Tax Relief FAQ
You’ve decided to do something about your back taxes, and now you’re wondering whether hiring a lawyer to help you manage your tax debt is right for you. Know that a lawyer will make the process of resolving your back taxes a lot easier. An experienced tax relief attorney can achieve results that you most likely can’t achieve on your own.
Still, you’re bound to have questions about how an attorney can provide the tax relief you’re looking for. See below for some tax relief FAQs we often hear from our clients.
What is penalty relief?
Penalty relief is when the IRS agrees to waive some or all of the penalties that have accrued on your back taxes. Sometimes, penalties can be greater than the initial tax debt itself. When the IRS erases these penalties, it can suddenly become a lot easier to pay your tax bill.
What is an offer in compromise?
An offer in compromise is basically a settlement offer. Only some people will qualify to have their back tax debt settled, rather than being required to pay the full amount. Your tax relief lawyer will closely examine your personal situation, income, debts, assets, and amount of back taxes owed to see if you qualify for a settlement.
Can the IRS or state garnish my wages?
You bet they can. Unfortunately, the government has many resources at their disposal for collecting taxes, and taking money from your paycheck is one of them. They can also take money directly from your bank account and take your personal property, such as vehicles and homes. When the IRS or state takes your wages, it’s called a wage levy.
What does “Currently Not Collectible” mean?
It means you really do not have the financial resources to pay your taxes at this time. Your lawyer can prove this to the IRS or state, getting them to stop collections for a time. This can give you the peace of mind of knowing that you won’t keep being harassed for back taxes that you can’t pay.