One of the ways out of paying taxes is to settle it with the IRS. Most taxpayers with delinquent tax debts think that this option is the best solution to their problems and accordingly they go to a tax professional to solve their tax problems. The IRS will not accept tax settlement if the taxpayer cannot pay his/her tax liability within the time allowed. The IRS will also not accept tax settlement if it is not applicable to the taxpayer’s specific situation. The IRS will not consider the taxpayer as a candidate for tax relief if his/her tax debt problem does not meet certain requirements.
If you find yourself in such a situation where you are unable to pay your tax balances, the first thing you need to do is to request a tax settlement firm to help you settle your tax liability. A tax settlement firm is an organization that specializes in representing taxpayers who are in financial difficulties and cannot pay their tax debts. These tax settlement firms will negotiate with the IRS on your behalf.
Taxpayers may not be able to solve their issues alone; therefore, a tax defense attorney is very helpful. Tax attorneys have years of experience dealing with the IRS and other tax authorities. A tax defense attorney has the knowledge and ability to negotiate with the IRS in order to get maximum tax settlement benefits for the taxpayer. Almost always, tax attorneys also offer further assistance related to tax debt settlement.
Tax debt settlement usually takes place when taxpayers can no longer pay the full amount due to the IRS. When the taxpayer’s tax dues become too high, he/she may go to an attorney who will help him/her file for tax settlement. Tax attorneys usually deal with cases of delinquent taxes or tax non-payment. These tax problems are most common to taxpayers who became negligent on their tax payments and could no longer pay the amount due to the IRS.
Taxpayers should be aware that a tax settlement or an Offer-in-Compromise (OIC) will not usually resolve tax problems. These tax issues usually go to criminal prosecution. When a taxpayer fails to pay taxes and does not have the financial means to pay, the IRS will initiate criminal proceedings. Taxpayers can hire a tax attorney who will negotiate with the IRS. Before any tax negotiations take place, the tax attorney must inform the taxpayer about all the available options. If the taxpayer fails to pay the taxes, the penalties will continue until the full amount is paid or the tax arrears are satisfied.
A tax liability according to a tax debt attorney providing services in all of Virginia may be caused by many reasons. One reason may be the loss of a job which leaves a taxpayer unemployed. Another reason could be the death of a household wage earner resulting in the immediate loss of tax liability. Taxation issues also arise out of circumstances beyond a taxpayer’s control such as the loss of income because of divorce or illness. Taxation settlement firms provide free legal advice on tax liabilities.