Orlando Tax Debt Settlement Attorney

Orlando Tax Debt Settlement Lawyer

Taxpayers may have tax debt resulting from several unfortunate situations in their lives. Though it may be tempting, the worst thing you can do in this scenario is ignore the tax debt. Doing nothing will only allow the debt to grow with penalties and interest, leaving you in a much worse position, like bankruptcy. If you are not able to pay the entirety of your tax debt, there may be options to manage it. An Orlando tax debt settlement attorney can help you review your options.

Tax Smith Tax Attorneys: Tax Debt Legal Support in Orlando

An attorney’s support is beneficial for helping you draft requests to the Internal Revenue Service (IRS) and negotiate options for debt relief. At Tax Smith Tax Attorneys, we have decades of experience in tax law and likely have seen tax debt situations like yours before. We help you determine what tax relief options you qualify for and which offers you the greatest benefits. Our experience covers both individual and business taxpayers.

We understand how stressful and often confusing tax problems and tax laws are. Our firm wants to provide you with the personalized support and compassion that you need to move on from your tax debt.

Understanding Tax Settlements

Tax settlements are not always possible for taxpayers in Orlando, Florida. When you owe the IRS taxes, you must usually pay those taxes in full. There are some cases where the IRS is willing to compromise, allowing taxpayers to pay their debt over a longer period of time or erase small portions of the owed tax. This allows the IRS to recover some of the taxes they are owed in a situation where they would otherwise receive none.

Options for Tax Debt Settlements

Even when you as a taxpayer are unable to settle a tax debt for a smaller amount, there are benefits to negotiating your tax debt with the IRS, including helping lower the amount of penalties you must pay. It also demonstrates to the IRS that you are doing what you can to address the tax debt you owe. Some potential options to settle or address your tax debt include:

• Installation Agreement: An installation agreement allows you to create a payment plan with the IRS to pay back your tax debt. This payment plan covers the entire amount of the tax debt but does not require the full amount to be paid immediately. This can help individuals who work with a smaller budget, enabling them to meet their monthly needs, pay back tax debt, and avoid IRS collection actions. The total debt you owe and your income are two of the main qualifying factors.
• Penalty Abatement: Penalty abatement allows you to eliminate specific penalties and their interest from your tax debt. There are options such as first-time abatement or abatement based on legitimate reasoning relevant to the penalty. For example, a late penalty may be abated if the lateness was due to a natural disaster.
• Currently Not Collectible: When a tax debt is marked as currently not collectible, it will temporarily pause IRS collection of your tax debt. This option may be available if you are financially unable to pay the debt. While you must pay the tax debt eventually, this allows you time and prevents you from dealing with IRS collection actions.
• Offer in Compromise: An offer in compromise is generally what people think of when they think of tax debt settlement. If paying back your tax debt is a financial impossibility or would put you in hardship, the IRS may allow you to settle your entire tax debt for a lower amount. Requests for an offer in compromise are difficult to get approved.
• Innocent Spouse Relief: Innocent spouse relief may be an option if tax debt was created by a spouse or ex-spouse, and you can prove you did not benefit from the money they retained from unpaid taxes.

FAQs

Q: How Can You Eliminate Tax Debt Through a Settlement?

A: You may be able to eliminate your tax debt through a settlement via an offer in compromise, though these are very hard to secure. They are only allowed in specific situations, and the acceptance rate is low. An offer in compromise may be available to you if paying off your tax debt is financially impossible for you or if paying it off would put you in incredible financial hardship. If accepted, this option would allow you to settle your debt for less.

Q: Who Is the Ideal Person to Help with Taxes?

A: The ideal professional to help with taxes depends on the specific services and aid you need with your taxes. A certified public accountant (CPA) and an Orlando IRS tax attorney are two professionals with significant education in taxes and tax law who can help with different aspects of your taxes. A tax attorney can provide you with legal advice regarding tax law and help both individual and business taxpayers navigate various aspects of tax filings and tax debt.

Q: Do Tax Relief Companies Really Work?

A: Tax relief companies may or may not work, and it is always important to assess a business’s individual legitimacy and success. Some of these companies take advantage of vulnerable people dealing with tax debt and do not have the actual capabilities to help. For many taxpayers, it is better to work with a tax professional with the appropriate education and licensure, such as a tax debt relief attorney. A tax attorney has the ability to negotiate with the IRS. It is also simpler to check an attorney’s license and other accreditations.

Q: How Much Does a Tax Attorney Cost in Florida?

A: How much a tax attorney costs in Florida depends on many factors, including the size of the firm, the experience level of the attorney you work with, and the type of tax service you need completed. For one-time services, an attorney may charge a flat fee rather than an hourly rate. For representation in negotiations and other long-term tax services, an hourly rate is more likely. Always discuss pricing with an attorney before retaining them.

Managing Your Tax Debt in Orlando with Tax Smith Tax Attorneys

There may be several options available to you to make your tax debt more manageable or even resolve it. Contact Tax Smith Tax Attorneys to see how we can help with your tax debt.