If you owe $10,000 or more in IRS tax debt? Having to come face-to-face with any tax authority, be it the IRS or at the state level, can be very intimidating for most average taxpayers.
The beginning thought of T.S Eliot’s masterwork “The Wasteland” states that “April is the cruelest month,” and while his poem deals with themes far more universal than tax time in the US, millions of American taxpayers can only nod their heads in agreement at its opening words. But those taxpayers for whom April has added insult to injury in the form of an IRS or state tax board dispute, a tax attorney can be a longed-for ally.
And taxpayers who try to deal with tax authorities on their won may find themselves completely immersed in legal speak which they do not understand, and agreeing to things contrary to their own best interests.
By hiring a tax attorney, you as a beleaguered taxpayer can have someone speaking the same language as the authorities and interpreting what they are saying in easy-to-comprehend terms. A tax attorney will also be able to help you dial down the stress level a few notches by letting you know when the taxmen are bluffing you.
If you are considering implementing tax negotiations, the first thing you must do is find a qualified tax specialist. You will not be able to effectively handle a tax negotiation on your own, and the help of a trained professional is imperative. A competent tax professional will be able to collect all of the pertinent information, complete all of the necessary paperwork, and handle all of the correspondence with the IRS representatives.
There is a program entitled “Offers in Compromise”. This program allows you, through your hired tax professional, to make an offer to the Internal Revenue Service for an amount that is actually less than the amount of taxes that you owe. Sometimes, the Internal Revenue Service will accept this offer, and you will be able to become debt free from the Internal Revenue Service for much less than what you had originally owed.
If you do choose to enter into tax negotiations with the Internal Revenue Service, and you have decided to make an Offer in Compromise, you need to understand that the Internal Revenue Service has three factors that they examine when deciding whether or not to accept such an offer.
The IRS will look at many factors and determine if any of the following apply in your particular case; whether there is any doubt that you even actually owe the liability, whether you can afford to pay the liability if you truly owe it, and whether or not the settlement would promote effective tax administration.