How a Lawyer Can Help You Settle Your IRS Tax Debt

By  //  September 21, 2021

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Tax relief lawyers are highly qualified tax professionals who can solve many tax problems using a variety of tax solutions. Tax attorneys can offer many advantages that other tax professionals don’t have and are able to provide more solutions than other tax professionals. 

It is a smart idea to speak with a Skilled IRS tax settlement attorney if you have a complicated tax problem.

Benefits of a Tax Relief Lawyer

Beyond a Juris Doctor (J.D.), many tax attorneys have also earned a Master of Laws (LL.M.) in Taxation. This degree provides special preparation for tax law work. Tax attorneys must pass the state’s bar exam. This exam is a rigorous preparation test that demonstrates attorneys’ ability to practice law.

Problems and Situations a Tax Relief Attorney Can Help With

IRS tax lawyers specialize in handling many legal issues related to the tax code. They are familiar with the details of the federal tax code and have a good understanding of tax codes for each state. Most tax lawyers are experts in at least one of these areas:

Tax Court

It is a smart idea to have an attorney representing you in tax court. An experienced tax attorney can represent you in court and will likely have the best advice for your case.

Tax Evasion

Tax evasion and other serious tax offenses can lead to severe consequences. A tax attorney can help you reduce the risk of receiving serious penalties from the IRS. Tax evasion penalties can vary from small IRS fines to prison sentences. Sometimes, a tax relief lawyer can remove penalties that were charged to taxpayers if there is a valid reason not to comply with tax regulations.

When the IRS is Conducting Criminal Investigations

It is not a good idea to take lightly being investigated by the IRS criminal investigation division. Nor should not take any chances if that is the case. The IRS and FBI have highly trained individuals who are employed to investigate individuals. Although it is not common for individuals to be investigated, it is more likely that they are doing so for serious matters. It is a smart idea to speak with a tax attorney if you suspect that you have done something wrong with taxes in the past.

You May Have Committed Tax Fraud

It is a smart idea to hire a tax attorney if you are guilty of tax fraud.

Unfiled Tax Returns

If there are large amounts of unpaid taxes, it can pose a serious problem. A tax lawyer can help you if your tax return filings involve complex issues.

Tax Penalties

Tax penalties may amount to a substantial portion of the total tax amount due to the IRS. A tax attorney may be able to help you find the best solution for your situation if all penalties are not paid.

Tax Liens

A tax lien is the government’s claim on your property. A tax lien can lead to a tax levy, which allows the IRS to legally seize assets. To resolve your tax lien before the IRS takes further actions, a tax attorney is a great choice.

Unpaid Taxes

There are many ways to resolve unpaid taxes. Some of these solutions are supported by the IRS, while others would be rejected. A tax attorney can assess your situation from all angles to ensure that you get the best financial outcome.

A Tax Attorney Can Help with Tax Solutions

Offer in Compromise Tax Settlements

An offer in compromise (or tax relief settlement) is a complicated agreement that allows you to settle your taxes for less than the total you owe. This is a complicated task and should only be done by an experienced tax professional.

IRS Payment Plans

There are many payment options offered by the IRS. An experienced tax attorney can analyze your financial situation to determine the most appropriate payment plan. They will also determine the monthly amount that must be paid and assist with all filings.

Penalty Abatement

Penalty abatement can partially or completely remove tax penalties. Tax penalties are used by the IRS to intimidate taxpayers into complying with tax regulations. The IRS doesn’t want to penalize taxpayers who try to remain in compliance with tax regulations, but have a valid excuse for not filing, not payment, or filing incorrectly. These penalties will be removed by the IRS only if there is reasonable cause to believe that you did not comply with IRS tax regulations.

Innocent Spouse Relief

Innocent spouse relief is a rare type of tax relief, which many tax lawyers are familiar with. Individuals who are married file a joint return. Each spouse is jointly and equally responsible for any tax liabilities that result. Innocent spouse relief was granted by the IRS because it recognizes that it can sometimes be unfair to hold both spouses responsible for tax liabilities that were created.

IRS Bankruptcy

Sometimes, but not always, bankruptcy may be an option to pay back IRS taxes. Taxes may be dismissed if your financial and tax situation meets certain requirements.

Conclusion

Many tax attorneys offer free consultations prior to starting work with you. You can have a free consultation with a tax expert to discuss your options and decide about whether you want to work together. A free consultation also helps you understand what your tax resolution options are without spending any money.

In most cases, free consultations include a meeting with a tax lawyer or a phone call. They will ask you to describe your situation and share any IRS notices or communications. They’ll then discuss tax resolution options with you. Many tax attorneys can estimate the time it will take for your case and the cost of the fees.

After a free consultation, you will be able to start working with the tax attorney of your choice. To move forward, you may be required to make an upfront payment, sign an agreement, and share additional tax documentation.

Many tax attorneys can save clients pennies by negotiating compromises, while others help save millions of dollars every year. Compare the cost of your attorney’s fees to the amount you save on tax debt to determine if it is affordable. Tax attorneys can be affordable if the cost of the fees exceeds the amount of your tax debt.