Legal Help

The IRS is the Internal Revenue Service which is the U.S. government agency responsible for the administration and enforcement of the revenue laws of the Treasury Department. Or to be more specific the IRS is the part of the Treasury Department that is assigned with the duty of collecting income tax from working residents and business establishments.

Although there are several other tax professionals (CPA’s, accountants, enrolled agents, non-tax attorneys) who are able to help taxpayers with questions relating to tax, they are not as specialized as a Tax Attorney which can prove indispensable when trying to effectively prevent tax over payments. It is here the tax attorney really earns his fees. He can do things an accountant cannot. A skilled tax attorney will have knowledge of a statute and be able to guide and interpret it in such a way that will both be legal and will also save you money. He will understand its legislative history and should be familiar with the Treasury regulations and IRS rulings on that statute. He should also be up to date on court ruling and working procedure of the IRS as well as enjoying comfortable working relations with individuals within local offices; this in itself can help to clear up misunderstanding and cut through bundles of red tape quicker than anything else.

If you are wondering when the best time is to hire a Tax Attorney then it is simple Tax related problems can often be avoided with the guidance of a proficient tax lawyer who can be maintained with a monthly retainer. This can often work out less expensive than having to get a Tax Attorney to get you out of a hole that you have either fallen into blindly and unwittingly or have wilfully neglected to accurately count your taxes in a way that the IRS would call honest and fair. If you get the Tax Attorney on a retainer, he or she will then act in the capacity of an advisor, and you can be sure of a settled account every year without the prospect of the IRS coming down on you hard. Working together with your accountant, the tax lawyer, should ensure that your affairs remain compliant.

A Tax Attorney will represent your interests and safeguards your rights should you become involved in tax disputes. However, if you are already facing issues with the IRS then the tax attorney can assist you by dealing with your on going problems. Tax Attorneys are also the best people to negotiate debt relief with the removal of liens and levies. They are also able to arbitrate, reductions of penalties or interest. They would handle all negotiations with the IRS or government on your behalf. IRS tax attorneys are normally accredited lawyers who have been trained to focus on domestic or international taxation. This can again be done on the basis of the Tax Attorney dealing with people with whom they share a common language unlike the rest of us who can often see the taxman as a villain or a heartless official that is out to get us what ever way he can..

Stop wage garnishment

If you owe the United States Government money you know that the IRS has a lot of weapons at their disposal in collecting the money that you owe to them.  Once it is determine that you owe the IRS money, the IRS can begin judgment enforcement procedures against you that take many forms.  Wage garnishments is one form.  A wage garnishment is when a creditor like the IRS, instructs the sheriff to serve your employer to send a portion of your wages to the IRS until the full amount of their judgment is paid off.  Under normal wage garnishment rules, only up to 25% of your wages can be garnished assuming you don’t file for other claims of exemptions which will be discuss at a later date.  One way to stop or suspend wage garnishment is to contact a tax attorney to settle your IRS debt.

IRS Settlement Initiative

The IRS recently proposed a settlement program, which provides a one time opportunity for tax payers to voluntarily come forward and resolve their civil tax disputes.  Under the initiative, taxpayers would concede the improper tax benefits they claimed and be provided with some tax relief for the transaction cost and civil penalties.

Participation requirements:

  • Tax payer must conceded 100% of the transaction’s tax benefits
  • Tax payer will be allowed to treat as an ordinary loss the full transaction claimed on the tax return.
  • A penalty of a quarter of the maximum applicable penalty (20%)

No penalty will be due if the taxpayer, made a voluntary disclosure under the program or got a written tax opinion before filing the tax return that: (a) Was not a opinion that was part of the package sold by the promoter, but was given by a tax adviser meeting certain tests, and (b) Was a “more likely that not” opinion, that is, it concluded at a confidence level greater than 50% that the significant tax issues would be resolved in the taxpayer’s favor.