Tax Debt and Liability Problems

Total Tax Lawyer  /  Tax Debt and Liability Problems

Taxpayers run into various types of tax problems when they don’t file their income tax returns or don’t pay their back taxes.

The IRS can be harsh and frustrating to deal with alone about fines, interest, and penalties. Many people choose to work with a tax attorney who knows the laws and options for their specific financial and tax situation.

Fill out a free tax evaluation form below and connect with a tax lawyer today.

Gathering all the necessary paperwork can be a pain, but working with a tax lawyer who knows the necessary filing requirements, can explain options for forgiveness and repayment of tax debts, and can negotiate with the IRS on your behalf could help ease the process.

Tax Liens, Levys, Wage Garnishments

Owing back taxes, interest, and penalties to the IRS can be intimidating. They are one of the most powerful creditors you can be in debt to. Some common tax debt problems are:

  • Notices: The IRS has about 75 types of tax-related issues that it sends notice to taxpayers about. Trying to understand exactly why a notice was sent and what it requires can be confusing. A tax attorney can further explain these notices to you and discuss a course of action.
  • Tax Audits: Most taxpayers will likely not experience a tax audit. But if you do, the IRS or state tax department will review and verify your income, expenses and deductions to make sure they are being reported correctly. There is an immense amount of paperwork and documentation involved in an audit and speaking with a local tax attorney could help you make sense of what is needed during your tax audit.
  • Unpaid Tax Returns: There are many reasons why taxpayers don’t file their taxes. But not paying your taxes can lead to stiff penalties by the government and ruin your future finances. You could face penalties (up to 25% of the taxes due plus interest) or levies. Working with a tax lawyer can help you navigate through the filing process.
  • Tax Liens: When the government issues a tax lien, it takes legal claim of your assets until you pay your taxes. The lien can be removed if you pay your taxes or ensure that you will be paying back your taxes in some way.
  • Tax Levy: A tax levy may be imposed by the IRS if you do nothing about the tax liens on your property and the IRS then takes any or all of your assets to pay your tax debt. They can seize your house, car, wages, savings, and anything that has monetary value to repay your taxes. Usually you are given just 30 days’ notice before they go after your assets.
  • Wage Garnishment: The most common type of tax levy is when the IRS garnishes your wages through your employer to collect unpaid taxes. The amount the IRS can garnish from your wages will be based on your filing status and number of dependents. You can discuss your options for ending wage garnishment with a tax attorney.

The federal laws can be complicated and state tax laws can vary.

The IRS and your state aren’t always easy to work with. It can be extremely stressful and emotionally draining learning your rights regarding your tax problems.

There are several tax questions and issues that come up during the process of dealing with the IRS or your state, but you can work with a tax lawyer in your area to help you with resolve your tax situation.