IRS Tax Debt Relief in Arizona
If you owe back taxes to the Internal Revenue Service or the Arizona Department of Revenue, the government can take drastic legal action to collect its money. However, an Arizona tax attorney can help you negotiate a payment plan with the government and may be able to get your tax bill reduced.
How an Arizona Tax Debt Attorney Can Help You
Your Arizona tax lawyer can:
- Examine your tax bill and work with the government to correct any mistakes
- Review your financial situation to help determine how much you can afford to pay the government in one lump-sum or in smaller monthly payments
- Explain the federal and Arizona tax debt payment options and discuss the advantages and disadvantages of each solution
- Help you decide which option is best for you
- Communicate with the IRS and Arizona Department of Revenue on your behalf
- Relieve you of the stress of having to deal with government, and act as your guide and advisor in solving your tax debt problem
Federal and Arizona tax laws are confusing. When you hire an Arizona tax debt lawyer, you're hiring someone who's spent years studying the tax laws and representing clients in situations similar to yours. That expertise helps ensure your Arizona tax relief attorney will work on your behalf to find the best possible tax relief solution for you.
How the Government Collects Unpaid Tax Debt
Once you miss the deadline for paying your taxes, the government will begin to take a number of actions designed to punish you for your missed payment and collect the money it's owed.
First, you'll receive a tax bill showing what you owe. This bill will probably include interest charges and fines for late payment. These tax penalties will continue to accrue until you've paid your tax bill in full. The penalties add up quickly, so if your tax bill is otherwise accurate and if you can afford to pay it in its entirety, you'll probably want to do so.
If you ignore the tax bill, the government will continue to take steps to collect its money. It can:
- Impose a tax lien on things you own of value, such as real estate and motor vehicles. A lien is a legal claim on the property, and you'll be unable to sell the property until your back taxes are paid and the lien is cleared.
- Garnish your wages and Social Security payments, plus seize any tax refunds to which you might be entitled. This money will be applied to your unpaid taxes.
- Notify the credit bureaus, which can damage your credit rating and make it more difficult or expensive to get a mortgage, loan or new credit card.
- Seize your property and sell it, and apply the proceeds to your tax debt.
If you ignore tax bills, all of these things are likely to happen. But your Arizona tax relief lawyer can communicate with the government and help you come up with a plan to pay your back taxes.
Dealing with Your Tax Debt
There are several ways in which you can deal with your tax debt.
If there is no dispute as to whether you owe the taxes, one of the most common options is an installment payment plan. This allows you to make monthly payments to the government until your tax bill is paid off. It's important to understand that interest charges and penalties may continue to be added to your account until the bill is paid. The government may also put a tax lien on your property.
If paying your tax bill would cause serious financial hardship, there are a few options and your Arizona tax attorney can help you decide which is best for you.
You can ask the government for a penalty abatement, which erases some or all of the tax penalties that have been added to your account. If your debt is at least three years old, you may be able to discharge it through personal bankruptcy. Finally, the government may consider what is known as an offer in compromise, which allows you to settle your tax debt for less than the full amount that is owed.
Your Arizona tax lawyer may also present you with other less common solutions if they are appropriate for your situation.
Find & Hire an Arizona Tax Relief Lawyer Today
Are you ready to start dealing with your tax debt problem? Congratulations! The next step is finding and hiring a local Arizona tax lawyer, and Attorneys.com can help you. To get started, complete the form on this page or call us at 877-913-7222. After answering a few simple questions, we'll connect you with an Arizona tax debt lawyer in your area.