Do you owe back taxes to the IRS? If so, you’re not alone. It’s estimated that over 13 million people have an open collections case with the Internal Revenue Service. Thankfully, this stressful situation does not need to mean the end of your financial health. Tax resolution is an avenue the IRS makes available to individuals who approach their case in the correct manner.
Like most things having to do with the tax code and the law, there is no “one size fits all” way to approach tax resolution. If it were as easy as filling out a form, stamping an envelope, and crossing your fingers, everyone would wipe out their tax debt in an instant. In reality, the IRS wants to see that you’ve approached your tax resolution efforts with fairness and through an appropriate channel.
Tax resolution companies who do not employ actual attorneys are some of the most questionable businesses around right now. You may have seen advertisements from companies making big promises about what they can do for your tax debt, despite not having a single tax resolution lawyer on staff. These companies will gladly take your money and employ a boiler plate, impersonal, uninformed approach to your case.
At Abajian Law, the lawyers who work on your case are all licensed attorneys in good standing with the Bar; not only that, they all have LL.M. degrees specifically in tax law. A tax resolution lawyer’s nuanced understanding of tax law (and the best way to handle your specific circumstances) can mean the difference between tax resolution and tax frustration. Only an attorney can offer expert legal advice, discretion, and trusted guidance when it comes to your personal finances.
While there are several methods to obtain tax resolution, only a qualified tax attorney who has reviewed the specifics of your case will be able to advise you on the best course of action. Therefore, you should never take information from a blog and apply it to your own situation without consulting a legal professional first. However, just to give you an idea, there are two main avenues that are the best starting point for most individuals when it comes to tax resolution: offer in compromise and payment plans.
An offer in compromise is basically what it sounds like: you approach the IRS stating that you cannot pay the amount owed, but you are able to pay a smaller portion, all at once, in good faith. There are several caveats that determine whether the IRS will accept your offer in compromise. It is not simply guaranteed that they will accept, which is why it is so valuable to have an experienced tax attorney help you with the offer in compromise process in order to get the best chance of acceptance.
A payment plan, on the other hand, is exactly what it sounds like. You agree to pay back the amount owed, but in small monthly installments that make the payment more manageable given your financial picture. Just like the offer in compromise, there is similarly no guarantee that the IRS will accept a payment plan setup for your amount owed. This, too, depends on your financial picture and the way you present your case to the government.
If you are interested in achieving tax resolution and putting the stress of your tax debt behind you, contact the team at Abajian law for a no-obligation consultation regarding the options that make sense for your specific situation.