Tax debt refers to any taxes you owe the taxing authority after the filing deadline. Each year, millions of Americans owe money to the IRS due to unresolved financial liabilities as a result of underreporting or underpaying their taxes. Whether the issue was a result of a mistake or an intentional action, there are several ways to approach the issue if you are a taxpayer who is heavily burdened by tax debt.
Tax Debt Resolution Options
Ignoring a tax debt can lead to serious consequences, like bank levies and tax liens. If you owe back taxes to the IRS or NCDOR, your tax debt resolution or relief could involve installment agreements, innocent spouse relief, payment plans, offers in compromise (OIC), non-collectible status, and more. While tax-related debts are often dischargeable only in unique circumstances, an experienced tax debt attorney will help you solve your tax debt once and for all by exhausting every possible option available.
Should You Consider Working with a Tax Debt Attorney?
There are several reasons to seriously consider pursuing tax debt relief. If any of the following describes your situation, you should consult with a tax debt attorney:
- You are facing an audit by the Internal Revenue Service.
- Your tax returns to date have not all been filed, including federal and state returns.
- You owe back taxes from previous years.
- You are facing a tax debt that you know you cannot afford.
- You owe taxes that you cannot afford to pay to the IRS or the State.
- You have forgotten to file tax returns or have done something that is out of compliance with the Internal Revenue Code (U.S. Tax Code) or State Tax Code.
Simply ignoring a letter from the IRS or NCDOR or ignoring past due balances to state or federal taxing authorities will only make your tax situation worse. Acting as quickly as possible is essential to avoid consequences that may result from the taxing authority initiating collections and other aggressive collection efforts, such as wage levies, bank account levies, wage garnishments, asset seizures, and levies on social security benefits.
How Can a Tax Lawyer Help with Tax Debt?
In most cases, tax debt issues arise for taxpayers because they are uninformed about the rigid deadlines related to IRS notices. Involving an experienced tax debt lawyer as early in the process as possible may leave more options at your disposal. As time goes by, the collection actions by the tax agency become more aggressive.
An experienced tax attorney can protect your rights and interests throughout the process by negotiating on your behalf and exploring approaches that you may have been unaware of otherwise. A tax debt lawyer can:
- Help determine eligibility for tax relief programs
- Manage IRS and NCDOR tax forms and other documentation
- Prepare you for key interviews and hearings
- Negotiate with the IRS and NCDOR on your behalf
- Ensure your rights are protected when dealing with debt collection companies
- Arrange a payment plan with the IRS and NCDOR to alleviate worry of levies and property seizure
- Make a settlement with the federal government (an OIC) to enable you to pay substantially less than you owe
Contact Dysart Willis Today
The reasons you might find yourself in tax debt are broad, but it is always a stressful situation. FInancial relief may be within reach, and an experienced tax debt attorney can help mitigate losses and penalties. To consult with an experienced tax attorney before you proceed with your tax debt issue, contact Dysart Willis today.