Owing the IRS and not responding to the IRS are two completely different sets of circumstances that any taxpayer needs to understand. The Internal Revenue Service may have its problems and it may be slow to react sometimes, but it won't forget. It is in your best interests to deal with any IRS action as quickly as possible.
An offer in compromise, when accepted by the Internal Revenue Service, enables a person to fully resolve a tax debt through paying some, but not all, of the total debt amount. When applying for an offer in compromise with the IRS, among the things a person is generally required to provide along with their application are certain payments.
It is pretty widely known that good legal advice can be a very important thing to have after being assessed a tax debt by the Internal Revenue Service. A federal tax debt is a very serious thing that can have massive impacts on a person’s life if not dealt with in the right way given the particular circumstances. Skilled tax attorneys can help taxpayers with navigating these very sensitive situations.
Last week on this blog, we talked about First Time Penalty Abatement relief. As one can see in our discussion in that post, that type of Internal Revenue Service tax penalty relief is aimed towards a very particular set of circumstances. The tax penalty relief type that we will be discussing today, reasonable cause relief, can cover a wide range of different types of circumstances.
As anyone will tell you, when it comes to taxes, it is all in the details. The information you provide has to be accurate and, to the best of your knowledge, truthful. Even the smallest mistake can have massive repercussions in the form of a tax audit or a tax lien. No one wants to deal with these things, but if you are involved in an audit or if a lien applies to you, then you must deal with it swiftly and accordingly.
Among the things a person could face in connection to a tax problem is a tax penalty. Now, in some circumstances, a taxpayer may be able to receive relief from such penalties. There are multiple forms of tax penalty relief that the Internal Revenue Service can grant taxpayers. Each particular type has its own particular set of eligibility requirements. So, many things can impact whether a taxpayer would be able to qualify for one of these methods. Experienced tax lawyers can advise taxpayers who are facing tax penalties on whether they could be eligible for one of the IRS’s tax penalty relief methods and can assist them with the process of pursuing penalty relief.
One of the things a person with a tax debt can find themselves facing is a tax lien from the Internal Revenue Service. It is important to not confuse liens with one of the other types of tax collection mechanisms the IRS has, levies.