How Tax Lawyers Help Taxpayers Fix Tax Debt Issues
If you’re facing a tax debt problem, you need to find out how to handle tax debts. One of the most important steps to help you avoid tax problems is to make sure you pay your state tax liability on time. When you pay your state tax liability, the state government sends notice to the IRS stating that you paid the tax. The IRS then takes over and tries to contact the state tax debt relief agency for further information. Most states have a department of revenue, or a tax department, that will help taxpayers with their state tax debt issues.
Most state tax debt relief programs offer taxpayers an installment payment plan or an amortization schedule. An installment payment plan is basically an arrangement in which you pay a fixed amount each month. This payment plan can range from six months to two years. The IRS offers a variety of tax debt relief options that can be used with an installment payment plan.
Tax debt is more common now days because of the weak economy. Many people need tax debt relief because they cannot afford to pay the full amount owed. In order to receive a full within one year, taxpayers may be required to prove extreme hardship. If the taxpayer is able to prove extreme financial hardship, their debt may be forgiven. If a taxpayer is unable to pay the full amount within one year, some states allow the taxpayer to file for an extension and settle their tax debt prior to the due date.
If you’re looking to hire a tax attorney to help you with your state tax liability problems, it’s always a good idea to do some research before hiring someone. You can usually find out what experience they have by contacting the tax office where they work. If you need a tax settlement or an extension, it’s a good idea to make sure that the tax attorney has experience dealing with similar cases in the past. The tax code is very complex and many tax attorneys don’t know the details, so they cannot properly advise you on your tax liability situation.
A tax lawyer may be able to get tax debt relief for some tax liabilities. They will often negotiate with the IRS on your behalf and establish repayment programs that are beneficial to both parties. For example, if you owe payroll tax, but are able to prove that you can’t afford to make the payment, the tax lawyer may be able to negotiate a repayment plan that provides you with an incentive to make the payment and avoid tax liability, said New Jersey tax attorney.
It’s important to remember that tax debt relief isn’t automatic. You must follow the directions of the IRS to the letter. Ignoring the problem or failing to meet deadlines with the IRS can result in serious tax liability. If you are struggling with your tax debt, contact a tax lawyer as soon as possible to discuss your options for tax liability resolution. Don’t wait until it’s too late!