June 17, 2019

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IRS Collections

Tax Law Firms

If you or your business owes the IRS money, or if they agency believes that you do, you have a limited amount of time to take legal action to protect your assets and income. If you owe money that you cannot pay, you have options. An experienced tax attorney can help you reach an agreement with the IRS in the form of an Offer in Compromise (OIC), which can resolve your debt while allowing you to pay less than you owe, or other arrangements if you do not qualify for an OIC.

Swift Consequences

Once the IRS issues a Final Notice of Intent to Levy, you only have 30 days before the agency can seize your assets. A tax attorney can take action to temporarily freeze collection activity, giving you time to reach a payment agreement.

Individuals who sit back and do nothing, face seizure of:

  • Checking accounts
  • Savings accounts
  • Stocks
  • Bonds
  • Vehicles
  • Home
  • Other property
  • Wages

Businesses face similar consequences including seizure of:

  • Property
  • Equipment
  • Bank accounts
  • Accounts receivable

How a Tax Attorney Can Help

An experienced tax attorney will start by securing a hold on the collections process. You will have to sign a Power of Attorney giving the IRS permission to communicate with your tax attorney about your account. Then your attorney can request the hold and request the transcripts for the IRS. The hold gives your attorney time to investigate and negotiate.

The investigation your attorney conducts will look for several issues including:

  • Do you need to file returns?
  • Do you need to correct returns you have filed?
  • Has the statute of limitations run out on any of the debt?
  • Are you eligible for innocent spouse relief?
  • Are there penalties that could be reduced?

An experienced tax attorney may find that you do not owe what the IRS believes you owe. If you failed to file returns and the IRS filed for you, the substitute returns will reflect the highest possible tax liability. Filing your delinquent returns will correct the amount. Similarly, you may have filled out your returns incorrectly, showing that you owe more than you really do, and that can also be corrected.

Once your true tax liability is determined, your attorney may be able to reduce your penalties. If you owe money, you will have to resolve the debt, but there are options for reducing the amount your will have to pay and for creating a payment plan that allows you to make reasonable payments over time without incurring further penalties.

To connect with an experienced lawyer in your area, please search our network of experienced tax law firms today.