3 Ways to Avail IRS Tax Debt Relief

Yes, taxes may feel like a burden that you cannot get rid of, but you have to pay them by hook or by crook or face strict collection actions by the IRS. To ease the burden of struggling taxpayers, the IRS offers debt forgiveness programs with certain conditions. These IRS debt relief programs do not completely remove your tax obligations from your account but help reduce your burden. In a financial strain, even the reduction of the tax debt can do a lot of wonders. Here are the 3 ways you can avail IRS tax debt relief and reduce your tax burden. 

1. Offer in Compromise 

When you offer to pay a part of the taxes you owe and the IRS agrees, it is called an Offer in Compromise. Keep in mind, an offer in compromise is not available for everyone. It is only for those in financial hardship. To check eligibility for individual taxpayers, the IRS provides a pre-qualifier tool. The basic eligibility criteria entail requirements like you:

• have filed all your previous returns 

• have no prior history of bankruptcy 

• have a valid extension for the due year

The IRS will check your ability to pay, income, expenses, and asset value and then approve a request for Offer in Compromise. 

2. Installment Agreements 

A taxpayer, who is unable to pay the taxes in lump sum by the deadline, can pay the tax debt in installments. IRS form 9465 is used for requesting an installment agreement, but to be eligible for installments:

• You should have filed all the previous returns

• You have to prove that you are unable to pay the taxes within the deadline by showing the savings and brokerage accounts.

• You have to prove that you are unable to take loans and other refinancing options.

• You lack the equity to pay off your tax debts.

The IRS offers long and short term payment plans and various mediums to pay the due depending on the tax bill. 

3. Currently Not Collectible Status

There are times when a taxpayer is not able to pay taxes due to financial instability and other reasons. In such situations, the taxpayers can apply for the ‘Currently not collectible status’. Under this request, the IRS extends the time limit of the tax repayment by placing the taxpayer’s account under ‘currently not collectible’ status. The IRS agrees to this debt relief request only when paying taxes is causing financial hardship to the taxpayer and doing so would make them unable to fulfill even basic needs. The taxpayers need to prove their likely financial strain by providing relevant documentary proof. To check whether you are eligible for this IRS debt relief option and to draw up a convincing case, consult a leading tax attorney. 

Summary 

Paying taxes is not only a civic responsibility but also a legal requirement. If you are experiencing difficulty in meeting your tax obligations, you must consider IRS debt relief options. Dallas residents looking to check their eligibility or seeking legal advice and help on Offer in compromise, penalty abatement, and any other debt relief options, can consult a leading tax attorney in Dallas. An experienced debt attorney will help in solving your tax debt problems by advising you on the best ways to get your tax debt burden off your head.

What is an IRS Tax Investigation?

When a taxpayer is suspected of deliberately avoiding paying tax or reporting taxable income, the IRS can trigger an audit. In some cases, it can go straight to launching an investigation to get to the bottom of the issue. This is a situation that many taxpayers in Dallas find themselves faced with every year. If you are the subject of an IRS tax investigation, it is important to seek IRS tax problem resolution from a reputable Dallas tax attorney. This will help you present a sound defense and mitigate any potential fallout. Let take a look at some basic information about IRS tax investigations. 

IRS Tax Investigation

It is very easy to rouse the suspicion of the IRS and trigger an audit that leads to an investigation or an investigation from the outset. The scary thing is that you may not even be aware that the government agency is focused on you. Issues such as a simple oversight, mistake, unreported income, false statements, tax fraud, being accused of tax evasion, malpractice by your accountant are enough to attract an IRS tax investigation. 

IRS Tax Audit

As mentioned before, an audit can sometimes lead to a full-blown IRS investigation. There are different types of audits that are conducted in a variety of ways. You will be required to support information contained in your tax returns by providing documents and records. IRS agents may come to you, ask you to visit a field office, or require everything to be done through correspondence. If any ‘badges of fraud’ are detected, the matter may be referred to the criminal investigation unit. 

Last Word

It is always advisable to file and pay your taxes in time to avoid IRS tax problems. You must be honest in all your dealings and never delay hiring a seasoned Dallas tax attorney whenever you face tax issues. You can find Dallas tax attorneys when you search online for a tax resolution attorney. Make sure to do some background checks before settling for any particular attorney for IRS tax help in Dallas. You may need to find a dual license tax attorney and CPA if you are the subject of an IRS tax investigation. As mentioned before, time is of the essence when looking for IRS tax problems resolution.

3 IRS Debt Relief Plans You Should Know

Having tax debt in the United States is problematic. The IRS leaves no stone unturned in collecting taxes, which can be fearsome, however, this rigidity is just one side of the story, the IRS also provides debt relief provisions (primarily under the Fresh Start Initiative/FSI) to encourage maximum tax deposits. These debt relief plans are approved only after taxpayers meet a stringent set of eligibility criteria, which is why it is advisable to consult a tax attorney in Dallas that can help you get the much-needed concession. But before that, it is crucial to understand the different debt relief plans available. That said, continue reading as we discuss various IRS debt relief plans that you should know.

1. Installment Agreement

An IRS tax installment agreement is a time-based concession that allows taxpayers to pay their dues over a period instead of a lump sum amount. The duration of a payment agreement varies depending on the tax due, it is arguably the most common FSI provision. Requesting an installment agreement requires the taxpayer(s) to comply with the eligibility criteria specified by the IRS, which can be overwhelming to understand. This is where it is beneficial to hire a debt attorney.

2. Offer in Compromise (OIC)

An OIC is a monetary concession, under the FSI, offered by the IRS to the taxpayers allowing them to settle the outstanding amount for less than what is owed. But, don’t be fooled, the IRS does not just let anyone walk off without paying the total amount, the IRS approves requests for OIC only in cases where the taxpayer is in no position to repay the full amount and agrees for a lower monthly payment offer. This requires proof of economic distress and ability to meet other stringent eligibility criteria, requiring an in-depth understanding of the same. This is where a Dallas tax attorney steps in to create a strong application starting from compiling intricate documents to drafting a request for OIC so that your chances of acceptance are more favorable.

3. Currently Non-Collectible Status

The Currently Non-collectible Status is a declaration of stay or hold put on your tax recovery case by the IRS. It is approved in conditions where the IRS judges that you cannot pay your tax dues and living expenses at the same time. This doesn’t affect the purpose of the IRS at all as they have a decade to collect the outstanding amount from the filing date as per the Statute of Limitations and they continue to conduct annual reviews to see whether your situation has changed. Requesting for a non-collectable status involves several intricacies, which is why it is advisable to contact tax attorneys in Dallas Tx to chart the best possible way.

Final Word

Seeking IRS debt forgiveness is all about presenting your case with the right documents at the earliest, however, given the intricacies involved, it is beneficial to hire a tax attorney who has knowledge of all debt relief plans including IRS penalty abatement. A good IRS attorney will not only suggest the best possible plan for you but also help formulate the application request for simplifying the tax repaying process.

Finding Tax Attorneys in Dallas? Here are Some Tips

IRS problems are quite sensitive and need immediate attention. Maybe you have some IRS problems, specific state tax issues, or want to start a business - the best way to avoid all tax-related problems is to consult a tax attorney. There is a good number of tax attorneys in Dallas and nearby areas who have experience handling tax-related difficulties easily, cost-effectively, and efficiently. It is always recommended to hire a qualified tax professional who has genuine solutions to your unique problems. A good tax attorney will have Jury Doctor (J.D.) and a license to practice Law in your state. Some lawyers may also have a Masters in Law Taxation, while others may have certification as public accountants. 

Factors to Consider

You should consider several factors before hiring a tax attorney. Here are a few tips on what to look for and how to find professional tax attorneys in Dallas: 

• Experience is the Key: This is the most significant factor when searching for the best Dallas tax lawyers. You must always priorities attorneys who have proven experience in handling IRS problems and controversies. They have the best understanding of the inner functioning of IRS, daily interactions with the IRS officials, and experience in handling tax issues providing them with unique insights into the various tax complications. Use this experience as an asset

• Perform a Background Check: Spend some time on the internet before making any decision on hiring a tax lawyer. Conduct some background research such as looking up customer reviews on websites such as Yelp as well as business ratings such as with the Better Business Bureau. You may also contact your state bar for a background check in case you do not trust the internet reviews.

• Ask for Credentials: Don’t forget to ask your prospective attorney about their credentials. The tax attorney you hire should be licensed to practice Law by your state’s bar and at least have a Master’s degree in Law. If you consider your case to be a little more complicated, you might also want to look for a Certified Public Accountant. 

• Do Research at Professional Organizations: Public and professional organizations such as the Tax Law Association have lists of registered public attorneys on their websites. This list is very reliable as they do not allow unqualified or soiled professionals to list on their portal. They also provide tools such as directory search to look for a particular law professional.

Conclusion

While gaining some knowledge with regard to filing your taxes and resolving different issues is a plus, it remains essential to find a suitable professional to handle your case. You can never go wrong with seasoned tax attorneys in Dallas.