legitimate defense to an IRS claim for payment, then filing a tax appeal may be an option. Appeals of federal tax claims are heard in the federal Tax Court. The rules and procedures are different than for most state and federal courts. A skilled tax lawyer explains your rights, the litigation and appeals process, and represents at each stage of the litigation.
Receiving Tax Relief in Bankruptcy
Chapter 7 and Chapter 13 may offer relief if you can’t reach an installment agreement with the IRS or successfully defeat the IS claims.
Chapter 13 allows debtors time to pay off the tax arrears in much the same way a debtor could pay off the arrears through an installment plan.
Chapter 7 can be used but only if the taxes are income taxes. Taxes you owe for other taxes like withholding taxes cannot be discharged. The failure to pay the taxes cannot be due to fraud. The tax debt must be at least 3 years old. You need to have filed the tax returns at least two years before the bankruptcy filing date. The 240 day tax assessment period must have been met – meaning at least 240 days passed since the IRS assessed your taxes. The discharge of a federal tax debt still will not remove any liens – so if you have a home, the taxes will have to be paid before you can get a mortgage or give clear title.
What should I do next?
The next step is to contact us at 860-449-1510 or fill out the free consultation form which will get the ball rolling to clearing your tax debts today!
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