The accumulation of debt due to unpaid taxes is becoming increasingly common in the United States. IRS tax debt can result from a number of financial problems brought about by special circumstances such as illness, accidents, divorce, layoffs or prolonged periods of unemployment. If you are one of the many taxpayers out there in tax debt as a result of this type of situation, you should know that there are several tax debt management solutions and tips that can help you overcome your financial issues and achieve tax debt relief.
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Life has a tendency to be extremely unpredictable and most of the time were just not equipped to handle the financial ramifications that may result, such as the sudden inability to pay our taxes. The penalty fees that get tacked on to your tax debt can put further strain on the situation. With that in mind, can you guess how most people manage their IRS tax debt? Unfortunately, a lot of people tend to handle tax debt by procrastination or representing themselves in certain cases, without seeking the necessary legal assistance.
Tax attorneys are able to provide you with a variety of services that can help you effectively manage your tax debt; they range from the following types of tax services:
Income tax return preparation and filing Negotiations with the IRS in Offer in Compromise cases Penalty Abatement petitions Full audit representations Elderly tax settlement Securing affordable Installment Agreements
There are very specific laws that govern IRS tax procedures and not everyone is well-versed on the rules and regulations that go along with over-due taxes. For this particular reason, its very essential to hire a qualified tax attorney to represent you on cases involving the settlement of tax debt.
Tax Attorney Qualification Criteria & Fees
So how exactly do you find a reputable tax attorney to represent you in an IRS tax debt case? Well, you need to search for professionals in the field that satisfy some important qualification criteria. Among them include a tax attorney who holds a Masters of Law in Taxation, commonly referred to as LLM and one who has a substantial amount of experience working with and for the IRS. Because the last thing you want to do is hire someone who is dishonorable, its also important for you to look for a tax attorney who does not have any complaints against them. It often helps to get a second or third opinion before hiring a tax attorney to take on your tax debt case.
Theres no doubt that tax debt settlement can be achieved with the help of tax attorneys, however naturally, they do charge fees for such tax services. Typically, a tax lawyer will charge you for all the services rendered from the beginning to the end of the case. Even though some of the larger law firms tend to be more expensive, its usually a safer bet to retain their tax services rather than losing your case, which could end up costing you even more!
Alternative Tax Debt Relief Options
If using tax services offered by an attorney is not something youre interested in or willing to do, there are some alternative ways for you to get out of tax debt. For example, if you own property such as an apartment or home, you may be eligible to apply for a home equity line of credit. You can use the money obtained for tax debt settlement.
Furthermore, if you are having difficulty paying your taxes, you can also consider selling some of your personal possessions to gain the funds necessary to pay off your IRS tax debt. It may difficult to part with valuables such as jewelry or a car, however take into account that doing so will help you get much-needed tax debt relief!