IRS Collections Attorneys
Filing and paying federal tax returns is a critical obligation for all Americans. When you fall behind, the IRS begins a structured collection process that can quickly become overwhelming. The collection process starts with notices and letters sent to individual taxpayers, businesses, tax-exempt organizations, trusts, and estates—but it rarely ends there.
The penalties for not filing taxes or underpaying can be substantial and continue to grow over time. This is when having an experienced IRS collection lawyer by your side becomes invaluable. A knowledgeable IRS tax collection lawyer can help you navigate the complex process, understand your rights, and explore options for resolving your tax debt in the most favorable way possible.
IRS Penalties and Interests
The financial consequences of tax issues can be severe and compound quickly:
- Taxpayers with unfiled returns face a penalty of 5 percent of the tax owed for each month, up to a maximum of 25 percent.
- Those who file but don’t pay the required amount will be charged with failure-to-pay penalties.
- Beyond penalties, the IRS is legally required to charge interest on unpaid tax for each day it remains unpaid.
These penalties and interest can dramatically increase your original tax debt. What might start as a manageable amount can quickly grow into a significant financial burden without proper intervention. An IRS collection lawyer can help you understand these charges and develop strategies to minimize their impact.
The IRS generally has a 10-year collection statute—meaning they can pursue your unpaid balance for a decade after your tax return is filed. Understanding this timeline and how it affects your specific situation is crucial, which is why working with an IRS tax collection lawyer can make a significant difference in the outcome of your case.
The Collection Process
Summons
When the IRS lacks sufficient information to determine your tax liability, they may serve a summons requiring you to meet with an IRS field officer. During this meeting, you may need to provide financial records so they can prepare or verify a tax return. An IRS collection lawyer can attend this meeting with you, ensuring your rights are protected throughout the process.
Federal Tax Lien
The IRS can establish a legal claim against all your current and future property, including your home, vehicles, bank accounts, and wages. This powerful collection tool gives the government significant leverage in collecting unpaid taxes. Having an IRS tax collection lawyer on your side can help you understand the implications of a tax lien and explore options for resolving it.
Notice of Federal Tax Lien
Once the IRS places a lien on your property, they file a Notice of Federal Tax Lien to establish priority of their claim against other creditors. This public notice can damage your credit score and make it difficult to sell assets or obtain financing. An experienced IRS collection lawyer can advise you on how to address this situation and potentially have the lien withdrawn or subordinated.
Levy
If your tax debt remains unpaid, the IRS will provide 30 days’ notice that they intend to seize your property or rights to property. A levy can affect:
- Bank accounts
- Social security benefits
- Wages (through garnishment)
- Proceeds from property sales
A levy is one of the most aggressive collection actions, but an IRS tax collection lawyer can help you prevent or release levies through various legal remedies.
IRS Collection Alternatives
When facing tax debt, it’s important to understand that you have options. The IRS offers several alternatives to help taxpayers manage and resolve their obligations. Instead of enduring enforced collection actions, you can explore various paths to settle your tax debts with the guidance of an IRS collection lawyer:
Pay in Full
The most straightforward option is to pay your tax debt completely. While this may not be feasible for everyone facing financial challenges, it immediately stops all IRS collection activities and prevents further penalties and interest from accruing. An IRS tax collection lawyer can help determine if this is your best option based on your financial situation.
Installment Agreement
When paying in full isn’t possible, an installment agreement allows you to pay off your debt over time in smaller, more manageable amounts. Different types of installment agreements exist based on the amount owed and your financial circumstances. An IRS collection lawyer can help you navigate the application process and negotiate terms that work within your budget.
Offer in Compromise
An Offer in Compromise (OIC) is a settlement option that allows you to resolve your tax debt for less than the full amount owed. This program is available to taxpayers who can demonstrate that paying the full amount would cause undue financial hardship. The application process is complex and has specific eligibility requirements, making the assistance of an IRS tax collection lawyer particularly valuable.
Currently Not Collectible Status
If you’re experiencing significant financial hardship and simply cannot afford to pay anything toward your tax liability, you may qualify for Currently Not Collectible (CNC) status. This designation temporarily suspends IRS collection activities until your financial situation improves. An experienced IRS collection lawyer can help you prove your financial hardship and secure this important protection.
Innocent Spouse Relief
If you filed a joint tax return with your spouse who was solely responsible for tax understatements or underpayments, you may qualify for innocent spouse relief. This protection could relieve you of responsibility for the tax, interest, and penalties related to your spouse’s actions. The requirements for this relief are specific, and an IRS tax collection lawyer can evaluate your eligibility and guide you through the application process.
Taking Control of Your Tax Situation
No matter what your circumstances are, understanding the IRS collection procedures and exploring all available options is crucial when dealing with tax debt. With the right strategy, professional guidance, and patience, you can work toward resolving your tax issues and regaining financial stability.
An IRS tax collection lawyer brings invaluable expertise to your situation by:
- Evaluating your specific circumstances and identifying the best resolution options
- Representing you in communications and negotiations with the IRS
- Ensuring your rights are protected throughout the collection process
- Helping you understand complex tax laws and procedures in plain language
- Developing a customized strategy to resolve your tax debt in the most favorable manner
Don’t face the IRS alone. Consulting with an experienced IRS collection lawyer can make the difference between continued financial stress and finding a path toward resolution and peace of mind. Reach out today to discuss your situation and take the first step toward addressing your tax challenges.
CLIENT TESTIMONIALS
Being selected for an audit is arguably one of the worst things that could happen to a small business owner, or at least that’s how I felt.
It felt a lot less stressful when I hired Jess to communicate with the IRS on my behalf. Her extensive knowledge of tax law was evident when she would educate not just me but also the RA on the proper law.
She went the extra mile every day – with driving to me, essentially holding my hand through an interview, and making sure all responses to the RA were effective.
If you get audited – I strongly recommend having her by your side.
– Parul G.
As a small business owner, I had an enormous amount of questions. I needed to know how to book keep, claim deductions and credits, navigate selling online, providing services in different jurisdictions, and filing quarterly taxes.
A small business requires an enormous attention to detail and Jessica helped me be meticulous in strategizing my tax landscape and know the necessary laws and regulations.
I highly recommend her to anyone with tax questions.
– Nate W.
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GET IN TOUCH
If you are dealing with IRS collection actions and require the services of a Maryland tax collections attorney, Jessica Ledingham, a skilled tax attorney in Baltimore, can offer the expert guidance and representation essential to effectively navigate all IRS collection efforts.
Take the crucial first step towards addressing your IRS tax collection action issues. Contact Ledingham Law tax collections attorneys today at (240) 673-6869.
