Serious Tax Problems & How to Solve Them
There are a number of serious tax problems facing many Americans today, all stemming from unpaid debts owed to the IRS.
If you have significant tax debt and you've ignored the problem, or simply don't have the money to resolve it, then you are putting yourself at risk.
The IRS uses a variety of increasingly aggressive methods to penalize you and collect the money they claim you owe, including:
- Taking up to 80% of your work paychecks until your debt is repaid.
- Hitting you with additional penalties that can sometimes amount to up to 25% of the total amount owed.
- Charging you interest on the amount you owe, so that your debt increases every day that you don't pay.
- Filing a federal tax lien against you, effectively stopping you from being able to obtain financing of any kind.
- Levying your bank accounts to take funds directly from your checking, savings or even your retirement accounts.
- Fining you up to $10,000 (in addition to other penalties) for more serious actions, such as tax evasion or a business's failure to pay taxes withheld from employees' paychecks.
Below, we'll cover each of these common tax problems in greater detail, along with the potential solutions that can be achieved by using a qualified tax professional.
6 Tax Problems & Solutions
Inability to Pay Your Tax Debt One of the most common tax problems is simply being unable to pay the taxes that you owe to the IRS. This is a stressful and frustrating situation to be in, and unfortunately it can result in a number of additional problems that will hurt your finances even further.
- Solution: Offer in Compromise. This is a program for those who cannot afford to pay their tax debt in full. With the help of a skilled tax professional to negotiate on your behalf, you may be able to settle your debt for considerably less than what you owe.
- Solution: Penalty abatement. An experienced tax professional may be able to reduce your penalties, potentially reducing your total debt considerably. Your attorney will take the necessary steps to prove that you meet at least one of the three requirements to qualify for abatement: reasonable cause, administrative waivers, or a mistake by the IRS.
- Solution: Wage garnishment release. A tax lawyer can put a hold on the status of the garnishment, and will negotiate with the IRS on your behalf to determine the best settlement for your financial situation.
- Solution: Lien/Levy Release. With professional representation, you may be able to release the federal tax lien or other levies. Depending on your situation, your tax professional will work to reverse these IRS actions so that you can address your tax debt problems.
- Solution: Payroll tax representation. An experienced tax professional is essential in this case, as you will need professional representation to negotiate with the IRS and come to an agreement that protects you, your business and your assets.
- Solution: State tax disputes & settlement negotiations. Be sure to work with an attorney who has successfully represented other taxpayers in connection with their state tax problems and can provide a variety of solutions, such as a state tax audit, settlement negotiation, mediation hearings or payment plans.
Find a solution to your specific tax problemsUnfiled Tax Returns
Not filing required tax returns can be construed by the IRS as tax evasion, considered a criminal act. This is a very serious matter, punishable by a fine of $10,000 and one year in jail for each year not filed. However, the IRS would much rather get taxpayers back into the system than prosecute the average person who makes a mistake. Regardless of why you have unfiled tax returns, the first step to resolving your tax problem – before the IRS will consider any payment plan or tax settlement offer – is to become compliant by filing all your delinquent tax returns. Although this may seem like an overwhelming task, as a leader in tax relief services, US Tax Shield can help you take control of your tax problems and resolve them once and for all, so you can move forward with your life.
Our highly skilled tax professionals and attorneys specialize in all the tax relief cases listed above, including IRS appeals, offers in compromise, penalty abatement, innocent spouse, wage garnishment releases and many more.
If you have received threatening collection notices, or are already facing action by the IRS, contact US Tax Shield today. We will listen to your problem and determine the best solution for your situation. Our priority is to get the IRS off your back, safeguard your assets, and save you money.
Call us immediately at 877-829-3535 for a free 15-minute consultation with one of our senior tax advisors.