The common citizen only knows so much about the tax code, so it’s easy to commit errors. How do you calculate personal income, business income, corporate income, or whatever other kinds of income in a tax year? There are online tax calculators, but you can take a misstep at any time. What about tax rates, tax credits, tax cuts, tax deductions, and exemptions? This is why people need the help of tax professionals to comply with the tax system.
Encountering tax problems can wear on your nerves, but you can resolve them with the help of a tax attorney. Tax lawyers can assist you in the following ways:
- Negotiate a tax debt settlement so you only need to pay a much-reduced amount.
- Prevent or stop wage garnishment, bank levy, or any other property seizure.
- Resolve tax liens.
- Eliminate penalty charges.
- Prevent visits from an Internal Revenue Service auditor.
- Address payroll tax, sales tax, or any other corporate tax issue.
- Come up with a reasonable installment agreement or tax payment plan.
- Work out a currently not collectible status.
Tax Relief Services
In what ways within tax laws can a lawyer assist you when you’re dealing with tax issues?
- Tax Preparation
Tax law firms have tax preparers who can take care of your quarterly or annual income tax returns, considerably minimizing the stress that the tax season elicits.
- Audit Representation
Your lawyer can serve as a buffer between you and an auditor from the department of revenue, defending you and protecting you throughout the audit process.
- Penalty Abatement
You can get assistance in reducing your IRS tax debts by having your penalties removed.
- Installment Agreement
This is an option you have for paying off your tax debts. Your lawyer can analyze your finances and come up with a minimal tax payments arrangement with the department of taxation.
- Offer in Compromise
This is a debt settlement program that allows you to pay for just a fraction of what you owe for the purpose of eliminating tax debt and giving you a fresh start. The IRS’ premise for accepting an offer in compromise is that it is doubtful that it can collect the total amount from you, or that collecting in full will cause you undue economic hardship. This can be a complicated process so it’s best that a lawyer negotiates on your behalf.
- Currently Not Collectible
Your lawyer can get you placed on a currently not collectible status so that the IRS will cease any collection effort on the grounds that payment of your tax debts would lead to significant hardship. This status is reviewed every year or so to confirm that you remain in hardship.
Filing for bankruptcy can be tax-motivated. Many filers do it for tax purposes. Keep in mind, however, that only certain taxes are dischargeable. Your lawyer will be able to determine whether you should file for bankruptcy or take a different route.
- Removal of tax lien or levy.
Your lawyer can prevent or remove a tax lien or levy. These two are aggressive tax collection efforts that have a considerable negative impact on a person’s financial health.
- TPT Preparation
In case you have any unfilled transaction privilege tax (TPT) or sales tax, your lawyer can help you seek penalty abatements and work on resolving any TPT liability issues.
- Trust Fund Recovery Penalty
If you have a business that failed to pay its payroll taxes, those responsible for paying those taxes may end up being taxed. If you’re being assessed for a trust fund recovery penalty (TFRP), your lawyer can represent you and defend you as a non-responsible party or come up with an action plan that will allow repayment of IRS penalties in the least harmful way. Take note that TFRP is not discharged in bankruptcy.
- Unfiled Tax Returns
Unfilled individual income tax returns are usually a problem because you don’t have all the information you need to file them. Tax law offices often have the resources to gather the tax information you need. In case of documentation really isn’t available, your lawyer can advise you accordingly. At any rate, a law firm’s professional tax preparation can help you prepare unfiled tax returns in the most efficient way.
- Appeals and Tax Court Representation
If have problems with an audit (e.g. it was done without your knowledge or it didn’t include everything you provided), your lawyer can appeal or contest it on your behalf.
Arizona Tax Attorney
Tax compliance can be an involved process. Issues often arise from delinquent payment to an actual tax dispute. You need an experienced attorney who can help you put an end to your state tax problems. Call us at Pew Law Center for legal help in getting your tax situation under control.