When to Ask for IRS Tax Relief Help
Dealing with the IRS can be overwhelming. Many taxpayers get hit with multiple issues with the IRS that they don’t even know where to start. To compound the problem, the IRS mails many notices, which are a lot of the time terribly confusing.
You need the help from an experienced tax relief attorney when you are faced with the following IRS tax problems:
- unfiled tax returns
- tax liens
- wage garnishments
- bank levies
- tax debt, interest or penalties that you cannot pay off
- payroll tax debt
- seizure threats of real and personal property
- tax audits and underreporter issues
Below are some of the most commonly asked questions by taxpayers needing tax relief help:
Can I get IRS help or IRS tax relief?
Yes. There are many ways for any taxpayer to obtain tax relief. Depending on your financial situation, there is a program for almost everyone. Knowing which one you fit in to can be perplexing so hiring an experienced tax relief attorney is your best bet.
The IRS allows qualified taxpayers to settle their tax debt, obtain hardship status when it is not possible to pay anything due to job loss or other life events, or get into a full pay payment plan or reduced payment plan. The IRS also allows abatement of penalties in appropriate situations.
I have unfiled tax returns, should I file?
Absolutely. Many taxpayers think that if they start filing, it will wake the IRS monster. It will definitely put you on the IRS radar, but in doing so, you will reduce penalties and will also prevent the IRS from filing their own return for you called a substitute return.
Additionally, the IRS generally already knows that you need to file and has most likely mailed notices informing you of this. They obtain your information through employers, contractors, mortgage holders or previous documentation.
So, beware. The longer you go without filing and paying taxes, the more fines you will have to pay. At a minimum, just file. At least you will prevent the failure to file penalty. After filing, then you can look toward resolution with the many options the IRS has to offer.
What if I don’t have the tax documentation to prepare an unfiled return?
As stated above, the IRS most likely already has much of your tax information from employers, contractors, mortgage holders, unless you are self-employed. That always presents problems when trying to piece together income for an older unfiled return.
It is best to find that information through bank statements. Just call the IRS to see what information they have and get a wage and income transcript mailed to you for the appropriate year. You can also get a transcript online at IRS.gov.
What can I do if I can’t pay the IRS what I owe?
IRS tax debt comes about in many different ways such as audit, underreporting of income, or failure to withhold enough over the year. If it is impossible to pay back the IRS, you may be able to negotiate an Offer in Compromise, settling your IRS tax debt for less than you owe. If the IRS accepts your offer, you can pay the amount agreed upon, and all federal tax liens will be removed (generally after one month of the final settlement payment).
It is highly recommended that you get a tax attorney to help with your offer. An offer in compromise takes much planning, strategy and advanced negotiation skills, not to mention it can take up to six months to a year to get accepted.
If you are not eligible for an offer in compromise, other options include:
- Currently Not Collectible (CNC) status—due to your financial hardship, the IRS will suspend collection activity against you. This is just a temporary fix, until your financial condition approves. It is a valuable resolution option because it can allow you time to get your finances in order.
- Payment plan/installment agreement– allows you to pay off your tax debt over time. Usual agreements range from three to seven years. You can elect to pay off the entire amount over time or attempt to negotiate a reduced payoff amount (i.e. partial payment installment agreement). With a PPIA, a full set of financials is required to be submitted to the IRS showing you can only pay a reduced amount.
Taxpayers needing assistance in dealing with an offer in compromise and IRS tax problems should seek the advice of a knowledgeable tax attorney. The Los Angeles Tax Attorneys at Delia Law have many years of tax resolution experience and will competently represent you before the IRS. Please call for a no-cost tax attorney consultation for tax resolution at (310) 494-0100. We look forward to helping you.
This blog post is not intended as legal advice and should be considered general information only.
Keywords: Tax Relief Help, Help with Tax Relief, Tax Relief Attorney