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How to Deal with IRS Back Taxes

When tax season is in full swing, chances are you are either a person anxiously awaiting a refund or you are among those in the population who owe the IRS.  The worse of the two is when you actually think you have paid enough into the IRS throughout the year, only to find out that in actuality, you owe back taxes in an amount that now causes a major financial burden to you.

In many cases, it is probably the best course of action to seek out a legal tax expert to sit down with and go over your distinctive situation.  This individual would be able to advise you on how to prepare yourself when you reach out to the IRS revenue officer, whose job it will be to collect money for the government.  Remember the IRS is not infallible and depending on your circumstances – many taxpayers fall in arrears just because of failing to file a timely tax return due to personal issues and are now in a financial bind – you do have rights that you should be knowledgeable about before you move forward with resolution.

Dallo Law Group specializes in finding the best options for you when you owe the IRS.  The first step when faced with an IRS notice is to take it seriously; if you think you can get away with simply ignoring these letters, i.e. not responding or even perhaps rejecting to sign the certified envelope it came in, you will be digging yourself in a deep hole.  The IRS has established various ways to help in its collection process.

Here is a quick rundown:

  • Liens:  An IRS lien is essentially a recorded notice to claim your property.  Therefore, any intent that you may have to sell or transfer the said property will be fruitless.  Both real and personal property can acquire this lien which may be on your primary residence, land, timber, vehicles, investments, and even future property you may acquire after you get the initial lien.
  • Levies:  An IRS levy is an action against the taxpayer that states the intent to seize property in the near future.  Typically, the primary way a levy is used is against a bank account, i.e. the agency takes the funds.
  • Wage Garnishments:  An IRS wage garnishment is a recurring event every time you get paid.  A certain percentage from your paycheck will be held and sent to the IRS until your debt is paid off.

In some cases, it may be prudent to acquire representation in order to better navigate the delinquency.  IRS collection officers can be intimidating and unrelenting.  Our experienced professionals at Dallo Law Group can provide you with the best financial interest protection possible.  Your circumstances may just simply warrant evaluation and tips on how to negotiate with the IRS.  On the other hand, you may need attorney representation with the tax agency’s officials.  In either case, our attorneys have your interest protection in mind.

Available Alternatives When You Owe the IRS

You should never think that you do not have options when it comes to having a back tax bill from the IRS.  It may be the case that in the end of it all, you and your attorney have come to the conclusion that you do indeed owe a specified amount of money and given your situation, you are able to pay it at once and end the matter.  For most, however, especially if things have spiraled out of control because of a personal issue, IRS notices for money owed are not so easily dealt with.  Here are a few options that could accommodate your difficulties:

  • Offer in Compromise (OIC): If you cannot pay the full amount you owe, this option allows you to settle your debt for less than it is.  Again, a tax attorney would be the best person to evaluate if you have the right set of circumstances to get approval for this concession.
  • Installment Plan: Generally, if you owe $25,000 or less, the IRS will allow you to pay your back taxes over a period of time.  You will have to set up the agreement and comply with the terms.
  • Non-Collectible Status: A good tax practitioner may also determine if your situation could warrant an IRS non-collectible status for your outstanding tax debt.  Criteria such as how old the bill is as well as what your current income is, among other factors, can be calculated to see if you may qualify.

Bear in mind, once it is determined by the IRS that you owe money, you want to be absolutely sure that nothing on your return is amiss.  Our professionals at Dallo Law Group can help.  We will carefully evaluate your tax return, including your source documents, to make sure that your income was reported properly and that all the deductions you were owed were present.  We will also come to your aid if you happen to have missed filing your return because of circumstances beyond your control.  Life gets complicated sometimes!  That does not mean your world should get turned upside down.

Dallo Law Group prides itself in providing the best tax and legal representation available out there.  With our combined IRS top notch communication skills and unsurpassed legal knowledge, we can help you alleviate financial burdens by working out a plan that is best suited for you.  As always, we offer a free legal evaluation where we will explain to you what to expect and within what time frame.

Reach out to us at:  619-795-8000.