When seeking relief from IRS collections, prospective clients should consult with a tax debt relief attorney.
A reputable firm will get critical financial information from the customer and provide a realistic assessment for a reasonable fixed fee.
In addition, prospective clients should choose a firm with a presence in their local community.
4 Reasons for Tax Debt Relief Attorneys
The IRS is the most intimidating of all creditors, with legal authority to seize assets and use extreme collection measures.
Because of this, delinquent taxpayers may feel intimidated by dealing with the IRS.
Innocent spouse relief
Innocent spouse relief is a tax debt relief available to unmarried taxpayers. It can be granted to those who have not made any understatements on their tax returns.
Innocent spouse relief is a complex process requiring the assistance of a tax debt relief attorney.
Houston debt settlement attorneys can walk you through the process and help you obtain a fair outcome.
Tax debt relief attorneys are essential to applying for innocent spouse relief. To qualify for this tax debt relief, taxpayers must meet strict qualifications.
The IRS considers two tests: the actual knowledge test and the reason to know the test.
To qualify for innocent spouse relief, the taxpayer must not have had any knowledge of the deficiency. Otherwise, they would be liable for the penalties and interest imposed by the IRS.
Offer in compromise
An excellent way to reduce your total tax debt is to consider an Offer in Compromise (AIC) from a tax debt relief attorney.
A tax attorney in Houston will be able to explain the process and help you prepare your application.
In addition, they can help you make the best deal possible and ensure that your debt is reduced.
An AIC can help you end the burden of expensive penalties. If you can afford it, consider this solution.
An Offer in Compromise (AIC) is an option for tax debt relief that will be considered if your financial situation is difficult to repay in full.
Tax authorities generally look at your income, expenses, asset equity, and ability to pay.
Then, they analyze your financial records and tax returns to determine if you qualify.
Once you meet these qualifications, your tax debt relief attorney can determine whether an AIC will be beneficial.
A taxpayer with less than $10,000 in IRS debt can enter a guaranteed installment agreement with tax debt relief attorneys.
The deal requires the taxpayer to make timely payments and file all returns.
If the taxpayer meets the terms of the agreement, the IRS will not file a tax lien against their property. However, it is essential to remember that the IRS can levy your property during the Appeals Process.
In such a situation, entering into an installment agreement with tax debt relief attorneys is crucial to protect your assets.
Non-streamlined installment agreements require extensive financial verification and disclosure.
Negotiating an installment agreement with the IRS can be difficult, mainly if the taxpayer owes more than $10k in taxes.
The IRS may also seek to garnish wages or take money directly from a bank account, IRA, life insurance policy, or other assets.
In such cases, it is vital to consult an experienced attorney to protect your interests and prevent further damage.
A bankruptcy case creates an “estate,” a temporary legal owner of the debtor’s property.
The estate consists of all legal and equitable interests of the debtor in property, including other people’s property.
Nonexempt assets from the estate are paid to creditors. As a result, most unpaid debts are wiped out.
The bankruptcy process can take years, and hiring an attorney who knows the legal process is essential.
Under the Bankruptcy Code, a debtor can discharge many non-dischargeable debts. The most common types of debt are credit card and medical debt.
But other types of debts may also be discharged. These include past-due rent and utilities, court judgments, and business debt.
Student loans may also be discharged, but they must meet the “Brunner” test to qualify. Tax debt is a particular category, as it is any debt owed to the government after the filing deadline.