What is a Federal Tax Lien Notice & What Should You Do If You Receive One?

What is a Federal Tax Lien Notice & What Should You Do If You Receive One?

Ignoring your obligation to pay taxes can lead the federal government to conduct severe legal action against all of your existing assets, current and future income and assets you acquire in the future; this form of punishment is called a federal tax lien.

If you've received a certified letter indicating that the federal government has placed an unwelcome Federal 'tax lien' on your assets, this article can provide insights into what it means and how to remedy the issue.

What is a Federal Tax Lien?

When a taxpayer falls behind on their federal taxes, they are at risk of having an official public notification filed against them. This document is known as a Notice of Federal Tax Lien and can cause serious consequences for the individual's ability to enjoy any financial security.

A federal tax lien is an official document filed with the county recorder’s office (usually where the taxpayer lives or conducts business) and the secretary of state's office (if it’s a corporation or partnership) notifying the general public that a taxpayer has an unpaid federal tax debt.

Lien vs. Levy

For the unaware taxpayer, it is important to understand the difference between liens and levies. People will use them interchangeably, but they are very different. A lien grants the government legal rights over all of your property. This does not mean they are going to sell your property but it does make it difficult for you when the government has an ownership stake in your assets. Especially if you are looking to sell them, like real estate.
Anything you sell, the IRS will receive its cut before you receive anything.

A levy, on the other hand, is the physical seizure of income and assets. The IRS is the only creditor on the planet that can garnish your income and remove money from your bank account without a court order.

This may affect your credit.

The consequences of an IRS filing a Notice of Federal Tax Lien are significant. This lien is public record, and eventually may show up on one's credit report which can severely impact their ability to secure further credit in the future as well as lower their credit score.

The effects on your assets.

A federal tax lien restricts your ability to utilize and monetize any existing or future assets - from real-estate, stock investments, automobiles, etc. This means that the IRS is first in line for proceeds if you were to sell any of your assets, before you receive any cash.

The affects on your business.

Protecting your business from financial troubles is important, and a lien can be especially damaging. It attaches to all of your property — including accounts receivable –which could seriously impact the normal day to day operations of your business, leaving you further in debt than before.

Thinking about filing for bankruptcy?

Although filing for bankruptcy may offer relief from debt, it's important to note that your tax obligations and Notice of Federal Tax Lien still remain in effect. To ensure financial freedom, take steps to address any existing unpaid taxes before planning a successful future.

When a levy is enforced, it can result in the government seizing funds from your bank account or drastically reducing up to 75% of your net pay.

Next Steps

Paying off your tax debt in full is the most effective way to erase a federal lien. Typically the IRS will release the lien within one month of payment. But if you are unable to pay such a large sum, as most people are, at once don't lose hope - this is where a tax resolution specialist can help.

When it comes to the IRS, navigating legal channels on one's own is a risky endeavor. The best course of action for those facing tax issues is to seek out expert, professional help by calling an experienced and qualified tax resolution provider like us. With our expertise right by your side, your chances of achieving a positive outcome improve significantly!

Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem once and for all. 

How to Avoid an Expensive Tax Bill & What to Do If You Receive One

How to Avoid an Expensive Tax Bill… & What to Do If You Receive One

Tax season can be a time of great anticipation for millions of Americans with dreams of a nice, big, refund check coming soon. Yet this year, many Americans may find themselves surprised and coming up short on their refunds.

Many taxpayers have been shocked to find that this year, instead of a big tax refund check arriving in the mail, they are being saddled with an unexpected bill from Uncle Sam. The combination of recent tax law changes and updated employer withholding tables has left individuals scrambling to figure out how to pay for their new IRS obligations due at filing time.

If you're worried about a looming tax bill, never fear: there are measures you can take to ensure that your taxes don't unexpectedly balloon. From budgeting tips to what do when the worst happens, these strategies will have your wallet breathing easy throughout the year!

The Earlier the Better!

Ignoring an IRS debt could ultimately result in serious consequences. It is in your best interest to be aware of any outstanding amount as soon as possible, providing time for tax planning and sourcing the necessary funds

Don't let late payments rack up and cause costly penalties and interest. Be proactive about filing your taxes so you'll have a good idea of what will be owed, if anything, that is needed to be paid on time.

Pay Attention to Your Paychecks

With the recent changes in tax law, your paychecks may have grown more generous - but don't get too excited! They could mean less of a refund or an unexpected bill when you file. Make sure to stay informed and plan ahead so unpleasant surprises won't come back to haunt you this filing season.

To prepare for tax season, it's important to monitor your paychecks and ensure that the right amount is withheld. If you see a decrease in federal taxes being taken out of each paycheck, adjust this with your employer immediately - even though it may mean taking home less every month. Doing so can help protect you from federal and state tax debts and penalties later!

Run Your Numbers Before

With just your final paycheck from last year and a few additional details, you can gain insight into what kind of tax refund or balance due to expect come filing season. It pays to take the time for preparation now so there are no unpleasant surprises later! However, please note that you should never use your 2022 final paycheck to prepare your return. You’ll need the actual W-2 from your employer in order to file a complete and accurate return.

To be prepared for tax season, compile all necessary records of your income, credits and deductions to estimate what you owe. Leverage the power of a reliable tax preparation software or use an everyday calculator with those numbers in hand to better understand your financial situation.

Know You Have Back Taxes or Will Owe A Lot?

Ignoring a tax bill isn't an option; the IRS will always come knocking. Settling it quickly can save you from further financial trouble, so don't delay. Your taxes may burden your wallet now, but they'll take hefty chunks out of your future if left unresolved!

Dealing with the IRS can be a daunting experience for many taxpayers. Even getting the IRS on the phone these days is nearly impossible. Without proper guidance, and expert help, attempting to negotiate your own tax problem is like going to court without a lawyer - not a wise move!

Struggling with tax burdens from the IRS or State? Our experienced team knows the IRS’s “ins and outs”, knows how to navigate the IRS maze and is here to assist you in finding a resolution that works best for your unique situation. Take advantage of our knowledge and expertise by booking an appointment with us today - take control of your taxes, and your life, before they become unmanageable!

What to Do if You Owe Back Taxes

What to Do if You Owe Back Taxes

Paying taxes is a fact of life, but when the amount is excessive, you may not have the funds to pay in full. Making a mistake on your taxes can be costly as well, and if you plug in the wrong numbers, the IRS will surely come calling.

Whether you owe money to the IRS due to an innocent oversight, a lack of funds, or something else, ignoring the problem will not make it go away.
Once you owe money to the IRS, the clock is ticking, and all the while penalties and compounded interest will be piling up. So what should you do if you owe back taxes? Here are some critical steps to take.

Assess the Situation

Until you know how deep the hole is, you will not be able to start digging your way out. Before you do anything else, you should assess the situation, going through your old tax returns, reviewing communications from the IRS, and adding up what you owe the tax agency.

Once you have assessed the situation, you will be in a better position to make concrete plans. If you owe a lot of money, you may not be able to pay it off all at once, but with the help of a tax relief professional, you may be able to come up with a suitable repayment plan or you may be able to settle for less than you owe.

Review Your Budget

Owing money to the IRS is no fun, but you will have to resolve this one way or another. Hopefully, you can work out a more favorable payment plan with the IRS, one that might allow you to pay a reduced amount, but that will depend on your income, your allowable expenses, and your assets, if any.

It is important to review your monthly household budget carefully if you owe back taxes to the IRS. Every dollar you can pay back is one less dollar you will owe interest on, so think about where you can cut back and how you might be able to free up some cash.

Talk to a Tax-Relief Expert

The bad news is that you owe back taxes to the IRS. The good news is you may be able to settle the entire amount, including penalties and interest, for a fraction of what’s owed through the IRS’s offer in compromise program.

If you qualify for one of those programs, you may be able to settle your debt for less than you owe, but this is not something to tackle on your own. Work with a tax-relief expert, both to identify the proper programs and to make negotiating with the tax agency easier and more effective.

You can use the budget you reviewed earlier to identify sources of income and resources you have access to. Once that information is presented, the tax-relief expert can help you find a suitable tax compromise plan that just might save you a lot of money.

Take Care of the Problem sooner rather than later

Time is of the essence when you owe money to the IRS. Once those back taxes are assessed, the clock is ticking, and every day that passes will mean higher penalties, and compounding interest.

If you want to put your tax debt behind you once and for all, you will want to act fast. The sooner you start working on your tax resolution plan, the sooner you can take your financial life back.

To help ease the stress from your situation, we offer a free, no-obligation consultation with one of our tax resolution experts. You don't have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today by clicking here.

Filing Taxes When You Owe Money What to Do and What You Need to Know

Filing Taxes When You Owe Money: What to Do and What You Need to Know

The tax-filing deadline will be here before you know it and pretty soon, you’ll be gathering up your receipts and plugging in numbers. I know you’re hoping for good news, and praying for a big refund in the process.

If all goes well you won’t owe anything and you might even be getting back a nice refund. But, what should you do if you owe money? If you know you owe money to the IRS, you might be tempted to not file a return, but that is the worst thing you can do!

If you fail to file on time, the IRS will come after you until you do. Worse yet, the tax agency can assess up to 25% just in late filing penalties. Plus, interest will start piling up right away. Instead of not filing, here are the steps you should take if you owe money to the IRS.

Seek Out Tax Deductions You Can Still Claim

If you find that you owe taxes, all might not be lost. As long as the April 15th tax-filing deadline has not yet passed, you can still add money to an IRA, lowering your taxable income in the process. As long as you meet the income guidelines for a deductible IRA, this step alone could lower the amount you owe or even entitle you to a refund.

Pay As Much As You Can As Soon as You Can

Speaking of paying up, it is important to pay as much as you can as soon as you can. Even if you file for an extension, the clock will still be ticking on any required payments, and the penalties and interest can add up pretty quickly.

If you know you owe money to the IRS, paying it off should be your number one priority. That might mean squeezing your dollars extra hard or trimming your budget to the bone, but it beats paying penalties and high interest to the IRS.

Seek Professional Tax Help and Guidance

Owing money to the IRS is no joke, and dealing with the situation is not something you should try to tackle on your own. If you know you owe money to the IRS and cannot pay the bill in full, it is important to seek professional help and guidance.

A tax resolution expert can guide you through the process, helping you prepare, submit and negotiate a payment plan that works for you and the IRS doesn’t get to manage your monthly cash flow. You also may qualify for an offer in compromise, which settles your case for less than the amount owed, but it’s important to act as quickly as possible - you do not want your tax situation to get worse.

Hopefully, you will find a reason to smile when you file your taxes this year. Hopefully, you will find that you are due a refund, and you can begin making plans for the money that will soon arrive in your bank account.

If not, it is important to know what to do and which steps to take. If you owe money to the IRS, you need professional help and guidance, so call a tax relief expert right away to preserve your rights and your money.

Before you make a decision, let our firm see if we can help. We negotiate with the IRS day-in and day-out. We can potentially settle your tax debt for a lot less than you owe. Call us today to find out. Our tax resolution specialists navigate the IRS maze so you don’t have to. 

What To Do If You Receive a Levy Notice From the IRS

The IRS is not one to mess around with when it comes time for repayment. They are the least forgiving creditor when it comes to collecting what they think is owed to them. The IRS will seize assets including bank accounts and property such as wages or real estate.

Contact a Tax Relief Firm

The IRS is known for tricking people into giving incriminating answers. You should not represent yourself as you may end up in more trouble. Find someone who knows how to help! Finding a reputable tax resolution specialist is your best option since the average tax preparer does not know how to deal with these situations.

The IRS is not your friend. They are the most brutal collection agency on the planet. They exist solely to assess and collect taxes and will do whatever it takes, when they think you have their money. They will also file a notive of federal tax lien. So, if you have a real estate transaction pending any proceeds from the sale of that property, over and above the mortgage amount, will be intercepted by the IRS to go towards your outstanding tax debt. A tax resolution professional will ensure to protect your assets and income from the long arm of the IRS.

Next Steps

The next step you will want to do is gather all of your financial documents and call our firm. We will help put together your case to the IRS and represent you to let them know that a levy will cause hardship for you and your family. We will need documented evidence that the levy will cause financial hardship for you, and if you can prove this, the IRS will release the levy. However, this is just putting a temporary band-aid on the situation, you will still owe the balance to the IRS. Once we get the IRS levy released, it just means the IRS will not garnish your income and will work with you to figure out a game plan to resolve the debt.

Make Payment Arrangements

We can negotiate a payment plan for your back taxes with the IRS. If you are entered into an installment plan, the IRS will release the levy notice.

Get an Offer In Compromise

More often than not, you can get your debt “settled” for less than what you actually owe. Oftentimes, for a lot less. This is what we call an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability via payments, or doing so creates a financial hardship. The IRS will look into your ability to pay, your income, your expenses, and your assets to determine if you qualify for an offer in compromise.

The IRS generally approves an offer in compromise when the amount offered showcases the most they can expect to collect within a reasonable period of time. If you do move forward with an offer in compromise, make sure you hire a tax resolution specialist to help you prepare, submit and negotiate an offer, and be sure to check their qualifications before working with them. In these situations, you want the best of the best to represent you before speaking to the IRS.

The IRS is no place for the faint-hearted. It’s hard enough filing your taxes on time every year, but if you ever find yourself in need of tax resolution services that can help permanently resolve problems with the IRS - reach out to our firm today! We will look into your situation and give you the best options for your specific case. Contact one of our tax resolution specialist today.

Do You Owe Money to the IRS But Can’t Pay? Try This.

When you owe back taxes and can’t afford to make any payments, then it may be time for a special tax status known as currently not collectible. This means that your debt is still considered valid even though there's no chance at recovery right now. When you’re approved for currently not collectible status, the IRS can no longer garnish your wages or seize any property.

Now, don't forget about these debts because the IRS is still looking for payment.

What is Currently Not Collectible Status?

The IRS will place your account in currently not collectible status if you can’t pay both back taxes and reasonable living expenses. You may request this by submitting the proper form with documentation that proves how much income you have left over that is available to make a payment, along with any assets that have been sold recently to cover mounting debts - like homes!

To qualify for the currently not collectible status, you will need to put together a case that you will present to the IRS. Gather copies of your bills, proof of your income (pay stubs, bank statements, alimony, etc), and your investments. It is important to document your inability to pay so that if the IRS determines you cannot afford your necessary expenses, it can grant you status.

When dealing with the IRS, it is best to have a professional in your corner. The IRS can be very intimidating and might ask invasive questions that could land you deeper into trouble than before if you do not know how to answer properly. Remember - they are not friends of yours; their job entails collecting what they believe you owe them so make sure any interaction stays as simple and effective as possible. That is why it is crucial to reach out for help from one our tax resolution specialists.

Temporary Solution

If your status is approved, it does not mean you do not have to file your current and future taxes. This status only applies to your back taxes that the IRS is looking to collect. The currently not collectible status is simply a bandaid to help you get back on your feet. That way you can put yourself in a better position to make a payment in the future. The IRS may review your status every year or two if it looks like there is potential for repayment. You will only be able to keep the status active if you still can not make a payment on your back taxes.

Statute of Limitations

The IRS is an institution that prides itself on being collections-oriented. They will try to collect outstanding taxes for only 10 years from the date they were assessed against you. Once the 10 years is up, the IRS can no longer collect the back taxes. This also applies if you have the currently not collectible status. If you do not have the status, or are in an installment agreement, or have an offer in compromise pending, the IRS can garnish wages and add more penalties to your case making things worse for you as well as your wallet.

In today's tough economic climate, many families are struggling to make ends meet. If you're worried about the IRS garnishing your wages or levying bank accounts, or filing liens against your property for non-payment of taxes you owe - then reaching out may give you some peace of mind.

Our firm will help explain all options available in order to relieve any anxiety associated with these situations because we know how intimidating this can be if nothing has been done before. There is a solution to every IRS problem. Connect with one of our tax resolution specialists to see if you qualify for the currently not collectible status, or any of the other IRS settlement options you may be eligible for and the best next steps for your situation. 

The 2022 Inflation Reduction Act: How Will It Impact You If You Owe Money to the IRS

The 2022 Inflation Reduction Act: How Will It Impact You If You Owe Money to the IRS

Working with the IRS has never been easy, and tax settlement agreements are always complicated affairs. If you are currently working to pay off your tax debt, you may wonder what the recently passed 'Inflation Reduction Act of 2022' has in store for you.

There has been a lot of back and forth about the Inflation Reduction Act and what it means to you. While the details of the agreement are still up in the air, there are a few concrete details you need to know about how this act could impact you as an American citizen. Here are some essential things to consider moving forward.

The "Army" of IRS Agents Are Not All Soldiers

A lot has been said of the supposed army of IRS agents who will soon be walking throughout the streets of America. There are some pundits and politicians who say, "the IRS will be hiring 87,000 armed agents to hunt down innocent taxpayers, relieving them of their hard-earned money in escalating waves of harassment."

The reality behind the army of IRS agents is much different and far less troubling than what you may be hearing. Most of the new hires will be administrative personnel, IT workers bent on upgrading old hardware, customer service representatives to answer the endlessly ringing phones, and so on. That does not mean there will not be new agents on the job, but the scope of the new hires is not a reason to panic, even if you currently owe money to the IRS.

Enforcement Efforts Will Ramp Up

Even though only a portion of those new IRS hires will be "on-the-ground agents," the overall goal of this bill for the IRS is to increase the amount of revenue they are collecting from taxpayers. There is reason to believe that the IRS will be more aggressive with its collection efforts because of the Inflation Reduction Act.

The nature of this bill has raised concerns that the IRS will have an increase in audits for small business owners and regular taxpaying citizens across the United States. Our government claims the IRS's efforts are geared more toward citizens in higher tax brackets; however, you can never be too sure since it does not clearly state that they will not target the "everyday" taxpayer. If you think you owe money to the IRS, this is the time to take it seriously to avoid any extra fees or, worst-case scenario, the IRS freezing any of your bank accounts and garnishing your wages.

If You Have an Agreement in Place Nothing Should Change

The IRS has been increasing its efforts against taxpayers even before passing the 'Inflation Reduction Act of 2022'. If you have been targeted by one of these actions, they are still looking for a suitable settlement with you and will not stop until the settlement is resolved.

Hopefully, you are working with a professional as you work with the IRS since the settlement process can get pretty complicated and working with a tax relief specialist ensures you can get the lowest settlement possible for your specific situation under the law.

If you are still working through the details of a settlement, you could find the IRS will try to drive a harder bargain. This could be especially true if the amount owed is over $10,000. Either way, working with a tax resolution professional is crucial since ignoring the situation will only worsen it. The longer you wait, the more expensive your situation will become.

Professional Tax Relief Guidance is More Important Than Ever

The recent passage of the Inflation Reduction Act has introduced a great deal of uncertainty among taxpayers, especially those who owe money to the IRS. If you are not currently working with a professional and relying on their guidance, seeking outside help will become even more critical.

That is why it is vital to work with a professional, so do yourself and your wallet a favor by connecting with tax resolution specialists like us. We specialize in helping people get their IRS and State tax problems settled and behind them once and for all!

What to Do If You Receive a Collection Letter from the IRS

What to Do If You Receive a Collection Letter from the IRS

You open up the mailbox, expecting the usual mix of bills and catalogs, but what you find is a collection letter from the IRS. It can feel like you are living in a nightmare that you can’t wake up from when you receive a collection letter from the IRS.

Even worse, that letter includes a demand for payment, which is the last thing you need to deal with. So what do you do now since you have received the collection letter from the IRS? The steps you take could make all the difference, and here are some key things to do next.

Take a Deep Breathe

It is easy to panic when you get a notice from the IRS, but getting scared will not get you anywhere. So slow your racing heart (if you can), take a deep breath, and try to calm your nerves.

You will need to think clearly to take on the IRS, and letting your emotions guide you is the last thing you want to do. You will want to have all your brain cells firing, so stop panicking and carefully think through the following steps.

Read the Notice Carefully

Not every notice from the IRS is terrible news, and some are merely a matter of mismatched paperwork or transposed numbers. Those relatively simple matters should not take much to resolve, and they may not even require you to pay any extra money.

Before you do anything else, take the time to read the notice carefully. Find out precisely what the letter says and what the IRS is proposing. Is the IRS claiming you underreported your income for the past year? Are they saying that you took a deduction you were not entitled to? Is the tax agency challenging your interpretation of a statute? The more you know about what the IRS claims, the easier it will be to defend yourself and, ultimately, save you money and headaches.

Pull Out Your Tax Return and Supporting Documents

As previously stated, some tax notices are merely the result of minor disagreements or inconsequential math errors, but others are more serious. Now that you understand what the IRS is stating, you will want to look at what you claimed when filing your tax return.

You can start by pulling out a copy of the tax return in question, making sure to get the right one based on the contents of the collection letter. Hopefully, you have a copy of the return saved on your computer or in your filing cabinet. If not, you can request one from the IRS or have a professional request it for you.

Now that you have your tax return, you can look it over in comparison to the collection letter, looking for any mismatches or erroneous entries. If the return seems good to you, the next step is to get out all the supporting documents.

Those supporting documents may include 1099 forms from your bank and brokerage accounts, W-2 forms from employers, and anything else you included on your tax return. If you took deductions against your income, you will also want to gather those documents and keep them handy.

Take Prompt Action

One thing is certain when it comes to fighting with the IRS - wasted time is wasted money. The interest and penalty clock starts ticking the moment the supposedly erroneous tax return is filed, and every minute you wait could be more money out of your pocket.
If you wait too long the IRS can, without a court order, garnish 90% of your net pay AND clean out your bank account. They can also seize your home and other assets.

The number one thing to do is act fast, which means finding and reviewing the applicable documents immediately. Once you have everything together, you can take the next and arguably the most critical step.

Find a Suitable Professional

Taking on the IRS is not something you want to do alone. You wouldn’t go to court without a lawyer and you certainly don’t want to go up against the IRS without expert representation. Even if you are confident filing your taxes and handling your finances, arguing with the IRS is not a DIY activity.

If you hope to limit the damage and reduce the amount, or the proposed amount they are demanding, you will want a professional in your corner. Working with a tax relief specialist could save you a lot of money in the end, along with countless hours of grief and stress. The sooner you seek professional help with your tax problem, the better, so do yourself a favor and do not wait.

IRS problems can affect all aspects of your life. The stress of not filing or paying your taxes could make you lose sleep. If you are looking for tax relief, we can help!

To help ease the stress from your situation, we offer a free, no-obligation consultation with one of our tax resolution experts. You don't have to worry about confidentiality or cost because the consultation is free with zero gimmicks or commitments. Schedule an appointment with one of our tax resolution specialists today by clicking this link.

Filing Your Taxes When You Know You'll Owe Money To The IRS

Filing Your Taxes When You Know You'll Owe Money to The IRS

As we wrap up the year the last thing most people are thinking about is their taxes. But planning ahead can have a serious impact on your tax bill next year, especially if you know you’ll owe taxes.

In this article, we’ll talk about some steps you must take if you know you’ll be owing taxes to the IRS or state.

Note: If you already have tax troubles or owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

Report All Your Income

One of the biggest reasons people get in trouble with the IRS is their failure to report income. Oftentimes it’s an honest mistake and they simply forget about income they’ve made throughout the year.

Did you take on a consulting gig? Your client might have filed a 1099 reporting your income.

Did your savings and investments earn interest? You’ll likely need to report that income as well.

The stock market has been on a wild ride, and breaking records despite COVID-19. If you sold stock and cashed on on the gains, these gains are reported to the IRS and it means that a lot of Americans might get an unexpected tax bill.

As the year wraps up, it’s wise to take inventory of where your income came from this year so you can stay on top of any tax forms you might get outside of your normal W2.

Run The Numbers Ahead of Time

Some people like surprises but when it comes to taxes, it’s best to avoid them.

You do not have to wait for tax filing season to estimate how much you might owe. Be proactive about consulting with your tax advisor and estimate your tax liability based on how you did for the year.

They’ll be able to suggest tax strategies before the year ends that can save you thousands of dollars on your tax bill.

Set Money Aside to Pay Your Taxes.

Taxes are inevitable. If you know for certain you’ll owe money to the IRS but don’t have the money to pay all of it up front, it’s best to set at least some money aside early so you can pay as much of your tax bill upfront as possible.

The IRS can be more lenient if they see you’re trying to honor your responsibilities and settle your tax debt.

Learn About Tax Relief Options

The IRS has the authority to levy your bank account, garnish your paycheck and seize your assets if it has to, but they also have many tax relief options to help taxpayers in need.

Things like settling your tax debt for a fraction of what you owe, installment plans, penalty abatements, and more, can all be viable tax relief options depending on your situation.

If you owe money to the IRS and can’t afford to pay, you have options. It’s best to reach out to a tax relief firm like ours to learn more about them.

Don’t talk to the IRS, talk to us first.

If you do get hit with a surprise tax bill and lack the money to pay it, you need to settle your tax problem as soon as possible. The IRS wants their money, and they have unbridled authority to get it, so simply avoiding the tax bill will not make it go away, but make it worse. A lot worse.

However, dealing with the IRS is often intimidating for most taxpayers. Talking to the IRS and trying to resolve your own tax problem is like going to court without a lawyer, you’ll most likely get crushed.

A tax resolution firm like ours has years of experience helping taxpayers just like you resolve IRS and State tax problems and negotiating the best deal on your behalf. If you owe the IRS money either for 2019 or prior years, contact us now for a consultation to learn about your options.

The good news is the IRS has several debt settlement options including their Fresh Start Initiative and is generally willing to settle with taxpayers who have been blindsided by a surprise tax bill and can’t pay it off in full.

Hopefully, tax filing season will bring the big fat refund you are expecting, but it is important to be prepared for the unexpected. The new tax bill has unleashed a host of unintended consequences, including smaller refunds and surprise tax bills. By being prepared, you can reduce the pain of a surprise tax bill, so you can get on with the rest of your life.

Do You Need A Tax Attorney If You Owe Back Taxes?

Do You Need A Tax Attorney if You Owe Back Taxes?

If you owe back taxes you might think you need a tax attorney, but that’s not necessarily always the case. Just like hiring a traditional accountant to try to resolve your tax debt might not be the best choice, hiring a tax attorney, who doesn’t specialize in tax resolution might be the same thing.

When you owe the IRS back taxes, it’s best to have the right tax relief firm representing you so you can get the best result possible. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did.

In this article we talk about some of the differences between a tax attorney and someone who specializes in tax relief and IRS negotiation.

Note: If you already have a tax problem and owe more than $10k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

What Do Tax Attorneys Do?

Tax lawyers help businesses and taxpayers with a number of tax related issues such as;

  • Legal issues pertaining to taxes
  • Corporate tax matters
  • Starting up a business and entity formation
  • Taxable estate matters
  • Tax controversy and tax negotiation (only if a tax resolution specialist too)

Tax attorneys work on both the state level and the federal level. Though some tax attorneys might be able to negotiate with the IRS to settle your tax debt, not all tax attorneys specialize in tax controversy and resolution, nor do they have the experience to do so.

The biggest and most important difference between a regular tax attorney and someone who is a tax resolution specialist, (who’s a CPA, Enrolled Agent or attorney), is regular tax attorneys specialize in transactional tax planning. Their work generally includes minimizing taxes on a go-forward basis. A tax resolution specialist is someone who can help resolve your back tax issues on amounts already owed, or will be owing, to the IRS/State.

It’s important to ask what type of tax matters they handle before engaging a tax attorney to solve your tax debt. Most CPAs and Enrolled Agents, who are tax resolution specialists too, can be just as effective as an attorney that has experience in tax resolution matters.

Are tax attorneys accountants?

The short answer is no.

They both work with taxes, yes, and they both have a background education in accounting, but tax attorneys focus on the legalities of taxes, and their goal is to help you understand and navigate legal matters as they relate to taxes.

They do not generally help you to prepare your tax returns unless they specialize in tax relief and specifically help you catch up on years of unfiled tax returns.

Additionally, while tax lawyers are always legally bound by confidentiality policies, accountants and CPAs are not bound by the same rules because they are not all subject under the same laws.

Common Reasons for Hiring a Tax Attorney

Common reasons why people seek out the assistance of these professionals include when:

  • They need legal tax advice for business purposes
  • They are faced with complex or criminal IRS matters.
  • They are dealing with estate-related issues.
  • They need to file a suit against the IRS.

You can consult a tax attorney either before you run into any problems in order to avoid any potential problems in the future, after a problem has already arisen, in which case they will help you to sort things out and get you back on the right track and where you need to be.


It’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional firms.

Our firm specializes in tax problem resolution. We have CPAs, EAs and attorneys who can represent you before the IRS. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.