When You Can’t Pay Your Taxes: Expert Advice from Tax Lawyers
Paying taxes can be a stressful experience, especially when you find yourself unable to meet your tax obligations. Whether you’re dealing with unexpected financial difficulties or facing a significant tax bill, it’s important to know your options and seek guidance from professionals. In this blog, we’ll explore expert advice from a tax lawyer in Washington on what to do when you can’t pay your taxes.
Don’t Ignore the Problem
The worst thing you can do when you can’t pay your taxes is to ignore the problem. The IRS will not go away, and the longer you delay, the more penalties and interest you’ll accrue. It’s important to take action and communicate with the IRS as soon as possible.
Consider an Installment Agreement
One option for taxpayers who can’t pay their taxes in full is to request an installment agreement. This allows you to pay off your tax debt over time in regular, manageable payments. A tax lawyer can help you negotiate the terms of the agreement with the IRS and ensure that it’s the best option for your financial situation.
Explore an Offer in Compromise
Another option for taxpayers who can’t pay their taxes in full is to explore an Offer in Compromise (OIC). This is an agreement with the IRS to settle your tax debt for less than the full amount owed. However, the OIC process can be complex, and it’s important to have an experienced tax lawyer on your side to negotiate with the IRS and maximize your chances of success.
Request a Temporary Delay in the Collection
If you’re facing a temporary financial hardship and are unable to pay your taxes, you may be able to request a temporary delay in collection from the IRS. This can provide you with some breathing room to get back on your feet and make arrangements to pay your tax debt. A tax lawyer can help you make the request and negotiate the terms with the IRS.
Consider Bankruptcy
In some cases, bankruptcy may be a viable option for taxpayers who can’t pay their taxes. This can provide relief from tax debt and other debts, but it’s important to have a tax lawyer who is experienced in bankruptcy law to guide you through the process and ensure that you’re making the best decisions for your financial situation.
Review Your Tax Returns
Errors or omissions on your tax returns may have led to an inflated tax bill. A tax lawyer can review your returns to identify any issues and determine if you have grounds for an appeal or other tax relief.
Seek Penalty Relief
If you’re unable to pay your taxes due to circumstances beyond your control, such as a medical emergency or natural disaster, you may be eligible for penalty relief. A tax lawyer can help you apply for this relief and navigate the application process.
Consider Tax Settlements
In some cases, the IRS may be willing to settle your tax debt for less than the full amount owed. A tax lawyer can help you determine if you qualify for a settlement and negotiate with the IRS to achieve the best possible outcome.
Stay in Communication with the IRS
It’s important to stay in communication with the IRS throughout the process of resolving your tax debt. A tax lawyer can act as a mediator between you and the IRS, helping to ensure that all necessary information is provided and that deadlines are met.
Avoid Future Tax Debt
Once you’ve resolved your tax debt, it’s important to take steps to avoid future tax debt. A tax lawyer can provide advice on tax planning, ensuring that you’re taking advantage of all available deductions and credits, and developing a plan to meet your tax obligations in the future.
Conclusion
When you can’t pay your taxes, it’s important to take action and seek guidance from professionals. A tax lawyer can help you explore your options, unfiled tax returns, negotiate with the IRS, and ensure that you’re making the best decisions for your financial situation. Don’t ignore the problem, and remember that there are solutions available to help you get back on track.
