The Internal Revenue Service (IRS) can seem like a giant monster with uncontrollable issues for a person who may have experienced any kind of tax issues. The simple truth is that a tax problem does not go away. You cannot owe the IRS money and think that they will forget or forgive. In fact, the IRS does not show mercy. If you owe money, you must pay. And you will pay with interest and penalties attached.
Penalties that can Accompany Owing Tax Debts
The IRS is not interested in why you owe back taxes. They do not care that it was an oversight, a typo, or a mathematical error. They do not care that you had lost your job at the time, lost a loved one or were too sick to work and pay. They are not interested in what you thought was correct or how you figured your deductions incorrectly. Their focus is on collecting the money owed to them from your back taxes with high financial penalties attached.
The IRS will deploy all means necessary to collect back taxes including:
• Property seizures
• Garnishing wages
• Personal asset seizures
The IRS is exempt from all state laws that prevent garnishment of wages of the main wage earner in a family. They are also exempt from any state imposed garnishment percentages. Sadly, the IRS has the power to press charges against an individual if they cannot collect their taxes which will result in imprisonment.
How to Handle and Prepare for an IRS Tax Audit
You do not have to face the IRS alone if you receive an audit notification. In fact, it is not even recommended that you face the IRS alone. An audit is set up for the IRS to win, regardless. If you are facing an audit, you should seek the services of a tax attorney.
Unlike a person going into an audit unsure of what is going to happen, an experienced tax attorney knows exactly what to expect and will be prepared.
Hiring an Experienced Company to Regain Financial Freedom
A tax attorney can review the issue and provide you with an honest and competent evaluation of the situation. They can have your tax paperwork reviewed for errors and omissions and determine if you do owe the IRS money. Once an accurate debt or lack of debt to the IRS is established, the attorney will work as a representative for you with the IRS.
They can request an Offer of Compromise on your behalf. An Offer of Compromise is a legal document that admits that there is a debt owed to the IRS but that the full amount requested by the IRS is not what is owed. The compromise makes an offer of what is believed to be the actual debt of the person and requests that the IRS accepts this amount as the debt owed. If accepted, the IRS will request this amount due and the case will be settled when paid.
If the amount owed to the IRS is incorrect, an experienced tax attorney can legally counsel and represent you to have the debt removed.
Thankfully, most debts with the IRS can be easily resolved with the assistance of a tax attorney. With the IRS agents unable to intimidate the attorney, the lawyer is able to negotiate on your behalf and come to a solution that makes everyone happy.
Legal writer and researcher Lisa Coleman shares the kind of penalties that can accompany owing the IRS financially. She encourages a person facing IRS tax debt to employ the services of a professional company, such as Instant Tax Solutions, which has experienced staff, including a tax attorney, equipped to counsel and legally represent a client with tax debt problems, helping them get back on the road to financial freedom.