Owing back taxes to the Internal Revenue Service is something you never want to face. You find yourself not picking up the phone, leaving official letters unopened, and over time the weight you carry only seems to get heavier.
The first thing to know is you’re not alone. Getting behind on taxes happens to millions of Americans every year. Life is messy, things happen, the economy booms and busts. Everyone who gets behind on their IRS taxes has a legitimate reason.
However, you don’t have to live with the burden of an unpaid IRS tax liability. No matter what your circumstances may be, there is a solution that can get you back on track and living without the weight of an unpaid liability pulling you down every day.
The second thing to know is that ignoring the problem always makes it worse. However bad it feels today, it will only get worse as time passes. The IRS will not give up its efforts to collect. They will only get more aggressive. Contacting the IRS to find a solution will not make it worse – it’s the first step to getting back to life as it should be.
Whether or not you want to face the IRS on your own is another question. You certainly can navigate all of the different programs the IRS offers and even attempt to negotiate with them. But most people facing the IRS alone is a daunting task. Mostly because the IRS doesn’t make navigating the system easy, and establishing successful communication can take hours, days, or weeks.
If you want to live life as normal as possible while settling your debts with the IRS, working with an IRS lawyer or professional tax resolution company is your best option. They act as your proxy and deal with the IRS on your behalf. They find the best solution for your unique situation, make a plan that has a minimal impact on your day-to-day expenses, and ensure the IRS stops its collection efforts.
In this article, we look at everything an IRS Lawyer, tax attorney, or tax relief expert can do on your behalf.
What Do Tax Attorneys Do?
IRS tax attorneys handle a wide range of legal issues related to the tax code. they understand the nuances of the federal tax code and have in-depth knowledge of the tax code for states as well depending on their experience. A good IRS tax lawyer will be able to help with the following issues:
1. Audit Representation
If you receive a straightforward tax audit notice, in many cases it’s something you can take care of yourself with minimal effort. However, if you’re concerned that an audit may result in more complex issues like tax fraud, hiring an experienced tax lawyer is a good approach to handling your tax problems.
2. Criminal Defense
If you’re facing a tax fraud allegation or criminal tax charge don’t hesitate to hire a tax law firm. Your IRS attorney will build your case in your defense and represent you in tax court if necessary.
3. Delinquent Tax Returns
Filing overdue tax returns allow you to get your account current with the IRS and take advantage of its many tax debt programs. Filing late will bring interest fees and penalties, but tax lawyers can help you find ways to get current without draining your bank accounts.
4. Installment Agreements
When you can’t pay your tax debt all at once, an installment agreement is the next best option for most taxpayers and businesses. Payment plans are a comfortable way to take care of your tax liabilities and get your IRS tax debt cleared. A tax law office can help you set up your installment plans with the IRS.
5. Offers in Compromise
When you have no way to pay your tax debt, an offer in compromise can allow you to settle for less than what you owe. A tax attorney familiar with federal tax laws can work with you to develop a reasonable offer and negotiate the terms with the IRS on your behalf.
6. Penalty Abatement
Penalties can drive up your tax liability significantly, and make it all the more difficult to clear your tax debt. A tax attorney can determine whether you qualify for penalty relief and help you eliminate fees.
7. Tax Levy Release
When the IRS claims your property or your accounts via tax levies, you have little time to waste. A tax attorney may be able to remove the levy by proving economic hardship or establishing an installment agreement.
8. Tax Lien Release
When the IRS places IRS tax liens against your property, selling assets like your car or your house is nearly impossible. A tax law expert will work with the IRS to release its lien on your property and find a better solution.
9. Wage Garnishment Removal
Once the IRS threatens to start collecting your tax debt directly from your paycheck it’s time to take action. A tax professional can make a case to stop wage garnishments and draft a plan to take care of your tax issues while keeping your paycheck.
How Can an IRS Tax Lawyer Help You?
A tax lawyer can help you before you have a tax problem, help you avoid tax litigation, help prepare your tax return, solve payroll tax issues, handle tax audits, and a lot more.
1. Tax Case Research
Tax lawyers are trained to investigate IRS cases to identify problems and determine solutions. They know which documents to look at, where to find the problems, and how to respond to IRS notices.
2. Communicate on Your Behalf
Most taxpayers have a difficult time communicating with the IRS. It can be confusing and frustrating. When you sign Form 2848 you allow a tax lawyer to represent you before the IRS, so you can leave the communication to the expert. Your tax relief representative knows how to communicate with the IRS effectively, so you know you’re getting the best possible outcome.
3. Negotiate Tax Settlements
Your tax lawyer will help you negotiate complex resolutions like installment plans, offers in compromise, wage garnishment removal, tax levy or lien release, and penalty abatement. All of these issues require an in-depth knowledge of the tax code.
4. Tax Court Representation
Although most tax cases are resolved outside the courtroom if you’re facing tax evasion charges, or a tax fraud case, you’ll need a tax lawyer to represent you to give you the best odds of a favorable outcome.
The Pros and Cons of Working with a Tax Lawyer
Before you hire a tax firm you should be aware of what you get and don’t get. On the whole working with a tax lawyer will be a plus, especially if you have tax disputes, tax appeals, or are dealing with a tax evasion charge.
Tax Attorney Pros
1. IRS Lawyers Resolve Complex Tax Issues
When you’re navigating a serious tax problem having a tax professional by your side can save you thousands of dollars and jail time. Tax attorneys specialize in resolving high-level tax problems like wage garnishments, tax lien and levies, and tax fraud. They will investigate your case closely and make sure you get the most favorable outcome possible.
2. Save Taxpayers Pennies on the Dollar
You’ve probably heard this expression thrown around a lot while looking for tax help. It refers to cases where taxpayers can’t afford to pay back taxes for the foreseeable future. In these cases, a tax lawyer can negotiate an offer in compromise allowing you to settle for less than your total balance. The IRS only grants this to qualified individuals, but if you qualify you should definitely take advantage.
3. Guide You Through Complicated Audits
Receiving an audit notice from the IRS is something we all fear. There are different levels of audits, but understanding how to respond and take the next steps can be confusing. Tax attorneys know how to assess all types of audits, negotiate terms, and walk you through the process with minimal stress.
Tax Attorney Cons
1. Tax Attorneys Don’t’ Prepare Your Taxes
If you’re looking for a tax professional to help prepare your payroll taxes or personal tax returns you won’t find that service with tax lawyers. Some tax law firms will employ IRS-enrolled agents who can help with tax preparation. The best solution is to work with a tax resolution company. They can represent you and help with your tax debt and prepare your taxes.
2. Tax Attorneys Cost More than Tax Resolution Companies
Lawyers and attorneys always charge more no matter where they operate or the service they offer. Most attorneys charge by the hour while tax resolution companies will offer a base or set price after evaluating your case. In almost every case outside of court representation working with a tax resolution expert is the better option compared to hiring a tax attorney. You get the same expert service, without the high hourly rates.
How Much Does an IRS Tax Attorney Cost?
The cost of hiring a tax lawyer will vary depending on the complexity of the case and time. It can be as low as $500 to $15,000 and more. The following factors will influence the cost.
1. IRS Case Type
Some cases are simple, while others require much more investigation. For example, delinquent filing cases will cost much less than a complex audit defense.
2. Resolution Type
Tax lawyers can help out with a variety of different resolutions, depending on the qualifications of the client. For example, preparing an installment agreement will cost less than submitting an offer in compromise.
3. Case Length
While tax attorneys can resolve some cases in a matter of days or weeks, others may take months or over a year. Longer cases will cost more as most lawyers charge by the hour.
4. Fee Structure
All tax firms operate under different fee structures. Some will charge by the hour, while some may choose to charge a flat fee. Tax firms may also charge separately for the investigation and resolution portions of a case. Some law firms charge retainer fees. Make sure you ask plenty of questions about fee structure before you start working with tax lawyers.
How Much Does an IRS Tax Attorney Cost?
The cost of hiring a tax lawyer will vary depending on the complexity of the case and time. It can be as low as $500 to $15,000 and more. The following factors will influence the cost.
1. IRS Case Type
Some cases are simple, while others require much more investigation. For example, delinquent filing cases will cost much less than a complex audit defense.
2. Resolution Type
Tax lawyers can help out with a variety of different resolutions, depending on the qualifications of the client. For example, preparing an installment agreement will cost less than submitting an offer in compromise.
3. Case Length
While tax attorneys can resolve some cases in a matter of days or weeks, others may take months or over a year. Longer cases will cost more as most lawyers charge by the hour.
4. Fee Structure
All tax firms operate under different fee structures. Some will charge by the hour, while some may choose to charge a flat fee. Tax firms may also charge separately for the investigation and resolution portions of a case. Some law firms charge retainer fees. Make sure you ask plenty of questions about fee structure before you start working with tax lawyers.
Access Your Tax Debt Situation
Step one when working with a tax debt relief company is to schedule a consultation. During the consultation, you’ll have the chance to explain your particular tax problem, and your tax professional will have the opportunity to review your paperwork and assess your situation.
The free consultation helps you see if you’d benefit from the services offered by the tax resolution firm. It also gives the tax consultant the chance to get to know your situation on a deeper level and to start the process of designing a solution for your problem.
Design the Tax Resolution Plan
The next step is to create a plan that helps you work with the IRS and come to an agreement that satisfies everyone. If you’re undergoing an audit, your tax specialist will examine your documents to make sure they understand your situation so they can prepare the best defense possible for your case.
In the case of negotiating with the IRS or avoiding wage garnishment, your tax resolution expert can put together a repayment plan to show the IRS that you can pay — or can’t pay, in some cases.
Communicate on Your Behalf
The Taxpayer Bill of Rights grants you the right to representation. Your tax debt relief expert can be the go-between or mediator between you and the IRS. Working with a tax resolution firm means you never have to worry about dealing with the IRS on your own. Having a professional represent you not only reduces your stress but increases the likelihood of an outcome in your favor.
How to Apply for Tax Relief
You can apply for tax relief on your own, but many people prefer to work with a tax professional to ensure they are going through the process correctly and to improve their chances of getting the relief they need. If you decide to get help for your tax situation, be aware that every case is different and you must meet specific criteria to qualify for certain tax relief programs.
