Hiring Representation
At first glance, hiring representation may seem like it will only delay tax relief. It is just another layer between you and your goal – either tax debt resolution or IRS collection relief. In reality, having a knowledgeable attorney serve on your side may make the end result better for you. In case you did not know, the IRS has very specific rules and regulations that they must abide by when resolving back taxes or releasing levies, liens, and garnishments of taxpayers. A competent attorney will know these IRS guidelines, and the best way to try to get you the tax relief you are seeking.
An attorney will know what information is going to be needed early on in the process to prove your case. For example, did you know that releasing an IRS wage garnishment will require proving income and necessary living expenses? Did you know that getting an Offer in Compromise accepted will require all missing tax returns to be filed? An attorney knows these requirements and understands the nuance of the negotiations that work hand-in-hand with the evidence.
Lastly, having an attorney will allow you to focus on other aspects of your life while they are trying to get you the tax relief that you need.
Power of Attorney Instructions
If you decide to hire an attorney to help resolve your IRS tax problem, the first thing you will need to do is authorize the attorney to discuss your personal tax matter with the IRS. This can be accomplished by completing IRS Form 2848 and filing it with the IRS. Without an active Power of Attorney on file with the IRS, the IRS will refuse to discuss your case with anyone, but you.
The power of attorney requirement is a safeguard for you, because it prevents unauthorized individuals from discussing your personal tax matters with the IRS. Completing and filing the IRS form is easy. However, sometimes there is difficulty in the IRS processing the form. Sometimes, it can take weeks for the IRS to process. However, this delay can oftentimes be overcome by having your attorney file the Power of Attorney at the same time that he or she enters into negotiations with the IRS.
Evidence & Documentation
Before requesting tax relief from the IRS, you and your attorney will need to collect and review your current financial information. You will also need to provide your attorney with documentation that substantiates the financial information you communicated to him/her. The documentation may include paycheck stubs, current bank statements, and proof of payment for your mandatory expenses. After you send these documents to your attorney, they will be reviewed and analyzed before contact is made with the IRS. Once necessary income and expense information is supplied to your attorney, he or she will then present it to the IRS in the light most favorable to your case. This is the same process that is used for all forms of IRS tax debt resolution – such as Offer in Compromise, Installment Agreement, and Currently Not Collectible status – and is also used to end IRS collections.
Negotiation with the IRS
You and your attorney quickly gathered your financial information and have submitted it to the IRS. You are now hoping for a quick response from the IRS to resolve your tax debt problem. Unfortunately, a common misconception is that once your attorney contacts the IRS and submits your financial information that IRS collections will immediately end and/or your back tax issue will be immediately resolved. In fact, that rarely occurs – the IRS does not make decisions that quickly. Regardless of the type of resolution you are seeking, the IRS takes time to review your case and the evidence presented. The main goal of the IRS is to collect the debt owed and, consequently, it can take time for them to determine whether they can collect the debt owed more profitably via another method – i.e. continued collections. It can take the IRS anywhere from 2-6 weeks to respond for an Installment Agreement or Currently Not Collectible Status and up to 3 months for an Offer in Compromise. Oftentimes, the IRS will request updated financial information and documentation to verify that income has stayed the same. If the IRS believes that it they can collect more from a taxpayer than what was submitted, the IRS may delay the case and seek additional information or reject it.
Two of the most important things to remember when seeking IRS tax relief is that you must remain patient and must play by the IRS’s rules. Because the IRS provides options that are beneficial to the taxpayer, they have established a very strict set of standards and regulations that dictate the available forms of tax relief for a taxpayer. The IRS has established these regulations in order to ensure that these benefits are not abused.
By: roni deutch
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The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax attorneys who will fight the IRS on your behalf.
An offer in compromise is the method that allows individuals to settle IRS back taxes for less than the total amount originally owed. If you have ever heard the saying, "Settle for Pennies on the Dollar", this is the way that is used. It shouldn’t come to a surprise that this is most difficult way to settle with the IRS. The IRS has strict requirements to qualify for an offer in compromise. The offer in compromise tries to find what amount would work best for both the IRS and for the individual. This means the IRS will only settle for less if you can prove it will cost them more to try to get the money from you. This is a good choice if your total assets is less than the amount of back taxes you owe.