When your taxes accumulate for whatever reason, you find yourself in a legal tangle that cannot be untangled unless you are familiar with the tax laws. Only a tax professional or a Colorado tax debt attorney can help you settle back taxes. Given below are 5 tips by a Colorado tax debt attorney to help you do so.
1. Installment Agreement – The IRS has an Installment agreement for tax settlement. It is a common way in which you can settle taxes by repaying taxes in installments. When the payments are made times, you can avoid the backlash of the revenue department and be free of any repercussions.
2. Part Payment – This type of agreement is for those people who cannot adhere to the prescribed monthly installments. It allows for lower payment amounts and in time, the taxes may be reduced.
3. Currently Uncollectible – An IRS tax debt attorney can negotiate on your behalf and have you determined as Currently Uncollectible. This will halt all collections against you till your financial position improves.
4. Statute of Limitations – If you do nothing for 10 years and the IRS does not collect within this period, you are free of all tax debts. An IRS tax debt attorney will advise you to combine step 3 with this step so that you do not pay any taxes at all.
5. Penalty Abatement – When back taxes accumulate, so do penalties and interest. Your attorney can negotiate with the IRS and help you get penalty abatement so that the accrued penalty is abated and you need to pay only the taxes.
There are numerous parts of the law that you may not be aware of. IT is best to hire a Colorado tax debt attorney who can negotiate and file returns on your behalf.
