10 Steps to Resolving Your IRS Tax Issues
Navigating the complexities of the tax system can be a daunting task, especially when faced with IRS tax problems. The intricate web of tax laws and regulations often leaves individuals and businesses feeling overwhelmed and unsure of how to proceed. But fear not, as professional assistance from a skilled tax attorney can help you navigate these murky waters and resolve your tax issues efficiently. One common question people ask is, “how do I resolve an IRS tax issue?”
By enlisting the services of a tax attorney, you can not only gain a better understanding of your tax situation but also effectively resolve disputes and achieve a favorable outcome. Call Damiens Law Firm, PLLC at (601) 957-9672 to learn more about our tax resolution services.
Hiring a Tax Attorney for IRS Tax Issues
Facing IRS tax problems can be a harrowing experience. The ever-changing landscape of tax laws and regulations can make it challenging for individuals and businesses to address their tax problems on their own. This is where the guidance of a tax attorney comes into play. At Damien’s Law Firm, PLLC, our lawyers possess a deep understanding of the tax code and are experienced in dealing with the IRS bureaucracy.
Engaging a tax attorney proves valuable in dealing with tax problems. At our law firm, we can offer you personalized tax consultation, strategies to resolve tax issues, audit representation, and help with penalty abatement. Furthermore, our tax attorneys can support you with:
- Innocent spouse relief
- Resolution of tax liens and levies
- Guidance for offers in compromise
- Proactive tax planning and compliance
When to Hire a Tax Attorney
The decision to hire a tax attorney should not be taken lightly. It is important to recognize the situations that warrant professional assistance. Consult a tax attorney if you are confronted with tax problems such as:
- Tax fraud accusations
- Delinquent tax returns
- Unpaid taxes
- Unfair tax liens
Ignoring these issues can lead to severe consequences, including financial difficulties and legal ramifications.
A tax attorney can provide valuable advice on resolving tax problems, represent you in negotiations with the IRS, and provide legal counsel on tax matters, including challenging an IRS decision. Professional assistance guarantees an effective presentation of your case to the IRS, enhancing your chances of a favorable resolution.
Services Provided by a Tax Attorney
Tax attorneys offer a wide range of services to help you navigate the complexities of the tax system. One of the primary services provided is communication with the IRS on your behalf, including the taxpayer advocate service (TAS). This means that your attorney will represent you in all interactions with the IRS, such as:
- Efforts to resolve disputes
- Advocating for your interests
- Negotiating with the IRS
- Furnishing necessary information and documentation on your behalf.
Tax attorneys also crucially represent you during IRS audits. They will assist in preparing all necessary documents, constructing a defense strategy, and representing you in all dealings with the IRS during the audit process.
Additionally, tax attorneys can request tax relief on your behalf by filing an Offer in Compromise or requesting penalty abatement, which allows for penalties and interest to be waived or reduced.
Your Tax Situation and Rights
To address your tax concerns effectively, you must first comprehend your tax situation and be cognizant of your rights as a taxpayer. Here are some steps to help you:
- Review your tax returns, financial records, and any correspondence from the IRS to gain insights into your tax situation.
- Stay up-to-date with your tax-related documents and communications.
- Identify potential issues and devise a plan to address them.
Awareness of your rights as a taxpayer is also vital. The Taxpayer Bill of Rights provides individuals with the right to:
- Fair treatment
- Privacy
- Confidentiality
- A fair and just tax system
This includes the right to representation, which allows you to seek professional assistance from qualified tax professionals, such as tax attorneys, CPAs, or enrolled agents, who may be part of an independent organization.
Additionally, the right to be informed guarantees that you receive clear and concise explanations of relevant tax laws and any corresponding actions the IRS intends to take regarding your tax situation through the IRS system.
Timely Payments and Payment Plans
Timely payments to the IRS help reduce potential penalties and interest charges. One way to ensure timely payments is to explore the various payment plans available for IRS tax debt. If you owe $50,000 or less, your ACS representative can provide a payment plan that allows you to pay your balance in full over a maximum of 72 months (six years). Simply divide your total liability by 72 to calculate your estimated monthly payment.
Keep in mind that:
- Having a payment plan can prolong the IRS statute of limitations 10-year period.
- Adhering to payment deadlines and fulfilling your tax obligations can prevent further complications down the line.
- Employing electronic payment systems or examining payment plans may facilitate the process.
Exploring Tax Settlement Solutions
If you are struggling to pay your tax debt in full, tax settlement solutions may offer a viable alternative. Various options exist to assist with settling tax debt for a lower amount than what is currently owed. Two popular tax settlement solutions include Installment Agreements and Offers in Compromise.
An Installment Agreement allows taxpayers to make monthly payments over a predetermined period, while an Offer in Compromise enables eligible taxpayers to negotiate with the IRS to settle their debt for an amount less than the full balance owed. Utilizing effective tactics when interacting with the IRS’ Automated Collection System can assist in the resolution of minor tax matters.
Tax Liens and Their Impact
The IRS can place a tax lien on an individual’s property if they have an unpaid tax debt. This is a legal claim and is known as a tax lien. Tax liens can have adverse effects on your credit score and pose challenges when attempting to borrow money or dispose of property. To resolve a tax lien, you can:
- Verify the lien with the IRS
- Request the lien payoff amount
- Pay the outstanding tax bill in full
- Have the IRS remove the lien
To safeguard your assets and ensure financial stability, preventing tax liens is vital. By addressing any outstanding tax debt before the IRS files a lien, you can avoid the negative consequences associated with tax liens. Additionally, understanding your rights as a taxpayer can help you navigate the complexities of tax liens and their impact on your financial situation.
Working with the IRS to Reduce Tax Debt
When facing financial hardship and looking to decrease your tax debt, you may consider negotiating with the IRS. Be sure to prepare your financial documents before meeting with a representative. This includes details about your income, assets, and expenses. While it is possible to successfully resolve minor tax issues through negotiation without professional representation, building a positive relationship with the IRS representative can facilitate the process of obtaining a favorable outcome, such as a hold on adverse collection activity.
Setting the conversation’s tone with the IRS ACS representative is key as it sets a clear goal for the call and serves as a negotiation starting point. By approaching negotiations in a respectful and honest manner, you increase the likelihood of reaching a satisfactory resolution to your tax debt.
Avoiding Tax Penalties
To maintain a healthy financial situation, it’s important to avoid tax penalties. To prevent tax penalties, you should:
- Stay abreast of applicable tax regulations
- Maintain accurate and orderly records
- File tax returns in a timely manner
- Pay the due amount promptly
Taking these steps can help you avoid penalties such as the failure to pay penalty and the failure to file penalty, both of which can accrue significant interest charges over time on your bank account.
Tax attorneys can help in the following ways:
- Negotiating offers in compromise
- Eliminating penalties
- Setting up payment plans
- Protecting assets from collection actions
Their guidance and experience can help you attain the best possible outcome and keep your financial situation on track.
Additional Tax Services Offered by Tax Attorneys
Tax attorneys offer a wide array of additional tax services beyond resolving IRS tax problems. In the realm of estate planning and historical bookkeeping, tax attorneys can establish trusts and estates, advise on the tax implications of inheritance, and provide assistance with the legal aspects of asset transfer. We can also review past financial records and transactions to ensure compliance with tax laws and regulations.
For those facing payroll tax issues, tax attorneys can offer the following services:
- Counsel on payroll tax obligations
- Resolve existing problems
- Represent clients in communication with the IRS
- Negotiate settlements
- Provide expert representation
- Assist with income tax audits related to payroll tax issues.
Additionally, tax attorneys can help clients with:
- Understanding self-employment taxes
- Ensuring compliance with tax regulations
- Representing clients before the IRS for audits, collections, and appeals related to self-employment taxes.
How Damiens Law Firm, PLLC Can Help You
At Damiens Law Firm, PLLC, our tax attorneys are well-equipped to provide assistance with a range of tax issues, such as tax debt, federal tax liens, and high tax liability. With a team of experienced tax professionals, we offer a variety of tax services, including estate planning, historical bookkeeping, payroll tax issues, self-employment taxes, and researching available tax credits.
If you are accused of a tax crime, Damiens Law Firm, PLLC can provide comprehensive guidance and legal representation for clients facing accusations of violating tax laws, including tax fraud, tax evasion, and delinquent tax returns.
Don’t let tax issues overwhelm you; contact Damiens Law Firm, PLLC at (601) 957-9672 for professional assistance and support in navigating the complexities of the tax system.
Frequently Asked Questions
How do I contact the IRS about tax issues?
To contact the IRS about tax issues, call their toll-free assistance line at 1-800-829-1040 (for individuals) or 1-800-829-4933 (for businesses). You can also call 1-800-829-3676 for tax forms and instructions. For general questions, you can call 1-800-829-1040 any time of day.
How do you resolve a dispute with the IRS?
To resolve a dispute with the IRS, you can contact the Taxpayer Advocate Service (TAS) for free help, the Low-Income Taxpayer Clinics (LITCs) to represent you, or the IRS Office of Appeals for independent resolution. If those attempts fail, you must complete Form 12009 and request an informal conference with a supervisor, followed by forwarding your case to the Appeals Office.
When should I hire a tax attorney?
If you are facing tax fraud accusations, delinquent tax returns, unpaid taxes, or unfair tax liens, it is advisable to hire a tax attorney for professional help.
How can I avoid tax penalties?
To avoid tax penalties, stay up to date on tax regulations, keep accurate records, file returns promptly and make sure to pay the amount due on time.
What tax settlement solutions are available?
Tax settlement solutions such as Installment Agreements and Offers in Compromise are available to help taxpayers settle their debt for a reduced amount.
