Owing back taxes to the Internal Revenue Service (IRS) can be overwhelming. The IRS may begin collection efforts with letters and notices. However, if you do not pay the back taxes or arrange to resolve your tax debt, the IRS continues to escalate tax collection efforts. Garnishments, seizures, and federal tax liens are just a few of the aggressive collection efforts the IRS may take to collect back taxes.
A Maryland tax attorney can help you avoid aggressive tax collection efforts. Handling issues related to back taxes without legal counsel could cause the IRS being tougher on you than is necessary.
Ways to Settle Back Taxes with The IRS
Ignoring back taxes will only make the IRS more aggressive in its collection efforts. However, if you attempt to work with the IRS, settling back taxes may go easier for you. A Maryland tax attorney can help you review your options for settling back taxes with the IRS to determine which options give you the best chance of settling back taxes for the least money.
Some options for settling back taxes include:
· An Installment Agreement with Partial Payments
The IRS works with taxpayers to pay back taxes through an installment plan instead of requiring a lump sum payment. However, some taxpayers may qualify for an installment plan with partial payments. By using a long-term installment plan, you can apply for the lowest monthly payment so you can keep more money in your bank account each month to pay monthly expenses.
· Currently Not Collectible
You can apply for your tax debt to be categorized as Currently Not Collectible by the IRS. The IRS may put a hold on your tax debt if you can prove that you do not have the resources to pay the tax debt at this moment. This tactic can give you time to work out another agreement with the IRS to avoid levies, liens, or seizures. Usually,the IRS will hold a Currently Not Collectible account in abeyance for a year.
· Offer in Compromise
An accepted Offer in Compromise allows you to get rid of back taxes for less than you owe. You can save thousands of dollars if you are eligible for this program. Usually you must make a lump sum to settle the debt. However, the IRS may allow you to make several payments over a short period to resolve the tax debt.
· Relief from Wage Garnishments
If your wages are being garnishedfor back taxes, do not assume there is nothing you can do. The IRS may release the garnishment if you can demonstrate that the wage garnishment prevents you from paying your basic living expenses.
· Innocent Spouse Relief
If the tax debt you owe belongs to your spouse, you may be eligible for innocent spouse relief. You must prove that when you signed the joint tax returns that resulted in the tax debt, you did not know and had no reason to know that your spouse had included erroneous items on the tax return.
· The Statute of Limitations for Tax Debts
The IRS typically has 10 years from the date of assessment to collect tax debt. If you have been struggling with back tax debt for many years, you need to determine if the IRS has the right to collect may collect the debt orif the deadline for collection has expired.
Consult a Maryland Tax Attorney About How to Get Rid of Back Tax Debt
Working with a Maryland tax attorney may be a way to get the IRS to go easier on you because the attorney understands all legal options to resolve back taxes. Contact Maryland tax attorney Steve Thienel to determine your options for dealing with back taxes that resolves your tax debt in a way that is in your best interest. Maryland tax attorney Steve Thienel is dedicated to assisting clients in Maryland, Virginia, and throughout the DC Metro area and can provide trusted guidance and legal counsel regarding all tax issues you and your company will face.