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Tax Attorneys Are the Best Defense Against the IRS

Filing taxes can be one of the most excruciating and confusing aspects of life. Correctly filling out tax forms requires W-2’s, 1099’s, receipts and so many other alpha-numeric documents that people just want to give up and find the nearest paper shredder. Most people send their paperwork to the local tax preparation office. Many avoid the process altogether by not filling their taxes. As a matter of fact, it is estimated that nearly 10 million people skip tax season entirely. Some have gotten away with it for many years, but due to improved technology the Internal Revenue Service is becoming more and more efficient at tracking those individuals who refuse to file their taxes. If the IRS accuses an individual of committing a tax violation, it is wise for that person to seek the counsel of a tax attorney. Tax laws and codes can be very complex. Without the expertise of an attorney, one could be faced with paying tremendous amounts of debt. These lawyers can not make debt magically disappear. They can, however, significantly reduce the amount an individual, small business, or large corporation owes the government. A tax attorney may try to get an offer in compromise which reduces the amount of debt owed to the government by one of three ways. The first method is called doubt as to liability. This occurs when there is a doubt that the amount of taxes owed is actually correct. Second, there may be doubt as to collectibility. Many times the government will accept reduced payment because the debtor would never be able to pay back the full amount of money owed. Lastly, there is a term known as effective tax administration. In this situation, the amount of money owed is correct and the debtor can pay back the full amount of debt, but paying the full amount would cause them undue economic hardship. Debt can also be negotiated down by a tax attorney through penalty abatement. Penalty abatement can be achieved in quite a few ways. The lawyer can claim reasonable cause which means that the debtor made an honest tax mistake, was ignorant of applicable tax laws, or was affected by death, illness, or some other extenuating circumstance. Statutory exceptions can be made based on legislative changes in tax codes. Administration waivers may be issued due to a natural disaster, fire, or misguided legal/tax advice. Also, the IRS may have made a mistake in assessing the financial situation. If the attorney can prove this, they can claim a correction of service error. Tax attorneys can lift property levies and wage garnishments that may have been unfairly imposed by the IRS. When levies are forced, the government has the authority to take anything they deem valuable from the debtor and sell it at auction. Wage garnishments mean that the government can take a portion of the debtor’s employment checks. With these restrictions lifted, debtors can keep their possessions and regain control of their income. If there is a need for audit defense or catching up on unfilled tax returns, the smart thing to do is contact a local tax attorney. He will make dealing with the IRS a lot less painful.