Alina VenezianoAttorney Alina VenezianoTax Debt Attorney & CPA Team Lead
Nick OberheidenAttorney Nick OberheidenTax Debt Attorney Team Lead
Dealing with tax debt owed to the Internal Revenue Service (IRS) can be a daunting experience for individuals and businesses alike. Many find themselves owing more than they can realistically repay, leading to significant stress and uncertainty. If you’re facing this challenging situation, understanding your options is critical to avoid severe repercussions. The most proactive step you can take is to consult with a seasoned Tax Debt Lawyer. These legal professionals specialize in navigating the complexities of IRS tax debt and can guide you toward the most favorable resolution based on your specific circumstances.
Ignoring IRS tax debt or attempting to manage it without professional guidance can be exceptionally costly. Both failing to pay and underpaying taxes can trigger intrusive IRS audits and investigations. The IRS possesses substantial enforcement powers, including wage garnishments, liens, and levies. Furthermore, if the IRS suspects intentional underpayment or evasion, they can collaborate with the U.S. Department of Justice (DOJ) to pursue federal criminal tax charges, adding an even greater layer of risk and severity to the situation.
How a Tax Debt Lawyer Strategizes Your IRS Tax Resolution
Engaging a knowledgeable tax debt lawyer is paramount when dealing with the IRS. These attorneys act as your advocate, helping you understand your rights and strategically navigate the complex IRS procedures. A tax debt lawyer works proactively to resolve your tax obligations, aiming to secure both the necessary time to address the debt without triggering aggressive enforcement actions and to ensure you don’t overpay. Depending on the specifics of your case, a tax debt lawyer might employ various strategies, including:
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Amending Tax Returns and Filing Delinquent Returns: If your tax debt stems from inaccuracies in your filed tax return or a failure to file altogether, rectifying these issues is the first crucial step. A tax debt lawyer can assist in preparing and submitting amended returns to correct overstatements or understatements of your tax liability. If you’ve underreported your income or overstated deductions, bringing your filings current is essential to accurately determine the true amount of your tax debt. Addressing these filings proactively can prevent further penalties and demonstrate your commitment to resolving the issue.
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Voluntary Disclosure to the IRS: For situations involving the willful underreporting or non-payment of federal taxes, simply amending a return might not suffice. In these more serious cases, a tax debt lawyer might recommend a voluntary disclosure to the IRS. This strategic legal maneuver is designed to proactively address past tax violations and mitigate the risk of a criminal tax fraud investigation. Voluntary disclosure demonstrates good faith and cooperation with the IRS, often leading to more lenient resolutions compared to waiting for the IRS to initiate enforcement actions. A tax debt lawyer will carefully guide you through this sensitive process, ensuring all disclosures are accurate and strategically presented.
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Tax Appeals for Disputed Liabilities: If you believe the IRS has made an error in calculating your tax liability, a tax debt lawyer can champion your right to appeal. The IRS Independent Office of Appeals provides a forum for taxpayers to challenge IRS decisions. A tax debt lawyer will meticulously prepare your appeal, presenting compelling arguments and evidence to contest the assessed liability. Should the appeal process with the IRS not yield a satisfactory outcome, your lawyer can further escalate the matter by taking your tax dispute to the federal court system, advocating for your rights at every stage of the legal process.
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Negotiating IRS Installment Agreements: For many taxpayers facing tax debt, the most practical solution is to establish a structured payment plan. A tax debt lawyer can negotiate an installment agreement with the IRS, allowing you to pay off your tax debt over time in manageable monthly installments. This prevents immediate collection actions like wage garnishments or asset seizures, providing crucial financial breathing room. Importantly, a skilled tax debt lawyer can also negotiate for potential reductions in penalties and interest as part of the installment agreement, further easing the financial burden.
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Offers in Compromise (OIC) for Tax Debt Reduction: In situations where taxpayers cannot realistically repay their full tax debt, an Offer in Compromise (OIC) presents a viable path to resolution. An OIC is an agreement with the IRS allowing you to settle your tax debt for a significantly lower amount than what is originally owed. A tax debt lawyer can assess your eligibility for an OIC based on factors such as your financial hardship (doubt as to collectability), disputes about the actual tax liability (doubt as to liability), or circumstances where an OIC would promote effective tax administration. Successfully navigating the OIC process requires meticulous preparation and negotiation, skills a tax debt lawyer brings to the table.
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Seeking IRS Penalty Abatement: The IRS imposes various penalties for non-compliance, which can significantly inflate your tax debt. However, the IRS also offers penalty relief programs, particularly for taxpayers with a history of compliance who made a one-time mistake. A tax debt lawyer is well-versed in these programs and can assess your eligibility for penalty abatement. They will then advocate on your behalf to have penalties waived or reduced, providing significant tax relief.
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“Currently Not Collectible” (CNC) Status: If you are facing temporary financial hardship making it impossible to pay your tax debt now, but expect your situation to improve, seeking “Currently Not Collectible” (CNC) status might be the right strategy. A tax debt lawyer can help you apply for CNC status with the IRS. If granted, the IRS will temporarily halt collection efforts, providing you with critical time to improve your financial standing without the immediate threat of levies or garnishments. While interest and penalties continue to accrue during this period, CNC status prevents aggressive collection actions.
Nick Oberheiden
These strategies represent just a portion of the comprehensive options available to resolve tax debt. When you consult with a tax debt lawyer at Oberheiden P.C., you’ll receive personalized guidance tailored to your unique circumstances. Our experienced attorneys take the time to thoroughly understand your situation and explore all possible avenues for resolution, ensuring you make informed decisions every step of the way.
Rely on Our Highly Experienced Tax Debt Legal Team
Our team includes seasoned professionals with extensive experience in tax law and IRS procedures:
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara
Federal Appeals Attorney
Jennifer W. Corinis
Litigation Counsel
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen
Former Supervisory Special Agent (FBI)
A Step-by-Step Approach to IRS Tax Debt Resolution
When you engage our firm to assist with your tax debt, we follow a structured, client-focused approach to develop a tailored resolution strategy:
1. Accurate Tax Debt and Interest Assessment
Our initial step involves a comprehensive review to ascertain the precise amount of tax and interest you rightfully owe. It’s crucial to ensure accuracy, preventing both underestimation and overpayment. We meticulously examine your income records and tax filings to validate reported figures and identify any discrepancies.
2. Identifying Applicable Tax Penalties
Beyond the base tax and interest, we determine all applicable penalties levied by the IRS. This provides a complete and transparent picture of your total financial obligation. Understanding the penalty structure is vital as penalties accrue rapidly and continue to escalate until they reach statutory limits. Engaging a tax debt lawyer early in the process is therefore essential to mitigate penalty accumulation.
3. Realistic Financial Capacity Evaluation
Our team collaborates closely with you to realistically assess your current financial capacity. This involves a thorough review of your income, expenses, and assets. This detailed financial profile is critical for evaluating your eligibility for various tax relief options, such as Offers in Compromise or “Currently Not Collectible” status, and for formulating a sustainable repayment plan.
4. Comprehensive Options Analysis
Based on our assessments, we present a comprehensive overview of all available tax resolution options. Leveraging our team’s prior experience as DOJ prosecutors and IRS Criminal Investigation Special Agents, we provide insightful risk assessments. Our strategic guidance focuses on proactively mitigating both civil penalties and potential criminal tax enforcement actions, ensuring your approach is both compliant and strategically sound.
5. Direct IRS Engagement and Advocacy
With a well-defined strategy in place, we directly engage with the IRS, or the IRS Independent Office of Appeals, on your behalf. We handle all communication, negotiations, and procedural aspects, shielding you from direct and often stressful interactions with the IRS. We keep you fully informed at every stage, providing clear explanations and collaborative decision-making throughout the resolution process.
FAQs: Partnering with a Tax Debt Lawyer for IRS Issues
When is the Right Time to Hire a Tax Debt Lawyer?
Engaging a tax debt lawyer is advisable whenever you encounter a disagreement with the IRS regarding your tax liability or face tax debt exceeding your comfortable repayment capacity. In both scenarios, proactive legal intervention is beneficial. A tax debt lawyer can assess your situation and guide you toward the optimal course of action tailored to your specific needs and financial circumstances.
Can a Tax Debt Lawyer Reduce My Tax Debt?
In numerous situations, a tax debt lawyer can indeed help taxpayers legally reduce their overall tax debt. Through strategies like Offers in Compromise, penalty abatement, and challenging incorrect assessments, there are legitimate avenues to minimize your financial obligations to the IRS. During your initial consultation with a tax debt lawyer at Oberheiden P.C., we will meticulously evaluate your case and clearly outline all potential debt reduction strategies applicable to your situation.
Does the IRS Negotiate Tax Settlements?
Yes, the IRS does engage in settlement negotiations with taxpayers. Settlement, often through an Offer in Compromise, can be a highly effective method for resolving tax debt, avoiding more aggressive collection actions or protracted disputes. If pursuing a settlement is a desirable outcome for you, our experienced tax debt lawyers can expertly navigate the negotiation process with the IRS on your behalf.
Can I Pay My Tax Debt Through an Installment Plan?
The IRS frequently utilizes installment agreements to facilitate tax debt repayment. If you require extended time to fully satisfy your tax obligations, negotiating an installment agreement or payment plan with the IRS is a prudent step. It is crucial to consult with a tax debt lawyer to structure and negotiate favorable installment terms. Simply making partial payments without a formal agreement is strongly discouraged as it can lead to penalties and increased IRS scrutiny.
What Are the Costs of Hiring a Tax Debt Lawyer?
The fees associated with hiring a tax debt lawyer vary depending on the complexity of the case and the law firm’s fee structure. At Oberheiden P.C., we strive to provide competitive and transparent rates in line with firms of comparable expertise and experience. Our value proposition centers on delivering cost-effective solutions. In tax debt resolution matters, our goal is to consistently help clients achieve savings that exceed our legal fees, making our services a financially sound investment in resolving your tax issues.
Alina Veneziano
Schedule Your Free Consultation with a Tax Debt Lawyer Today
If you are seeking expert guidance and representation in resolving IRS tax debt, we encourage you to contact Oberheiden P.C. Call us today at 888-680-1745 or reach out online to schedule a complimentary and confidential consultation with a knowledgeable tax debt lawyer. Let us help you navigate the complexities of IRS tax debt and achieve the most favorable resolution possible.
