IRS Tax Debt Relief in Pennsylvania
It's estimated that the Internal Revenue Service only receives about 80 percent of the taxes it's owed in a given year—and about $300 million a year goes unpaid. If you're one of those people who owes money to the IRS or the Pennsylvania Department of Revenue, the government will pursue you in an effort to collect your unpaid taxes. A Pennsylvania tax attorney can help you find a solution to your tax debt problem.
How the IRS Collects Unpaid Taxes
People who owe back taxes often mistakenly think that if they ignore the IRS for long enough, the problem will go away. Nothing could be further from the truth.
The IRS has several legal tools—and a lot of lawyers—at its disposal to help it collect unpaid taxes. If you owe back taxes to the government, all of the following may occur:
You'll receive a tax bill from the IRS and/or the Pennsylvania Department of Revenue, if you owe state taxes. The notice will explain how much you owe in back taxes, plus interest and fines.
Interest and late-payment penalties will continue to accrue if you do not pay your taxes in full immediately. These tax penalties are intended to penalize you for failing to pay your taxes by the due date.
If you're unable to pay your taxes in full, you can request an installment payment plan, which would allow you to make monthly payments until the balance is paid in full.
If full payment would cause a serious financial hardship, you may apply for an offer in compromise. The OIC allows you to settle your tax debt for less than the total amount you owe. The IRS charges a non-refundable application fee when you apply for an OIC, so it's important to make a fair offer that stands a good chance of being accepted. Your Pennsylvania tax lawyer can help analyze your financial situation and suggest an offer amount that is likely to be accepted.
You can also ask the government to consider a penalty abatement, where the IRS agrees to waive the penalties you've been charged. Penalty abatements are granted if you made an honest mistake when filing your taxes or didn't pay on time because you faced a serious financial crisis.
If you ignore the tax bill and other government correspondence, the IRS and Pennsylvania Department of Revenue will begin legal action to collect the unpaid tax debt.
Typically, that begins with a tax lien, which is a claim against your property (such as your home, car and other items of value). You will be unable to sell these items until the taxes are paid and the lien is lifted. A tax lien may also appear on your credit report, making it difficult or more expensive to receive a loan or line of credit.
If the tax lien still hasn't compelled you to pay your taxes, then the government may impose a tax levy, which allows them to seize and sell your property to repay your tax debt. This could include seizing your wages, Social Security payments, bank account, home, car, boat or other items of property. The government can also intercept any tax refunds you might be owed.
Work With a Pennsylvania Tax Attorney to Solve Your Tax Problem
If you've received a tax notice and are unable to pay your back taxes in full, you should immediately contact a Pennsylvania tax lawyer. Your tax debt attorney can:
- Review the letters and tax bills you've received from the IRS and Pennsylvania Department of Revenue
- Ensure that the government has correctly calculated your tax bill, plus interest and penalties
- Communicate with the government on your behalf
- Analyze your financial situation to help determine how much you could afford to pay in a single lump sum or in monthly installments
- Explain the advantages and disadvantages of installment payments and an offer in compromise, and help you determine which might be right for you
- Review your tax debt situation to see if you'd be eligible for any less common solutions, such as innocent spouse relief or tax discharge through personal bankruptcy
- Apply for tax relief solutions, such as penalty abatement or an offer in compromise, on your behalf
Find & Hire a Local Pennsylvania Tax Debt Attorney Today!
You may be tempted to deal with your tax debt problem yourself. But there are several advantages to hiring a Pennsylvania tax relief attorney.
A Pennsylvania tax debt lawyer will know the tax laws and understand how the government collects tax debt. Your lawyer will be familiar with all of the possible tax relief solutions and able to recommend the best option given your financial situation.
Your lawyer will also have the experience of having represented hundreds or thousands of clients in similar situations. That history and experience means your Pennsylvania tax debt lawyer will be able to answer all of your questions and clearly explain your legal options.
Finally, hiring a Pennsylvania tax relief lawyer should alleviate some of the stress of your tax debt problem. No more trying to decipher confusing tax bills and no more phone calls to the IRS. Your lawyer can deal with the government on your behalf.
Are you ready to solve your tax debt problems? Congratulations! Your next step: Finding and hiring a local Pennsylvania tax attorney. And—good news! Attorneys.com can help. Simply complete the form on this page or call us at 877-913-7222. We can quickly, confidentially connect you to a Pennsylvania tax debt lawyer in your area.