How Best to Deal with an IRS Tax Debt Dispute

In the United States, it’s a requisite for everyone who earns a wage to file their annual tax return. Furthermore, each and every business must file their quarterly employment taxes. For every dollar that is made, that is won, that is bartered, Americans are taxed. It is the basic law. It is also constitutional, and for those who refuse to pay their taxes, the penalties can be grossly severe in terms of not only public humiliation but also incarceration.

Most negotiations are relatively easily handled by the taxpayer, but there are a number of scenarios where the services of a tax attorney are necessary and also highly beneficial.

Communicating with the IRS

You’ve possibly received a notice that is sent by the IRS. And in which case, you will be aware of how it feels when it arrives. What’s even worse is when the IRS appear to ignore the responses you make, or even refuse to provide acknowledgement when you ask questions or make a claim.

To avoid any further penalties, there are of course deadlines to be adhered to whereby issues must be resolved, and quite honestly, the poor level of communication with the IRS means that you ought to consider hiring a tax attorney.

The attorney is able to draft letters in a more direct way, in which case, it will appeal more to the IRS and will thus receive a response. What’s more, the majority of tax attorneys will have specific contact details for each branch of the IRS. This means that matters are dealt with far more swiftly as it can be done over the telephone as opposed to writing a letter.

Offer in Compromise

You may be unable to pay your way in terms of taking care of your federal tax debt. If that is the case, the IRS provides a way to gain a fresh beginning. This is known as an Offer in Compromise.

The program, which is referred to as the Streamline Offer in Compromise, has specific criteria as well as open communication lines. It’s a program that makes it possible for any tax payer to be able to handle their tax matters themselves.

Nevertheless, not everyone qualifies for the program, and for those that do not, they should consider investing in the services of a tax attorney so that their IRS negotiations are trouble-free.

The IRS has a period of up to two years in which to either accept or dismiss an Offer in Compromise. The more you owe, the less likely that the IRS is to accept any settlement offer.

The tax attorney is in a much stronger position than the average tax payer to negotiate with the IRS. He or she will ensure that they entirely comprehend your particular financial situation, and they will frame it in such a way so as to heighten the chances that the IRS will offer an acceptance.

Moreover, the use of a tax attorney is invaluable when you are utilizing the Offer in Compromise as a way to gain a fresh start on account of a medical hardship. The attorney will deal with all the phone calls and the gathering of information, whilst you focus on your medical needs.

Tax Fraud Charges or Tax Evasion

Tax fraud and tax evasion are both criminal offenses whereby the IRS will charge a citizen with either or both should they refuse to pay taxes, file tax returns, or if they negate to reveal the entire source of all their income.

These types of criminal charges carry other impositions such as interest on tax owed, heavy fines, incarceration, prosecution fees, and public humiliation. The IRS website will publish not only your name but also your city, your state, and also your crime.

If you have already been trying to negotiate with the IRS only to find that agents arrive at your office or your home and begin to ask more questions, the very next step you should take is to hire a tax attorney.

Do remember that once the IRS open a formal investigation, any information that you provide to them could be deemed as self-incriminating. Thus, you should avoid handling these charges without the advice of an attorney. The attorney can protect your rights while framing your arguments in a particularly favorable manner.

Need a tax attorney to help with your IRS affairs? Get in touch with the best Rochester tax attorney, today.

Author: Richard Casteel

268 stories / Browse all stories
Richard is the chief author of this blog. He worked as a financial advisor in money market form last 10 yrs. His financial sense in Share trading and any other trading is just outstanding. He just shares his knowledge and experience through this blog. You can contact him directly though

Related Stories »