Lancaster IRS Tax Debt Lawyers
Few debts produce more stress than owing money to the IRS. If you have unpaid federal income taxes, the IRS could potentially file a federal tax lien against your property and ultimately seize your assets to pay your balance. And unlike many unsecured debts, you generally cannot discharge recent income tax debts through the bankruptcy process.
A Lancaster IRS tax debt lawyer can sit down with you and review your options for seeking relief in these situations. At Wadhwani & Shanfeld, we have helped thousands of clients throughout Los Angeles County and southern California negotiate with the IRS. You do have legal options for repaying a tax debt over time. And in some cases, you may even be able to get the IRS to accept less than the full amount owed.
What Happens If You Cannot Pay Your Taxes?
Obviously, it is always ideal to pay your income taxes on time. This not only avoids potential collection activities. It also reduces the total amount you will pay, since paying late means incurring interest and penalties. But for many Lancaster debtors, that is simply not an option given their current financial state.
So what are your options if you cannot pay your full tax bill now? The IRS actually provides several possible solutions:
- Short-Term Payment Plans: If you can pay your full tax bill within 180 days, you can set up a short-term payment plan on the IRS website. There is no fee to apply for these payment plans, but you will continue to pay any accrued penalties and interest until you are paid up in full.
- Long-Term Payment Plans: If 180 days is not enough time, you can apply for a long-term payment plan. There are fees to apply for such plans, but you can potentially take up to 84 months to pay your bill. But again, you will continue to incur fees and penalties.
- Offers in Compromise: If you are looking to settle your tax debt for less than the full amount owed, you can attempt to negotiate an offer in compromise. You must prove that you lack sufficient income to pay your tax bill or that doing so would create a “financial hardship.” If you meet these qualifications, the IRS will generally approve an offer that represents the most the agency would expect to collect from you within a “reasonable time.”
- Currently Not Collectible: If you are unable to pay your basic living expenses, much less your taxes, the IRS may agree to place your account in “currently not collectible” status. This will not eliminate your debt, but it will suspend IRS collection activities.
Contact Wadhwani & Shanfeld Today
You should never deal with the IRS on your own. There are a lot of complicated rules governing the tax code and the options listed above for dealing with non-payment. The best thing you can do to protect yourself is to work with a qualified Lancaster IRS tax debt attorney. Contact Wadhwani & Shanfeld today to schedule an initial consultation.