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IRS Tax Debt Relief in Colorado
Each year, federal and state governments collect only about 80 percent of the income tax owed to them. Taxpayers who owe the remainder—about $300 million in total—can expect the government to aggressively try to collect what it is owed. If you owe back taxes, a Colorado tax attorney can help you create a workable payment plan and may even be able to get a reduction in your tax bill.
There are several reasons to consider hiring a Colorado tax debt lawyer to help solve your tax problem. Your attorney will have spent years studying federal and Colorado tax laws, and will thoroughly understand all of the possible tax relief solutions. A Colorado tax lawyer will have experience representing hundreds or thousands of clients in situations similar to yours—and that expertise will be invaluable. Finally, government dealings can be stressful, and your lawyer can relieve some of that stress by working directly with the government on your behalf.
Potential Penalties for Unpaid Taxes
The Internal Revenue Service and the Colorado Department of Revenue have a number of ways by which they can try to persuade people to pay their tax debt. They also have legal tools that allow them to seize your property to satisfy your tax debt.
If you ignore tax notices from the federal and the Colorado state government, you can expect:
- To have interest charges and late-payment penalties added to your tax bill
- To have the government place a tax lien on your property, which will prevent you from selling that property until the tax debt has been paid
- To have your salary garnished and government payments (such as Social Security and tax refunds) intercepted to satisfy your tax debt
- To have your tax debt reported to the credit bureaus, resulting in a lower credit score
- To have your assets seized and sold, and the money from those sales put toward your tax debt
Instead, you and your Colorado tax debt attorney can work to come up with a proactive solution to your tax debt problem.
Options for Addressing Federal & Colorado Tax Debt
When you hire a Colorado tax relief attorney, your lawyer will review your tax bills to ensure that they are accurate. If there is any question as to their accuracy, your attorney can work with the government to get a corrected tax bill, help you file a tax appeal or apply for an offer in compromise, which allows you to settle your tax bill for less than the full amount you owe.
Once you have confirmed the accuracy of your tax bill, there are several options available to pay your tax debt. You and your Colorado tax relief lawyer should review your financial situation to determine which solution is best for you.
If they can afford it, many people prefer to pay their tax debt in a single lump-sum payment. That's because the IRS will add penalties and interest charges to your tax bill until it is paid in full. A lump-sum payment avoids these charges and relieves you of the burden of your tax debt.
If you don't have enough money saved to pay your full tax bill, you can ask the government for approval to make installment payments. You'd commit in advance to paying a specific amount toward your tax bill on a monthly basis. This allows you to spread out your financial obligation over several months or years. Realize, however, that interest and penalties will be added onto your tax debt until you've paid it off.
If paying your full tax debt would cause a serious financial hardship, the government may consider a penalty abatement (where fines and interest charges are waived) or an offer in compromise.
Your Colorado tax attorney can also determine if you're eligible for any other less common tax relief options. These would include discharge of your debt through personal bankruptcy.
Find & Hire a Colorado Tax Relief Attorney
Congratulations on deciding to deal with your tax debt problem! Your next step is to find and hire a local Colorado tax debt lawyer, and Attorneys.com can help you. Simply complete the form on this page or call us at 877-913-7222. We'll ask you a few questions, then we'll match you with an attorney in your area. Our service is fast, free and confidential.