Bankruptcy and Tax Resolution

What are Your Options?

If you are struggling financially, just to make ends meet, the firm understands that paying your owed back taxes may be the least of your concerns. However, the IRS does not agree with this sentiment. You need to handle this situation as soon as possible, or you may find yourself in a heap of trouble with the IRS. If you have back taxes that seem impossible to pay off, contact an attorney today to discuss your options.

Don't live in fear of the IRS. If you meet this problem head on, the legal team may be able to help you reach a resolution that is better than you hoped for. You may be surprised to learn that there are several options available to you when trying to resolve your taxes. The Installment Agreement Program helps you set up a monthly payment to the IRS to slowly chip away at the amount that is owed. This can be a good option if you can't afford to pay the full sum at once.

However, working with the IRS can be extremely intimidating. In these instances, it is always best to have legal representation fighting on your side. If you meet certain IRS requirements, you may qualify for an Offer in Compromise. This option discharges a large part of the money owed in exchange for a smaller one-time payment. This is a great option to choose if you qualify. However, the application process can be confusing, and if it not filed properly, your application will be denied.

Scams and Frauds

You've probably seen advertisements like this: "We can settle your tax debt for less than you owe!" or "Let us reduce your tax debt!" Maybe you've considered going to a tax relief company. Be careful. According to the Federal Trade Commission (FTC), tax relief companies are more trouble than they're worth. According to the FTC, just one fraudulent company is able to collect millions of dollars from Americans already suffering from financial hardship.

If you owe back taxes, you probably feel overwhelmed and hopeless – maybe even desperate. Tax relief companies prey on the desperation of debtors by pretending to offer then debt resolution solutions. Typically, scammers promise a tax resolution service, charge consumers several thousand dollars but never deliver on their services. Some tax relief companies not only scammed their customers but stole from them, too. In one instance, the company scammed consumers by charging up-front fees, then kept their credit card information and made unauthorized purchases and cash advances at a later time.

According to the FTC, the best way to resolve your back tax complications is to pursue a government program through the IRS. Companies that make unrealistic (and sometimes illegal) promises will only create more financial problems for you. Two years ago, the courts stopped a tax resolution scam that had taken more than $60 million from "distressed consumers," said the FTC. These types of companies are deceptive and dangerous.

If you're suffering from overwhelming debt, stay informed and don't let a fraudulent company take advantage of your financial circumstances. The IRS offers several legitimate programs that may be able to help you. If you are not comfortable pursuing these options by yourself, the FTC states that you may elicit the help of an enrolled agent, certified public accountant, or qualified attorney. If you have questions or concerns about your back taxes and the legal solutions offered by the IRS, call our firm today!

Dealing with the IRS

When you are dealing with the IRS, you need to be aware that they have many options available to them to get the money that is owed them. If they institute a wage garnishment against you, your financial struggles will become worse, as they can take up to 25% of your paycheck every time you get paid. At Price Law Group, the firm has over 20 years of experience helping clients work through their financial and legal issues.

If you are struggling under a wage garnishment, one option may be to file for bankruptcy. This puts an immediate end to all garnishments against you. While bankruptcy may seem like a last resort, there are many benefits of bankruptcy that you may want to consider. Speaking with an attorney from the firm can help you understand your options and find a tax resolution that gets you out from under the IRS' thumb, so you can go back to living a normal life. Many old tax debts could be completely forgiven.