If you are facing collection efforts from the IRS due to an outstanding tax bill, it is important to understand that you have various options available to address the issue. While these collection efforts can be stressful, it is possible to avoid any long-term repercussions and resolve your debt with the IRS without penalties. A favorable outcome is possible when you rely on the guidance of a dedicated tax lawyer.
A Washington DC IRS collection lawyer could help you explore your options and resolve your tax debt in the most efficient way possible.
When it comes to collecting on tax debts, the IRS has many different tactics at its discretion. When taxes are not timely paid or tax returns are not filed, the federal government will take a number of steps to recover what is owed. Tax levies are one of the primary tools used by the IRS in their collection efforts. These levies can be placed on assets like a person’s salary or bank accounts, resulting in the federal government seizing part of someone’s paycheck or the money in their bank account. Levies can also attach to valuable possessions, including motor vehicles and real property.
Similar to a levy, a federal lien placed on a property means that a taxpayer cannot sell or otherwise transfer that property until the debt is paid. This can include real property, homes, vehicles, and bank accounts. It also serves as a warning signal to creditors, which could affect someone’s ability to acquire a loan or a new credit card.
In some cases, the IRS will seek answers directly from the taxpayer by issuing a summons for that person or, if applicable, for third parties that hold their assets. They typically issue these summonses to identify the assets owned by the taxpayer or to seek answers on their ability to pay back their debt. An IRS collection attorney in Washington DC could help respond to each of these collection efforts and potentially challenge the tax debt in the first place, if they believe the IRS made an error in determining someone was not in full compliance.
Fortunately for taxpayers, it is possible to resolve tax debt in a variety of ways. By reaching an agreement with the IRS, they could remove a lien or a levy, and squash a summons. The most straightforward way of ending the collections process is to simply pay the amount owed. However, this is not feasible for many taxpayers. In some cases, a Washington DC IRS collection attorney could determine if there is a way to have the total amount of owed taxes reduced dramatically or scheduled for payment in a more reasonable manner.
One of the most frequent methods of resolving an IRS tax dispute is through the use of an installment agreement. An installment agreement is a contract between the IRS and the taxpayer, where the taxpayer promises to pay back the debt in monthly installments instead of a lump sum. In exchange for this promise, the IRS agrees to remove any garnishments and levies.
An offer in compromise is a different kind of agreement with the IRS, which is typically reserved for those taxpayers who cannot meet their full obligation even after liquidating their assets. An offer in compromise could see the IRS agree to settle the debt for less than the full amount owed.
Unfortunately, some tax debt occurs because of criminal activity. When those crimes were committed by an individual without the knowledge or assistance of their spouse, there could be some relief available to the innocent spouse.
While there are many ways to address your tax debt, not every option will be available to every taxpayer. Offers in Compromise are often denied and many individuals lack the income to afford an installment agreement. Knowledge of the tax code and prior tax resolution experience with the IRS could make the difference in resolving a tax controversy quickly.
A Washington DC IRS collection lawyer could help you formulate the best plan to resolve your collection disputes with the IRS. To get started, ask to set up a private consultation today.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Vienna, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.