Income Tax Attorney

When Uncle Sam demands payment, an income tax attorney can help resolve indebtedness and stop harassing collections. Owing the Internal Revenue Service is no laughing matter. Millions of taxpayers are troubled by mounting penalties and interests, wage garnishments, bank levies, and ruined personal credit all due to an inability to pay or resolve past due federal taxes. While most individuals view the Internal Revenue Service as a big bad wolf eager to devour little Red Riding Hood, the federal government's goal is to collect taxes which help fund services for public programs. The nation depends on such revenue to keep the country financially solvent; and when taxpayers defer to pay, everyone suffers. "For this cause pay ye tribute also: for they are God's ministers, attending continually upon this very thing. Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour. Owe no man any thing, but to love one another:" (Romans 13:6-8a). In addition to penalties and interest, delinquent tax obligations are not dischargeable by bankruptcy and can severely damage an individual's credit worthiness. But an independent IRS tax lawyer can work with debtors to clear up past delinquencies.

A reputable income tax attorney works with delinquent taxpayers to mediate Internal Revenue Service issues, stop collection efforts, and settle federal and state unpaid obligations by negotiating with the IRS and state revenue agencies to reach favorable and manageable debt resolution. The Internal Revenue Service provides many options to resolve taxpayer debt; and an experienced IRS tax lawyer will be familiar with methods which are applicable to a client's particular situation. Attorneys may negotiate a payment plan, or Offer in Compromise, which reduces the amount owed and enables delinquent taxpayers to make monthly installments until the reduced amount is paid in full. Debt solution attorneys help debtors prepare lengthy income earnings statements, records of creditors owed, and listings of assets and liabilities. While Internal Revenue Service counselors consult with a debtor's legal representative to work out the details of payment plans, the debtor is under no obligation to personally confer with the IRS. Debt collection proceedings cease during negotiations and once payment plans have been implemented.

In order to work out an Offer in Compromise with the Internal Revenue Service, debtors must file all returns for prior years. A competent IRS tax lawyer can help delinquent payers comply with filing regulations for individual and business requirements. In many instances, the Internal Revenue Service will work with attorneys to restructure business and personal revenue debts, or resolve long standing discrepancies on old returns. The U.S. Department of Revenue understands that delinquency can be a result of a myriad of financial setbacks. Individual taxpayers may become unemployed or disabled and are left with unpaid obligations. Divorce, death of a spouse, and bankruptcy are also contributing factors which can lead to an inability to meet obligations. But knowlegeable lawyers can negotiate old debts according to a taxpayer's current financial situation by presenting substantial evidence of the debtor's changing economic status.

Men and women who serve overseas in the military also face revenue issues. While the U.S. Armed Forces employs military personnel to help service men and women resolve complicated financial matters, stateside spouses and family members may consult an income tax attorney to help clarify and mediate problems. Military personnel returning from overseas assignments may fall behind in revenue obligations due to an inability to secure employment. An astute IRS tax lawyer will know how to deftly plead a serviceman's case to the Internal Revenue Service and negotiate a favorable settlement on the client's behalf. While IRS obligations are not dischargeable in Chapter 7, 11, or 13 bankruptcy cases, an experienced tax attorney can negotiate for a debt reduction or settlement, which will enable debtors to gradually clear up delinquencies. Again, once an attorney begins negotiating with the Internal Revenue Service, collection efforts cease. And although the debt cannot be forgiven, the taxpayer is alleviated from the emotional trauma of dealing with the collection process.

Once the government accepts an Offer in Compromise, or debt resolution, the IRS tax lawyer will advise the client to not default on payment arrangements. Defaulting on an Offer in Compromise will result in back taxes being due and payable, including interest and penalties. In other words, debtors will be back to "square one" and a second Offer may not be accepted due to a failure to honor the first commitment. Debtors should work with an attorney to ensure that the Offer in Compromise suggests a reasonable payment plan within certain budget restraints. IRS debt settlement is usually limited to no more than five to six years to catch up delinquent payments. Depending on the amount owed, some debtors may ask attorneys to devise a more manageable plan to reduce their debt.

Hiring an income tax attorney can be expensive. Taxpayers seeking legal help in resolving Internal Revenue Service disputes should be prepared to pay either a retainer, an hourly fee, or a percentage of monies owed. Retainers are flat rates for services rendered during a specific time frame. Hourly rates can range from $100 to $250 depending on the complexity of the case. Attorneys may charge 10, 15, or as much as 30 percent of the adjusted fee settlement, which can amount to a hefty sum! Of course, a reputable lawyer may offer payment via installments. Debtors should select attorneys who are knowledgeable of federal and state revenue regulations, particularly intricate details of collection and debt resolution proceedings. Dealing with the IRS is one instance when hiring a novice is definitely not a good idea! Some attorneys are retired IRS counselors and are intimately aware of how the system works. Above all, debtors should steer clear of debt resolution attorneys or firms which make claims of settling back taxes for pennies on the dollar. Remember: If it sounds too good to be true, it probably is.