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IRS Tax Debt Relief in Alabama
If you owe back taxes to the Internal Revenue Service or Alabama Department of Revenue, your credit can be damaged, your paycheck can be garnished and your property can be seized and sold. However, an Alabama tax attorney can help you come up with a workable solution to pay your tax debt.
Penalties for Federal & Alabama Tax Debt
If you fail to pay your federal and Alabama taxes by the date they are due, the government will take a series of actions intended to penalize you for your late or missed payment. It will also attempt to collect the tax debt. Among the steps the government may take:
- Send you a tax notice, explaining how much you owe including interest charges and late-payment penalties. These tax penalties will continue to accrue until your balance is paid in full.
- Secure a tax lien against your property, making it impossible to sell the assets until your tax debt has been paid.
- Report the tax lien to the credit bureaus, which will include the information on your credit report.
- Garnish your paycheck and seize any tax refunds to which you may be entitled. The money will be applied to your unpaid taxes.
- Impose a tax levy on your property, giving the government the right to seize your bank account, car, home and other items of value, then sell these assets to pay your tax debt.
Tax Debt Payment Options
If you are unable to pay your entire tax bill in a lump-payment, there are some other options. Your Alabama tax debt attorney can review these with you and analyze your finances to help determine which solution is best for you.
One of the most common solutions is an installment payment plan, which allows you to pay your tax debt in small monthly payments. During that time, interest and penalties will still be added to your tax bill, so it's usually in your best interest to make the largest payments you can possibly afford. This will allow you to quickly pay down your tax debt.
If there is some question as to the accuracy of the government's tax bill, you have a couple of options:
- You and your Alabama tax debt lawyer can submit evidence to the government in an effort to get the bill corrected. If you think the tax law has been improperly interpreted or applied, you can file a tax appeal.
- You can also apply for an offer in compromise, which—if accepted—allows you to settle your tax bill for less than the full amount. The IRS will consider an OIC if there's doubt as to whether you are liable for the entire tax bill, if the IRS thinks it will be unable to collect the entire bill or if paying the entire bill would cause a serious financial hardship.
You may be eligible for other, less common tax relief solutions. Your Alabama tax attorney can review the specifics of your situation to determine whether you qualify for other tax relief options.
Find & Hire an Alabama Tax Relief Attorney
Taxes and tax law can be confusing, and if you make a mistake it can be costly. That's why it pays to hire an Alabama tax relief lawyer to guide you through the process of paying your tax debt.
Ready to hire a local Alabama tax lawyer to help tackle your tax debt problem? Attorneys.com can help you find and hire a local lawyer. Simply complete the form on this page or call us at 877-913-7222. We'll help you find a local Alabama tax relief attorney today.