Unpaid Income Taxes
Has Uncle Sam sent notices asking you to pay outstanding taxes? Don’t give in to temptation to toss the mail into a shoebox and shove it out of sight. IRS notices arrive in increasingly threatening language. Ignoring them can lead to extremely high penalties and interest, and maybe even to audits of tax returns, tax liens on your real property, and levies of your wages and other assets.
So what’s the best approach to dealing with IRS collection notices? If you know you owe the taxes, and if you have the money, pay. Pay immediately. Pay in full.
But what if you disagree with the amount the IRS states that is due? What if your financial circumstances don’t allow you to clear your debt? What if penalties and interest equal or exceed the principal amount of taxes you owe? What if you’re simply so stressed by the entire situation that you feel incapable of facing it on your own?
Be practical about handling your IRS debt. If you’ve approached the IRS about your outstanding balance but are still unable to arrive at an acceptable way to honor the obligation, or if you don’t have the tools to resolve the issue, it’s to your advantage to consult a tax attorney – and quickly. The old adage “time is of the essence” holds especially true with IRS matters. Law Offices of Christy Lee, P.C., can assist you in a number of ways:
When the IRS believes that you are seriously attempting to tackle your tax debt, it is more likely to extend deadlines for response to its demands for payment. Hiring us shows the IRS that you do not wish to hide from your obligations, that you are willing to cooperate with the IRS as long as your rights are observed, and that you are sincere about clearing the debt.
We advise you about the various options available to you regarding the tax debt, then assess your tax case and make sound recommendations concerning the best course of action to pursue. We act as an intermediary between you and the IRS in order to better protect you.
For the taxpayer considering an installment agreement, IRS guidelines and regulations can become very complicated, since the agreement is based on calculations of your income and allowed expenses. At Law Offices of Christy Lee, P.C., we assess your financial situation to determine a likely course of action regarding the debt, and we advise you concerning the best methods to use when approaching the IRS to secure a workable installment plan for you. We understand what documentation the IRS expects you to produce for the agreement and the preferred format for presenting it to the IRS. We screen unnecessary and potentially damaging information when communicating with the IRS, and we fight on your behalf when the IRS demands a higher payment each month than you can realistically make.
If you owe a large amount in taxes, but your current circumstances don’t allow for clearing the debt in full, one of your options is the Offer in Compromise (“OIC”). The OIC enables you to resolve your tax debt for less than the full amount due Uncle Sam, who compares your income and other assets to your expenses in order to decide how much you must pay toward the tax debt. In other words, the IRS compromises with you concerning the total due.
And as with the installment agreement, if you turn to Law Offices of Christy Lee, P.C., for assistance with the OIC, you will increase the probability of an advantageous outcome for yourself. We will look at your financial records and determine what the IRS is likely to ask of you to settle the debt. If your tax filings are not current, we will work with you to become compliant. Then we will advise you concerning the documentation the IRS requires for the OIC and prepare the application for you, screening out unnecessary and potentially damaging information and protecting your rights in the process. During the application process, the OIC stops levies and other collection activities against you while we communicate directly with the IRS, greatly lessening your stress and assuring the most favorable solution to your tax debt.
If you have a heavy tax burden facing you, launch an active, positive line of attack by consulting us. As a tax boutique, Law Offices of Christy Lee, P.C., will help you achieve peace of mind and resolution to your tax debt at the same time. We offer all phases of legal assistance for your tax debt, from assessing your financial status to reviewing your IRS debt, working out a satisfactory method for addressing it and advising you on proactive measures to prevent a recurrence in the future.