Experienced Paradise Valley IRS Tax Collection Lawyers Ready To Assist You
Owing the IRS money is not a position that anyone wants to be in. In the vast majority of cases, a taxpayer thought they were in compliance, and a letter from the IRS stating the contrary is shocking. Taxpayers may not have budgeted for the additional expense or may not even understand why they owe additional taxes. However, if a taxpayer does not take care of the situation, it will only get worse, potentially leading to a federal tax lien or a tax levy.
At Kaczmarek & Jojola PLLC, our skilled team of Paradise Valley IRS tax collection attorneys works with individuals and businesses to help get them back into compliance with the IRS. We routinely negotiate with the IRS to reduce the amount of back taxes to a reasonable amount, preventing further IRS enforcement action. As former IRS trial attorneys with extensive experience at the negotiation table and in the courtroom, we will be prepared to take your case to trial if the IRS is unwilling to settle the issue out of court.
What Can the IRS Do If a Taxpayer Fails to Pay?
If the IRS believes that an individual or business owes back taxes, there are several steps the agency can take to recover what it believes it is due. The first step the IRS will take is to send a letter to the taxpayer, explaining how much they owe. Initially, these notices take an informative tone, asking the recipient to pay their tax debt. However, as time goes on, if a taxpayer does not pay what the IRS asks, the letters start to sound a bit more threatening.
Eventually, if a Paradise Valley taxpayer does not resolve the issue, the IRS may use the following tools to recover the amount of taxes owed:
Federal tax lien: A federal tax lien secures the government’s interest in a taxpayer’s property by attaching to all of the taxpayer’s property and any property they obtain in the future. The IRS may also report a tax lien to the credit bureaus, likely impacting a taxpayer’s ability to get credit. Notably, tax debt and tax liens typically survive a bankruptcy proceeding.
Tax levy: A tax levy is how the IRS seizes taxpayers’ property to satisfy their tax debt. The IRS may levy personal property, real estate, bank accounts, and even income from an employer. Once the IRS levies property, it will sell the taxpayer’s interest and apply the proceeds to their tax debt.
Frequently, a taxpayer cannot pay what the IRS claims they owe. In these situations, the taxpayer should respond to the IRS letters, explaining their inability to pay. Otherwise, the IRS may proceed with a federal tax lien or levy a taxpayer’s assets.
Can Taxpayers Negotiate with the IRS?
Taxpayers who receive a notice from the IRS, indicating they owe back taxes, may be able to negotiate with the IRS to pay less than the total balance due. The IRS also allows some taxpayers to pay down their tax debt incrementally, through a payment plan. However, the IRS assumes that a taxpayer will pay the full amount of tax due, and taxpayers must be proactive to begin the negotiation process. A knowledgeable Paradise Valley tax lawyer can help individuals and businesses negotiate with the IRS to reduce their tax bill.
Offer in Compromise: An offer in compromise is often a taxpayer’s first choice to resolve their tax debt, as it allows them to satisfy their tax debt without needing to pay the full balance. Taxpayers must have filed all their tax returns and meet other eligibility requirements before the IRS considers an offer in compromise.
Installment Plan: If a taxpayer is ineligible for an offer in compromise, they may qualify for an installment plan. The IRS reviews all installment agreement requests, looking at the taxpayer’s income, assets, and expenses, before coming up with a monthly payment amount.
By negotiating with the IRS, taxpayers may be able to resolve their outstanding tax debt and avoid IRS enforcement action without the need for a single, lump-sum payment. Those considering negotiating their tax debt with the IRS should consider working with a dedicated Paradise Valley IRS tax collection lawyer. With an attorney’s assistance, taxpayers will better understand their options and what they can do to eliminate their tax debt and move on with their life.
Contact a Paradise Valley IRS Tax Collection Attorney Today for Assistance
If you are receiving IRS collection letters, ignoring them only makes the situation worse in the long run. The Paradise Valley IRS tax collection lawyers at Kaczmarek & Jojola PLLC can take an in-depth look at your situation and develop a manageable and effective plan. We represent individuals and businesses in all types of IRS collection cases, including those involving federal tax liens and tax levies.
Our trusted legal team also handles other types of tax issues, including:
To learn more, and to speak with an attorney about your situation, call today. You can also connect with us through our online form.