You’ve been meaning to take care of that little back tax problem. You have every intention of getting to it ASAP. You hope that you’ll be able to file an amended return and they’ll never even notice. But when you flip through the mail, your eyes light upon an ominous-looking envelope, and you realize that the Internal Revenue Service has gotten to you first.

As tempting as it may be to run and scream and stick your head in the sand, none of those options will get rid of the IRS. You’re in over your head and the situation has gone from bad to worse. Now you need to make sure that your next steps don’t lead you to prison. There are a few crucial things you must do.

• Find an advocate. Understand something. The IRS’s “help line” is not there to help you. They are there to help the IRS squeeze as much money out of the taxpayers as possible. They do not have your best interests at heart, and they are not on your side. You need to hire someone like a tax attorney who is loyal to you, has an intimate working knowledge of today’s tax code and how the IRS operates behind the scenes, and who has a history of taking on the IRS and winning. If you were accused of a crime, would you go to court without an attorney? Of course not. Neither should you risk your entire financial future without legal advice.

• Stop the threats. Once you have hired a tax lawyer, you never have to communicate with the IRS again. That’s right, no more teeth-rattling phone conversations or responding to missives in the mail. Your tax attorney becomes your mouthpiece, and a much more effective one than you could ever be. (You’d be amazed at how many people accidentally incriminate themselves to “that nice lady who called from the IRS”.) Your tax lawyer may also be able to call a temporary halt to the IRS’s threats of liens or levies. Hiring a legal representative gives you and your tax attorney breathing room to get your case together and launch a much more effective defense than you ever could on your own.

• Negotiate away fees and penalties. The IRS has hundreds of fees and penalties they can slap you with. These extras can bulldoze a medium-sized molehill of a back tax problem into an unrecognizable mountain of debt. Once the IRS realizes that they are playing hardball with a professional tax attorney, they may be more likely to eliminate these add-ons as part of the negotiation process, and to cut the bill down to something that more closely resembles the original debt.

• File an appeal. Did you know that you can appeal a levy or lien that has already been placed against you? Do you know how to do this effectively? Your tax lawyer does. He or she can file with the IRS Appeal Division. Certain types of appeals are required to be ruled on within five working days.

• Negotiate a payment plan. Once your tax attorney and the IRS have whittled down the amount you owe, you need to decide how to pay it. If you can pay in a lump sum, the government will pressure you to do so. If you have no major assets, but are gainfully employed, they are more likely to agree to a payment plan. They will even deduct the money from your checking account so you don’t have to endure the trauma of writing and sending a check every month. Thoughtful IRS. The downside of a payment plan is that if you break the agreement, they will go back to square one and come after you again.

• Consider an Offer in Compromise settlement. You may be able to negotiate your debt with an Offer in Compromise. For example, the IRS might clear your $20,000 debt if you pay them a $5,000 lump sum. This is another way in which your tax lawyer is worth his weight in gold. There are limited opportunities to come up with the right number that the IRS will accept. Working with a tax attorney is the best chance you have at crafting a successful Offer in Compromise.

• Be designated Currently Not Collectible. If you are destitute, or if you are chronically ill or otherwise not able to work nor pay taxes, it is possible to get classified by the IRS as Currently Not Collectible. Now, should you ever win the lottery or your income increases significantly. The IRS will come after you with both guns blazing. But if your tax lawyer can prove that you have no assets and no foreseeable hope of acquiring any, they might put your name in Currently Not Collectible status. This could be temporary or permanent depending on your situation over time.

Getting nailed for not paying your back taxes is a serious offense, and can potentially ruin your finances, business, career and credit rating. Fortunately, there is help available. Take a deep breath and acknowledge that this is not a battle you are likely to win without professional guidance. Pick up the phone and call a reputable tax attorney who can help lead you out of the dark and scary back tax forest and into the light of sleeping through the night again.

About Jeffrey S. Gartzman, Atlanta Tax Attorney and Certified Public Accountant
Jeffrey S. Gartzman is an accomplished Atlanta tax attorney and CPA who has been practicing tax law in Atlanta for nearly 30 years. He will help you resolve IRS and state tax problems, find tax relief and settle tax debt. Jeffrey S. Gartzman is a former IRS Taxpayer Education Program instructor. He is also an accredited Personal Financial Specialist with the American Institute of CPAs.

When you owe the IRS back taxes or you’re facing tax debt, a common reaction is to avoid the IRS out of fear or confusion. People may think they can’t afford to pay their back taxes, so what difference does it make? If you don’t take action to get tax resolution, you can lose rights you may not realize you have and accumulate significant interest that makes the situation much worse.

You have the right to an appeal

Taxpayers who receive a notice from the IRS that they owe unpaid taxes may have the right to file for a Collection Appeal Procedure or a Request for a Collection Due Process hearing of the IRS findings. If you don’t act before the IRS does, they will make an assessment of your owed back taxes and start collection action right away. This puts you at risk for liens, levies on your wages of bank accounts, seizures of property, and shutting down your business. Your tax attorney can review your appeal rights, intervene on your behalf, and walk you through the appeal or hearing process.

File your own taxes – don’t let the IRS do it for you

Sitting on your unfiled tax returns is like inviting the IRS to file them for you. If the IRS files your return – called a Substitute for Return (SFR) – the results are almost guaranteed to be unfavorable for you. Fighting the SFR is time consuming and takes considerably more effort than getting IRS tax help from the start. Getting help from a tax attorney means they will intervene with the IRS and file a tax return based on your actual tax information.

Avoid back tax interest and penalties

Another advantage of getting tax help right away is that you can avoid accumulating significant interest and penalties on your tax debt. Hire a tax attorney to face your IRS problems and you could avoid the headache and increased debt that avoidance will likely cause.

A tax attorney will help you with solutions to IRS tax debt, like installment plans, payment options, Offers in Compromise, the proper legal procedures, and – most importantly – educating you about your legal rights as a taxpayer.

Jeffrey S. Gartzman is an Atlanta tax attorney and CPA who has been helping people in Atlanta resolve tax problems since 1982. He specializes in tax law and will expertly represent you during an IRS appeal procedure and in dealing with IRS problems. To get the tax help you need, contact The Gartzman Law Firm today at (770) 939-7710.