In 2011, the IRS took the opportunity to show its warm, fuzzy side. Agency officials announced that rules on tax liens would be lightened, relieving taxpayer burdens during a rough economic season. This kinder, gentler IRS, however, will never stop enforcing tax laws. For this reason, an IRS tax attorney may be a client's best weapon for settling burdensome tax debts.
The IRS begins the collection process by sending a bill. After the original bill is sent, a form letter is directed to the taxpayer, with a notice of penalties and interest. The purpose of this letter is to demand payment, not only of the original tax, but also of extra charges which have accrued.
If taxpayers do not pay, the IRS may then file a Notice of Federal Tax Lien. With a lien, the IRS has a legal claim to property, as security, or payment, for debt. A lien is the first major step in the collection process, to try to acquire all of the money owed by the taxpayer.
Another step in the collection process is the tax levy. Taxpayers will be served with a Notice of Levy, after receiving a thirty-day warning. With a levy, the IRS begins to seize assets. Wage garnishment is the most common form of levy, followed by the bank levy, through which money is directly taken from a bank account. Vulnerable assets may also include homes, vehicles, and 401k accounts.
Taxpayers should consult a lawyer before paying the amount owed. The reason for waiting, is that the tax lawyer may be able to help the taxpayer settle for less than is owed to the IRS. With an attorney's help, taxpayers will collect their documentation, file all tax returns, and make arrangements to pay their bills, either by lump sum or installment plan.
A lawyer may also be able to secure an abatement of penalties and interest. Reasons for abatement may include major family problems, illness, or incarceration. Other reasons may include lengthy unemployment, bad advice from a tax specialist, or harm caused by an act of God. Attorneys may assist taxpayers, whose spouses have created a major tax liability, to obtain Innocent Spouse Relief.
Taxpayers should consult an IRS tax attorney sooner, rather than later, to avoid being slammed with more penalties and interest. A lawyer will definitely help the client file returns, assemble all documentation, and pay their back taxes. If possible, a lawyer will help clients to pay less than the amount they actually owe.
The IRS begins the collection process by sending a bill. After the original bill is sent, a form letter is directed to the taxpayer, with a notice of penalties and interest. The purpose of this letter is to demand payment, not only of the original tax, but also of extra charges which have accrued.
If taxpayers do not pay, the IRS may then file a Notice of Federal Tax Lien. With a lien, the IRS has a legal claim to property, as security, or payment, for debt. A lien is the first major step in the collection process, to try to acquire all of the money owed by the taxpayer.
Another step in the collection process is the tax levy. Taxpayers will be served with a Notice of Levy, after receiving a thirty-day warning. With a levy, the IRS begins to seize assets. Wage garnishment is the most common form of levy, followed by the bank levy, through which money is directly taken from a bank account. Vulnerable assets may also include homes, vehicles, and 401k accounts.
Taxpayers should consult a lawyer before paying the amount owed. The reason for waiting, is that the tax lawyer may be able to help the taxpayer settle for less than is owed to the IRS. With an attorney's help, taxpayers will collect their documentation, file all tax returns, and make arrangements to pay their bills, either by lump sum or installment plan.
A lawyer may also be able to secure an abatement of penalties and interest. Reasons for abatement may include major family problems, illness, or incarceration. Other reasons may include lengthy unemployment, bad advice from a tax specialist, or harm caused by an act of God. Attorneys may assist taxpayers, whose spouses have created a major tax liability, to obtain Innocent Spouse Relief.
Taxpayers should consult an IRS tax attorney sooner, rather than later, to avoid being slammed with more penalties and interest. A lawyer will definitely help the client file returns, assemble all documentation, and pay their back taxes. If possible, a lawyer will help clients to pay less than the amount they actually owe.
About the Author:
An IRS tax attorney knowledgeable in the legal aspects of tax filings. If you use a tax attorney IRS negotiations and arrangements may be much easier.