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Posted on January 21, 2024 in IRS
If you have received a notice from the IRS stating that you have outstanding tax liability in Las Vegas, then you may be feeling unsure about what to do next. If your IRS bill includes penalties or interests, then this can add further stress to the situation. Despite what your feelings are, you are likely considering either negotiating the IRS bill yourself or hiring a Las Vegas tax litigation attorney to do it for you.
Understanding the calculations and general accounting behind an IRS bill can be difficult, and without knowing Nevada tax law, it can be hard to understand what the potential penalties could be for your situation. Nonetheless, it is possible to negotiate with the IRS on your own. There are some key considerations that you should take into account.
If you have a pending tax payment and the IRS has gotten in touch with you, then it’s important to work directly with the IRS. This involves being proactive and communicating frequently. Keep in mind that the IRS is usually open to negotiating alternative options for paying off your tax liability.
When it comes to negotiating your tax liability down, you can go about this in two ways: apply for an offer in compromise or show that there are mistakes in your IRS bill. Finding mistakes in your IRS bill will require thoroughly going through all of your personal and business finances, if applicable, and comparing this to the amount of taxes that the IRS has calculated for you.
If you find mistakes in your IRS tax liability statement, then it is important to report these findings to the IRS as quickly as possible. When communicating with the IRS, it is important to clearly indicate parts of the payment that you are disputing and provide relevant documentation, such as pay slips or mortgage payment receipts.
An offer in compromise can be applied for online, and it requires inputting all of your financial information, including your income or earned interest, bank balances, home equity value, financial assets owned, as well as other key details. You will also need to list all of your expenses, including mortgage payments, rent, public transportation, or vehicle-related expenses.
The IRS website will be able to automatically determine whether or not you are eligible for an offer in compromise. Keep in mind that if you are going through a bankruptcy proceeding or have a business that is going through bankruptcy, then you are automatically disqualified. A tax lawyer can help ensure that you properly fill out the website and determine whether you qualify or not.
If you have gone through the negotiation process with the IRS, your dispute was rejected, and you do not qualify for an offer in compromise, then you can still apply for an installment plan. An installment plan application can be submitted using an Installment Agreement Request form, or using the Online Payment Agreement Tool. Any communication with the IRS over text or email is likely an IRS scam.
An experienced and knowledgeable tax liability lawyer can help assist you with working out options related to your tax payment plans. By using their knowledge of accounting and tax law, they can help increase your chances of having an optimal outcome when disputing your IRS claim or applying for a certain installment plan.
A: The Fresh Start program is offered by the IRS to give different options to individuals who are late on paying their taxes. Under the Fresh Start program, taxpayers can either follow an installment program, go through with an offer in compromise, or get a delay on their payment. An experienced tax attorney can advise you on which options might work optimally for you.
A: An offer in compromise is a program that is run by the IRS to provide options for taxpayers who do not have enough money to pay off their tax liability or who would face a situation of financial hardship if they had to pay off their taxes. An offer in compromise essentially allows taxpayers to pay a lower amount than that for which they are liable. A tax attorney can help facilitate the offer in the compromise process by negotiating and providing relevant documents.
A: When the IRS is considering whether to make an offer in compromise and what amount they will reduce a taxpayer’s tax liability by, they will look at all relevant details related to the taxpayer’s finances. This includes an assessment of their total income, the expenses that they have, all assets and property that the taxpayer has ownership of, and their overall ability to pay.
A: While it is not always necessary to hire a tax lawyer to help with IRS negotiations, it is generally advised. This is because a tax lawyer has specific knowledge about local tax laws and basic accounting that they can leverage when negotiating on your behalf. It’s important to keep in mind that while a tax lawyer costs money upfront, they can help you save money and time down the line by optimizing your negotiation outcomes.
When it comes to tax liability, it is better to be safe than sorry to keep a clean record and avoid the possibility of future penalties and interests. A Las Vegas tax litigation attorney from Ken R. Ashworth & Associates can assist you with your IRS negotiations by thoroughly assessing both your financial situation and your IRS bill. Also, they can help you to understand whether there are mistakes or not, as well as if you qualify for certain programs, such as an offer in compromise.
Get in touch with our knowledgeable and passionate team today to get your taxes squared away.
