Legal Help with Back Taxes

Taxpayers across the country owe back taxes to the IRS and shouldn’t go about the process on their own. Consulting with a tax attorney can mean the difference between resolving the issue and making it much worse. Back taxes are defined as taxes that are not paid when they are due to the IRS. The more that a taxpayer withholds paying their taxes, the more money they are going to owe the IRS when they contact the taxpayer. Obtaining legal help with back taxes makes it easier and less stressful on the taxpayer that is corresponding with the IRS because a tax attorney has the experience and the knowledge to properly deal with the IRS.

A tax attorney can help deal with back taxes in one or more of the following ways:

  • Settle with the IRS regarding back taxes for a fraction of what is actually owed
  • End wage garnishment and levies on bank accounts
  • Remove any penalties and tax liens applied by the IRS
  • Settle payroll taxes and file delinquent tax returns
  • Handle all correspondences with the IRS so the taxpayer does not have to do so
  • Aid with any tax problems that the taxpayer might have
If you may need legal assistance in dealing with the IRS, consult with a Certified Tax Attorney in your area today for a free case review.

The Internal Revenue Service can place a lien, levy, or garnishment on a taxpayer’s home, motor vehicle, wages or other real property that they own in order to procure the payment of a debt that involves back taxes. How does one owe back taxes? The scenarios vary from state to state and with each individual. In today’s tough economy, many people are having trouble paying their taxes to the IRS on time and correctly. People are out of work and do not have a constant stream of income to help with their taxes. It only takes one missed tax payment to accrue back taxes and then everything can begin to spiral downward.

Should a taxpayer consult a legal professional when dealing with back taxes? In more instances than not the answer should always be yes. A legal professional, such as a tax attorney, can provide expert legal advice when dealing with back taxes including the proper way to file with the IRS and how to have levies, liens, and garnishments removed from a taxpayer’s accounts or property. A tax attorney will also suggest to a taxpayer the option of applying for an offer in compromise with the IRS. An offer in compromise is when the taxpayer makes a payment offer to the IRS and they either approve it or deny the offer. There are three circumstances as to when a taxpayer can pay with an offer in compromise. Those three circumstances are doubt as to liability, doubt that the taxpayer will ever be able to pay the amount in full, and the taxpayer has an economic hardship or other extenuating circumstances.

The Internal Revenue Service is legally allowed to collect on back taxes for a period of ten years. That period of ten years is extended for any taxpayer that is in bankruptcy. If a taxpayer is in bankruptcy and is trying to pay their back taxes, once they file a petition under the United States Bankruptcy Code the interest and penalties automatically end. Taxpayers can protect themselves in advance if they feel that they owe back taxes and the IRS is going to levy their property. A tax attorney will be able to provide advice on whether or not a taxpayer should transfer ownership of their assets to a corporation, place their property into a Limited Family Partnership, transfer their property to a trust, place their life insurance policies into an insurance trust, fully fund their pension plans and 401(k) or transfer their property to family members.

If you may need legal assistance in dealing with the IRS, consult with a Certified Tax Attorney in your area today for a free case review.