Get Help from IRS Tax Settlement Attorneys in Lisle, IL Today
Taxes are something everyone must deal with at some point. For some people, paying their yearly taxes is not an issue. For others, owing taxes to the Internal Revenue Service (IRS) can quickly become an unmanageable burden burying them under stress and debt. There may be serious legal consequences when someone does not pay their taxes, which is why it is important to seek legal counsel if you find yourself unable to pay what you owe. With the help of experienced IRS tax settlement lawyers in Lisle, IL, there may be a way to find a resolution to tax issues and settle your debt.
What Does an IRS Tax Settlement Lawyer Do for Clients?
An IRS tax settlement attorney performs an array of legal tasks on behalf of their client in hopes of reaching a solution. They may work as the legal liaison between the IRS and the client in reaching the terms of a settlement. It is important to keep in mind that dealing with the IRS on your own may lead to further legal issues if you do not fully understand the situation and its possible ramifications. Once you obtain legal counsel, the IRS must communicate with your attorney regarding the case. This is important since the IRS may deploy many of the same tactics as any other collection agency, such as sending agents to your home. Tax lawyers become a liaison, so you are not obligated to communicate with the IRS on your own. An IRS tax settlement attorney will also counsel the client on their available options, what to expect from the IRS, and the process of seeking a settlement and answer any questions the client has along the way. An IRS tax settlement lawyer may also represent clients in the rare occurrence that a case requires further litigation before a judge. Finally, an IRS tax settlement attorney may work with a client on other related financial issues, such as liquidating assets, filing for bankruptcy, or other tax law services, depending on their situation.
Can I Pay Taxes in Installment Payments?
If you owe money to the IRS, the easiest and fastest way to deal with it is to simply pay the total amount owed all at once and be done with it. When faced with a hefty tax debt you are unable to pay, it is important to remember that there may be options available to you. The most common option is to seek an installment plan option through the IRS. The IRS installment plan is similar to any other form of debt in that you pay an agreed-upon amount during a specified time period until the debt is paid off in full. It is worth noting that the installment plan will include the principal balance and accrued interest, which means you will end up paying more over time. However, if this is the only viable option for your financial situation, you may just have to accept the extra interest as part of the deal. The length of time will depend on how much you owe, but an installment plan can be set up anywhere from a few months to years for larger debts. It is important to speak with an IRS tax settlement attorney prior to agreeing to an installment plan to ensure it’s in your best financial and legal interest since there may be other options available to you.
Do I Qualify for Currently Non-Collectible Status?
There are cases where the person is unable to pay their taxes in a lump sum or through an installment plan. When a person is unable to pay, they may be eligible for what is called Currently Non-Collectible (CNC) status. Not everyone qualifies for CNC status, but it can be a way for a person burdened with tax debt to find relief when unable to pay. In order to qualify for CNC status, a person must have a monthly income that is less than their monthly expenses. This would need to be proven over a period of time, such as the last 12 months, through documents, such as pay stubs, bank statements, and other debt documents. It is important to keep in mind that the IRS will typically consider the person’s assets prior to agreeing to CNC status. This means that a person will not be able to ask for CNC status in order to avoid paying taxes yet still retain significant assets, such as vehicles or properties, that they are unwilling to liquidate in order to settle their debt with the IRS. The best way to determine if you qualify for CNC status or if you will be expected to liquidate assets is to speak to IRS tax attorneys.
What is an Offer in Compromise?
If you do not qualify for CNC status and are unable to pay the entire amount due in taxes, another option may be an Offer in Compromise. An Offer in Compromise is an agreement between the taxpayer and the IRS that the payer will pay less than the original amount owed in an agreed-upon amount all at once in a lump sum. Similar to CNC status, this is an option that is only available to people who are unable to pay the full amount. It is not a way for someone capable of paying to simply avoid paying their full tax amount due. In order to obtain an agreement with the IRS, a person submits extensive financial information to show they are unable to pay the full amount. The person will also submit an offer of what they propose to pay as a lump sum based on their financial ability, and then the IRS decides if the offer is accepted or not. This process can be long and complicated, which is why many people choose to work with an IRS tax settlement lawyer when asking for an Offer of Compromise. An IRS tax settlement attorney will help clients compile the necessary financial records, configure an appropriate and feasible offer, and assist the client with submitting a new offer if the IRS does not agree to the initial amount.
What Happens if I Refuse to Pay Taxes?
The IRS has the legal authority to take certain actions against a person when they do not pay their taxes on time. If you do not pay your taxes or start the process of tax settlement, the IRS may take immediate action against you. In some instances, you may be able to delay payment while in the process of setting up a tax settlement, such as when waiting to hear back regarding CNC status approval or an Offer of Compromise offer. If the IRS decides to take action on unpaid taxes, the actions may include the following:
- Wage garnishment. The most common occurrence when someone does not pay their taxes is for the IRS to garnish their wages. The IRS will continue to take a portion of your paycheck until the tax debt is fulfilled.
- File a lien. The IRS may file a lien to let other lenders know that you have defaulted on your taxes, which makes it harder for you to get a vehicle loan, mortgage, or other forms of loans. It is intended to let other creditors know that you may not be able to take on further debt due to your tax status.
- Liquidate or take possession of assets. While your primary residence is typically considered safe from the IRS in most cases, they may expect you to liquidate other assets in order to pay the taxes owed. If you refuse to liquidate assets, the IRS may take further action, such as seizing the asset. When an asset, such as a property or vehicle, is seized by the IRS, they can sell the item without your consent as a means of collecting the debt you owe in taxes.
- Put a levy on retirement funds. The IRS may be able to take retirement funds in order to pay the taxes you owe the government. They may also be able to prevent you from taking out funds from a retirement account until you pay the amount you owe in taxes.
- Seize your bank account. If the IRS believes you have the money and are choosing not to pay your taxes, they may seize your bank accounts. They may also take this action if you are on a payment plan and you stop paying before the tax bill is settled.
- File tax evasion or similar charges against you. You could end up facing criminal charges, depending on much you owe. Tax evasion can be a serious crime and can lead to you owing even more in legal costs, fines, and even jail time in serious cases.
How Does Filing for Bankruptcy Impact Tax Payment?
Many people wonder if filing for bankruptcy will save them from paying their taxes. While it is common for someone to consider bankruptcy as a result of a hefty tax bill, you should keep in mind that it will not stop the IRS from expecting payment of the full amount. In some cases, the taxes may be wiped out, depending on the amount and the circumstances, but this is rare and may require the assistance of an IRS tax settlement attorney to lead to success. You may be able to use bankruptcy to avoid paying taxes if the taxes are primarily income taxes that were assessed more than three years before filing for bankruptcy. Again, this can be a complex case to make to the IRS, which is why hiring an experienced IRS tax settlement lawyer may be a good idea. Filing for bankruptcy is a complex decision not to be taken lightly. It has many consequences and impacts your financial future for years. If you are considering filing for bankruptcy as part of your plan for taxes, make sure you discuss this plan and its possible pitfalls with an IRS tax settlement lawyer before moving forward.
Get Legal Help Today
Taxes are not a matter you can ignore until the problem goes away on its own. If you are looking for options as you work on a settlement or solution, you may need reliable legal counsel on your side. Our team of experienced eviction lawyers is here to help. Whether looking for a CNC or you have concerns about setting up an installment plan, we can answer your questions and provide reliable guidance when you need it most. For a free consultation, contact us today at (708) 575-1500 to discuss your options. We are ready to fight for you and your legal rights.