Can A Tax Attorney Help With Back Taxes?

Believe it or not, falling behind on your taxes is unfortunately not that hard. For instance, it could be as simple as filing a tax return and finding out you owe more than you thought. This can be tough if you have limited financial resources and can’t magically conjure up the money to pay off the tax debt. 

Many people who find themselves in this situation end up ignoring the bill, taking a huge gamble in the process. 

As you’re probably aware, the IRS has the means to force you to pay up and they’ll stop at nothing so it’s best to tackle the issue as soon as possible by leveraging the services of a tax attorney. 

But how can a tax attorney help with back taxes?

That’s what we’ll answer today after getting some basics out of the way.

What Happens If You Ignore Your Back Taxes

The consequences of failing to pay taxes can be devastating. First, there are extensive tax penalties and interest charges that can compound the issue and make your debt even worse. 

If you don’t resolve the issue quickly, IRS will up the ante and start taking action - levying your bank accounts, garnishing your paycheck, and if push comes to shove, seizing personal 

property. 

Still, it’s nothing compared to doing jail time, which is a real possibility if your financial situation is dire. 

Many are curious about a way to resolve a tax problem without parting with their hard-earned cash. Sadly, this isn’t possible. The old saying about the inability to escape death and taxes is true, you will have to pay off the debt in some way or another. 

However, you don’t need to go about it alone. A tax attorney can help guide you through the stressful process and provide you with a way to pay off your debt in a way that minimizes the financial repercussions.

How A Tax Attorney Can Help

If you’re wondering how can a tax attorney help with back taxes, you’re not alone. After all, you’ve got to pay eventually, so what gives?

In short, a legal professional has the necessary skills and they can assist you in finding a legal solution to pay your tax obligations while preserving the maximum amount of your financial resources. 

An attorney will review your finances, including your income, assets, other liabilities, as well as your personal matters. They are familiar with the inner workings of the IRS (including how they deal with debts) and will provide you with a roadmap towards receiving a tax relief option and the program in line with your financial capabilities. 

Furthermore, a tax attorney has already dealt with the IRS many times. Nine times out of ten, they’ll know what the agency wants to hear which can be a lifesaver in negotiations. As a plus, your attorney can act as your advocate for the IRS and will take over this burden, which can be a lifesaver.

Which Repayment Methods Can An Attorney Negotiate On Your Behalf?

As experts in negotiations, attorneys can help set up different methods of solving your issues with back taxes, such as:

• Installment agreements - if you’re reflecting on how can a tax attorney help with back taxes and whether their services are worth it, remember this point. A legal professional can set up an installment plan with the IRS which helps resolve a tax debt without putting too much burden on your overall budget. 

• Offer in compromise - a method involving an offer to the IRS in order to resolve debts for a reduced part of the sum you owe.

• Currently not collectible - in situations where you’re not able to muster up any money at the moment, and an installment plan doesn’t seem financially feasible, an attorney can negotiate with the IRS to postpone collection proceedings - at least for the time being.

It’s worth noting that setting up these alternative agreements is not easy. Proving you meet the threshold of eligibility requires a lot of work, research, and diligent planning which is understandably outside the capabilities of most people. 

At the same time, entering negotiations with a federal agency takes a lot of skill. Even though the installment agreement is mutually beneficial, the IRS agents would prefer to collect a lump sum if possible, as such, they’re not eager to accept any alternative methods if they can simply seize your assets.  

To increase the chances of success and give yourself an extra line of success, you should hire an attorney. Plus, entering the process with legal representation can have a positive effect on IRS representatives as it demonstrates you are serious about resolving all issues with back taxes.

What To Expect From A Tax Attorney?

Many people never had to work with a tax attorney (or any attorney for that matter) so they’re confused about how the process works. Here’s a general overview:

• Scheduling a free consultation: during the first meeting, you’ll get an opportunity to gauge if the attorney is a good fit and the attorney will most likely review your case and figure out the best course of action.

• Signing up: after the consultation, you can sign up for legal services. This is typically the point at which you will provide power of attorney by signing a form - a document allowing the attorney to communicate with other parties on your behalf. 

• Filing tax returns: you’ll provide the attorney with all the necessary documentation and they’ll be able to file your unfiled tax returns.

• Filing various requests: the attorney can check if you’re eligible for any programs and will file requests on your behalf. Including setting up an offer in compromise or requesting penalty abatement.

• Setting up a payment plan: lastly, the attorney will do their magic to set up an installment plan which fits your financial capabilities. 

It should be pointed out this is a general overview of the process. In real life, some of these steps may change depending on your particular set of circumstances.

Help Is On The Way

Owing back taxes can put significant stress on your life and fill your every day with dread. Yet, while a level is justified, a tax attorney can assist you in resolving the issue in a way that helps you preserve your financial independence and assets. 

In fact, here at the Law Offices of Mary E. King, we’ve helped many clients resolve their tax debt and return to good standing with the IRS, and rest assured we can do it for you too. 

Schedule your first consultation via a quick online contact form or by dialing 941-906-7585, and calm down, because help is on the way.

Note: 

The information in this blog post is for reference only and not legal advice. As such, you should not make legal decisions based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.