Whether you are trying to figure out an efficient tax plan for your business or are overwhelmed by tax debt, dealing with the Internal Revenue Service (IRS) can in itself be a rather intimidating proposition. Many people are so overwhelmed by the thought of how much money they owe to the IRS that they ignore the problem, hoping it will go away. But as Arizona tax attorneys, we know that this is not a problem that will go away on its own.
If you are facing significant tax debt, it is important to remember that it is not the IRS’s job to make things easy for you. The IRS is certainly not your friend and you can be certain that they will not have your best interest at heart. What they are is the largest tax collection agency in the world with an incredible amount of resources and the ability to find and take your money.
This is why you need competent and experienced IRS lawyers on your side who help you navigate complex tax issues and to formulate a feasible plan that will help resolve your tax issues once and for all.
Your Tax Debt Increases with Time
When you have unpaid taxes, they gather penalties. The IRS typically charges a 0.5 penalty on the total tax debt amount for failure to pay. The IRS can charge you up to a 25 percent penalty on your total tax debt amount. These penalties keep adding up monthly not just on your tax debt in addition to the interest on the total debt. With interest and penalties, you could be looking at a sizeable amount of tax debt.
Even if you’re able to reduce the amount of penalties, the IRS usually doesn’t reduce or remove accumulated interest from tax debt.
When the IRS finds out that you owe taxes, they will first file a substitute tax return on your behalf to determine your tax liability. Once they have assessed precisely how much you owe, they will send you a notice informing you about how much you owe and how you can pay up. They will not provide you with information about your tax debt reduction options or how to reduce penalties.
They also won’t include information about the deductions or credits for which you may qualify. So, it is important that you consult with an experienced tax lawyer before proceeding further.
If they send out several of these payment notices and don’t get the required response from you, the IRS will proceed to seize and sell your assets. They may also place a federal tax lien to inform other creditors about your tax debt. This is public record and can seriously damage your credit history.
Do I Really Need An Arizona Tax Attorney?
Most of us work under the assumption that that you can resolve your tax issues by directly communicating with the IRS. But in such cases, things often take a turn for the worse because they are the professionals when it comes to taxes, not you. Trying to work things out on your own may land you deeper in the hole and result in penalties in addition to what you already owe the IRS.
Remember, those who work for the IRS are rewarded based on the number of cases they handle and the amount of money they collect. It is, in fact, against their best interest, to inform you about the different settlement options that are available to resolve your IRS debt. You need an experienced lawyer on your side who will look out for your best interest and help you evaluate the pros and cons of each settlement option before negotiating on your behalf with the IRS.
You need a qualified tax attorney on your side who can help you understand what you’re up against and to assist you in developing a plan to erase your tax problems once and for all. So, when should you contact a tax lawyer? You should do this as soon as you find out that you owe money to the IRS.
Doing so can help your tax lawyer reduce or even eliminate your tax problem before it gets completely out of hand. An attorney who is experienced and stays abreast of the tax codes can help you save money and achieve peace of mind.
How Can a Tax Lawyer in Arizona Help Me?
When you contact the Pew Law Center, our legal team with meet with you personally to develop a customized plan to resolve your tax issues. When you owe taxes, the IRS has the legal authority to take aggressive collection efforts. We can help stop tax levies and other collection actions by creating a solid IRS debt settlement plan.
A tax levy could involve a number of different types of actions. For example, the IRS may garnish your wages or place a levy on your property such as a home or vehicle or other valuable assets. This is a serious action, which your Arizona tax attorney can help successfully counter.
An IRS lawyer could settle your debt through a process known as an “offer in compromise,” where you and the IRS will come to an agreement regarding the ideal way to settle your debt. Your tax lawyer may also be able to work out a payment plan, which will allow you to arrange a manageable payment plan over a period of time. It may also be possible to settle your IRS tax debts for pennies on the dollar.
This means you may be able to settle the debt by paying significantly lesser than what you actually owe. With our tax lawyers in your corner, you can help avoid stress and expense in the long run. At the Pew Law Center, we are ready to help you every step of the way.
Let Our Professionals Help You With a Free Consultation
If you owe back taxes to the IRS, it is imperative that you take immediate action. By seeking the counsel of an experienced Arizona tax attorney, you may be able turn your situation around before it worsens. It is important to remember that you do have options. The longer you wait to act, the worse your situation might get. Call the Pew Law Center PLLC. at (480) 745-1770 for a no-cost, no-obligation consultation.