If you do not pay the full amount of your federal taxes, you can expect to receive a notice from the IRS detailing its intention to collect your delinquent debt. These efforts can be disruptive and even make it more difficult to pay what you owe while managing your other expenses.
A Bethesda IRS collections lawyer can provide you with options to address your delinquency and get back on track. Often, it is possible to reach an agreement that leads the federal government to halt its efforts to collect from you. Our local tax lawyer can answer your questions and advise you of your options for satisfying your outstanding debt.
IRS Collection Methods
The IRS has different collection tools at its disposal. When a taxpayer fails to pay what is owed, the first step in this process involves a notice from the government highlighting the full amount owed. There is an opportunity to challenge this calculation if mistakes have been made, but that has to happen right away. A Bethesda IRS collections attorney could examine your financial profile to determine if a lower tax assessment is more accurate.
If these efforts do not resolve the dispute, the IRS will begin efforts to collect the debt. The government has the power to place levies on assets, including real property. They can also garnish wages, taking a portion of your paycheck to cover what is owed. If you have bank accounts, the IRS could seize some or all of those funds. Finally, it is possible for them to attach either state or federal tax returns and use those proceeds to cover the debt.
As soon as you receive notice of a tax debt, you could benefit from immediately contacting legal counsel. The longer you wait, the more likely it is that you will experience a tax lien or levy.
How to Resolve Tax Debts by the IRS
An IRS collections lawyer in Bethesda can provide you with a number of options to pay down your debts. What’s more, simply entering into certain negotiations with the government might temporarily halt any collection efforts against you.
Installment Agreements
The most common way to pay back delinquent tax obligations is through an installment agreement – often involving a payment every month. These payment plays are often accepted by the IRS since they lead to full repayment.
Innocent Spouse Relief
Spouses are responsible for the accuracy of each other’s returns and payments when they file jointly. However, relief is available for one spouse when the other party handles the taxes and fails to pay, or when the innocent spouse was legitimately not aware of the illegal actions of the other.
Offer in Compromise
If there is evidence that you cannot pay the full amount of what you owe, the IRS might consider settling the debt at a discount. This is only available if you do not have any unfiled tax returns.
Currently Not Collectible Status
The IRS will sometimes agree to halt collection efforts when a taxpayer can show they cannot pay their taxes and also cover basic living expenses. This is known as awarding Currently Not Collectible status. This status is not permanent, and the IRS can pursue collection again in the future if you are deemed able to pay the owed amounts.
Talk to an IRS Collections Attorney in Bethesda for Your Full Range of Options
There is some flexibility when it comes to paying off the taxes you owe the IRS, in certain situations. You have the right to hire legal counsel to assist you with finding a resolution. Talk to a Bethesda IRS collections lawyer right away to discuss the collection efforts that may be leveled against you, and the ways in which you can come into compliance.