Fresh Start Program From The IRS

Do You Need A Lawyer To Negotiate With IRS?

Do You Need A Lawyer To Negotiate With IRS?

No one wants to be in trouble with the IRS, but if you're avoiding their calls and hiding from your mailbox, it's time to take action. Speak to an IRS attorney at Ideal Tax Group about resolving your tax situation before it gets any worse.

IRS tax law allows you to represent yourself, but most taxpayers choose professional representation to increase the chance of an acceptable settlement. An experienced attorney, accountant, or other tax specialists can help reduce or eliminate IRS contact.

Admittedly, paying taxes is tough, but it doesn't have to be a recurring nightmare. Many programs are at your disposal to get you back on solid footing and erase any past-due tax debt. No matter what your unique circumstances may entail, don't be afraid to seek help. You won't regret it!

Many people are hesitant to contact the IRS because they think it will make their situation worse. However, an experienced attorney can help you improve your overall standing with the IRS. They know tax law and have a solid understanding of how the tax process works so they can help you resolve any disputes while also finding the best solution for your specific problem.

The IRS has many methods of getting the money it's after from delinquent taxpayers, such as levying assets, garnishing wages, and placing liens on the property. If you're ignoring or giving up on your IRS problem, know that it will not simply disappear--the agency will continue to pursue payment until it receives what is owed.

If you're worried about your taxes, a tax lawyer from the Ideal Tax Group can assist you. Here's what they can do for you and what to expect when reaching out.

When you owe the IRS money, you may be able to negotiate a payment plan or an offer in compromise.

The initial step is to figure out a monthly payment you can realistically make. To do this, look over your financial documents and calculate your net income and expenses for the month. Having done that budgeting, you can start haggling with the IRS.

The IRS offers negotiating terms for those struggling to pay their taxes in full, and the most popular method is requesting a payment plan. Under this arrangement, you agree to make monthly installments until your debt is expunged. Generally speaking, the agency will be willing to work with you so that the payments are manageable.

If you can't pay what you owe monthly, perhaps an offer in compromise would work for you. With this method, Instead of paying the entire amount off immediately, you agree to pay a lump sum that's less than the full amount - meaning both parties save money in the long run. The IRS will only accept an offer in compromise if they believe it’s more than they could get from any other type of repayment arrangement with you.

Why Should You Hire a Tax Attorney?

Why Should You Hire a Tax Attorney?

A tax attorney can provide you with the appropriate advice and direction to ensure that you reach a comprehensive agreement with the IRS. They will also be familiar with how to work out any intricate details surrounding your case and negotiate on your behalf for the best possible outcome.

A tax attorney can provide you with an accurate description of the negotiation process with the IRS, helping you choose if it's a worthwhile endeavor.

A tax lawyer's skill in negotiations is extremely beneficial because they have seen nearly every negotiating scenario possible, and as a result, will be able to offer useful insights.

What Issues Can An IRS Attorney Help You With?

A tax lawyer can assist you regardless of how much money you owe in back taxes or if the IRS has made a mistake in its assessment of your tax liability. Here are some examples of what a tax lawyer can do for you:

Offer in Compromise

An offer in compromise allows a taxpayer and the IRS to settle an outstanding tax liability for less than what is owed. This can be useful if you're unable to pay your full tax liability or if doing so would cause financial hardship.

Payment Plan

Those unable to pay taxes owed in full upfront can set up payment plans with the IRS. If you're able to budget to monthly payments, but not a lump sum, arranging a payment plan through an attorney helps you stay on good terms with the IRS or state and avoid penalties.

Installment Agreement

The Internal Revenue Service offers payment plans, or installment agreements, to negotiate and settle your tax debts over a longer duration of time. An IRS installment agreement allows you to pay off your taxes every month through monthly installments.

You will often need to negotiate with the IRS to agree to payments. Payments can be made automatically or through a debit or credit card. If you don't make your payments on time, the IRS could void your installment agreement altogether.

IRS Wage Garnishment and Levy Release

The IRS may place a levy on your bank account or garnish your paycheck if you're behind on taxes, which can be incredibly stressful because you need that money to survive. To help ease the financial burden, your IRS tax attorney may be able to get the levy released.

You can release a levy or garnishment in one of several ways, such as by proving to the IRS it causing you severe economic hardship. For example, if the money being taken from your paycheck is making it difficult to pay for basic needs like food and housing, that would be considered an extreme financial burden.

Back Tax Resolution

Collective term for taxes that were owed in a previous year but remained unpaid, either partially or fully. These taxpayers are not only responsible for the back taxes, but also any fines, penalties, and interest that have since accrued.

The government will take harsh actions if you don't repay your taxes, such as wage garnishment and seizure of property, including bank accounts. However, a successful resolution to your back taxes is possible.

Penalty Abatement

If you find yourself in a situation where you can't pay or file your taxes on time, know that there's still hope. Your lawyer might be able to get the penalties removed or lowered through something called penalty abatement. However, it's important to note that the fines for not being able to meet these tax obligations on time can be high—sometimes higher than the bill itself.

After we remove the penalties from your tax bill, you may be able to set up a payment plan for the rest of the money owed.

Statute Of Limitations Review

The IRS has a ten-year statute of limitations on tax returns that begins as soon as the taxpayer files their return. If the IRS prepares a substitute for a return, it doesn't count as being filed. This means that the IRS only has ten years to collect taxes after the clock starts ticking. If they don't collect within this time frame, then the tax is no longer payable.

Upon completion of a comprehensive review of your case, we will determine if you can take advantage of the statute of limitations. If so, any tax liability imposed on you by the IRS must be forgiven.

Release Of A Federal Tax Lien

If the IRS has placed a lien on your property, it means that they have a legal claim to your belongings. This can also be done by other creditors, but the IRS generally takes precedence. Your property includes things like cars, houses, money in accounts, and any other personal possessions.

Although a lien and levy may sound similar, they are quite different. A levy is when the IRS has seized your property to be sold off to pay for any outstanding back taxes you may have. However, a lien can be removed with the help of an attorney.

Do You Need A Lawyer To Negotiate With IRS?
What Issues Can An IRS Attorney Help You With?

What Qualifications Should You Look For In A Tax Attorney?

A successful tax attorney must know the ins and outs of tax law, as well as have a foundation in accounting and business law. All attorneys need keen communication skills, both written and verbal, the ability to negotiate terms, and solid research abilities.

How Much Does A Tax Lawyer Usually Charge?

Calling a law firm for the first time can be daunting if you've never done it before, but don't worry. The lawyers understand that you're not familiar with legal jargon and will communicate with you in layman's terms. Also, most tax attorneys offer free consultations so that they can get to know potential clients and determine how to best help them.

The initial consultation is free, and during it, the tax attorney will ask for an overview of your issue. With their experience in tax resolutions, they will then provide you with a summary of potential options that fit your situation. They can furthermore assess what might happen if you choose to ignore the problem altogether.

Most tax attorneys choose one of two pricing structures: an hourly rate or a flat fee.

  • Hourly Rate: The average hourly rate for a tax attorney is $200 to $400, but some well-experienced attorneys or those working in big firms located in bustling metropolises could charge over $1,000 per hour.
  • Flat Fees: If you're not interested in a retainer, another option is called a "flat fee." With this billing method, you pay one lump sum regardless of how many hours your lawyer spends working on your case. Flat fees are more common with straightforward or typical legal matters.
Are Tax Attorneys Worth It?

Tax attorneys are beneficial because they understand how the IRS works and can make plans that will likely produce a positive result for the taxpayer. Additionally, tax attorneys will safeguard you from any wrongful behavior. And if necessary, they can also stand with you in court.