Tax Laws 101: How to Deal with Tax Debt

a person doing their taxes

Are you dealing with overwhelming tax debt? If so, there are different options available that can help you achieve tax debt relief. Since tax laws are as complicated as they seem, our Tampa tax law attorneys answer some of the most common questions about dealing with overwhelming tax debt. Whether you are struggling with a complicated tax problem, are subject to an IRS audit, or are under suspicion for tax fraud, our team is here to help you.

What Are My Options If I Have Tax Debt?

Owing taxes is a heavy burden to bear, so it is best to deal with the situation as quickly as possible. Two of the most common options to deal with tax debt include installment agreements and an offer in compromise.

An installment agreement allows you to repay the money you owe to the IRS in installment payments. However, this option does come with interests of up to ten percent, along with other penalties. An experienced tax attorney can analyze your situation and help you determine which type of installment agreement you qualify for.

An offer in compromise allows qualifying individuals with unpaid tax debt to negotiate a settled amount that is less than the total owed. An offer in compromise helps taxpayers clear their debt. However, there are specific requirements an individual must meet to qualify.

Learn more about how an offer in compromise and installment agreements works in our blog posts.

How Can I Stop IRS Wage Garnishment?

If you owe taxes to the IRS, they may garnish part of your wages if you don’t respond to their payment request. What this means is that the IRS will inform your employer of the taxes you owe so that a part of your paycheck will automatically go towards your tax debt balance.

Wage garnishments can be a heavy financial burden, so the best way to put an end to an IRS wage garnishment is to speak to a tax attorney. An attorney can help you set up a repayment plan or settle your tax debt for less than what you owe. At this point, it will be extremely valuable to have a tax attorney guide you through the process to prevent other financial burdens in the future.

Can the IRS Take My Refund?

Yes, the IRS can hold your tax refunds if you owe taxes. In fact, the IRS can take your refund even if you have an installment agreement. They can continue to hold your refund until the tax is paid in full.

Can I Avoid Penalties When Paying Back Taxes?

If you want to avoid paying additional penalty fees to the IRS, you may qualify for penalty abatement. A tax attorney can write to the IRS to request a penalty abatement on your behalf. You will need to demonstrate that you have reasonable cause to believe that your penalties should be waived.

How Can a Tax Attorney Help Me?

With a tax attorney on your side, you will have the experience and knowledge you need to solve your tax problem as efficiently and effectively as possible. Tax laws are complex, so having an attorney on your side can help you avoid more problems with the IRS. Plus, they can help you understand various laws and regulations related to your circumstances.

For over 20¬†years, our team at Law Offices of Darrin T. Mish, P.A. has years of experience helping individuals resolve their tax problems. We have a proven track record of meeting our client’s needs and helping them every step of the way. If you have additional questions about dealing with tax debt or want to look for a course of action, get in touch with our team today.

Contact our Tampa tax lawyers today at (813) 295-7648 to schedule a case review!

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