Fort Lauderdale Tax Debt Settlement Lawyer

Fort Lauderdale Tax Debt Settlement Attorney

It can be very stressful to have existing tax debt and even more frustrating when you don’t have the resources to pay it back. Any number of emergencies can prevent someone from filing their taxes on time. Unfortunately, if you ignore that tax debt, it will continue to gather penalties and accrue interest. The problem can grow much worse over time. A Fort Lauderdale tax debt settlement lawyer can help you take steps to address your tax debt.

Whether you owe taxes to the Internal Revenue Service (IRS) or the Florida Department of Revenue (DOR), a knowledgeable tax attorney in Fort Lauderdale can review your circumstances and determine what you can do to resolve your debt.

Let TaxSmith, LLC Help You Find a Resolution

When you can’t repay your tax debt, you have options. By negotiating with the tax agency, you may be able to pause the payment of your debt, give yourself more time to pay it back, or pay back a lesser amount. A tax attorney can review your resources, income, and other factors to determine what debt settlement options you have and what is most effective for your financial situation.

At TaxSmith, LLC, we have spent decades in tax law, primarily helping taxpayers in communities around Florida to resolve their tax issues. You should never ignore your tax debt. Our team can help you address and tackle this overwhelming problem. We can negotiate with the IRS or DOR on your behalf and mitigate the stress and frustration associated with the process.

How Can I Settle a Tax Debt in Fort Lauderdale?

You will not always be able to secure a tax debt settlement. In Fiscal Year 2023, the IRS only accepted 12,711 proposed offers in compromise out of 30,163. In most cases, the IRS expects taxpayers to repay their entire tax debt. However, if this is not a financial possibility for you, you may have other options. Securing a tax debt settlement can help you regain financial stability, and the IRS or DOR can recover a portion of what they are owed.

The nearest Taxpayer Assistance Center Office to Fort Lauderdale is located at 1248 N. University Drive, in Plantation. When you work with an experienced tax debt settlement attorney, they can represent you at in-person meetings at this office and negotiate on your behalf.

There are many potential options for reducing, settling, or delaying your tax debt with the IRS or DOR. Some of these include:

• Installment agreement. An installment agreement is a payment plan with the IRS that gives you more time to pay back your entire debt. This is especially helpful for individuals on a smaller budget. It can prevent collection actions that can financially hurt you and demonstrate to the IRS that you want to take action to address your tax debt.
• Penalty abatement. This allows for the elimination of certain penalties under first-time abatement or for reasonable cause. It only addresses the tax penalty and its interest, so it will not eliminate any tax debt you still owe, but it reduces the overall debt.
• Currently Not Collectible. A Currently Not Collectible status temporarily prevents the collection of your debt and collection actions. Collection actions include levies and garnishment. This status is useful when your financial hardship is temporary, and you will be able to pay back the debt in the future.
• Offer in compromise. An offer in compromise is the most traditional form of tax debt settlement, which allows you to resolve the entirety of the tax debt you owe for a lower sum. This may be paid in a lump sum or a regular payment for a set period of time. This option is very beneficial for taxpayers, but it also has a low acceptance rate.
• Innocent spouse relief. If the tax debt you owe was actually created by your spouse, you may be able to secure relief. You must also not have benefited from the money your spouse maintained due to not paying their taxes.

A dedicated attorney can determine the ideal solution for your tax liability.

FAQs About Fort Lauderdale,FL Tax Debt Settlement Law

How Do I Protect My Debt Settlement Money From Taxes?

You may not be able to protect your debt settlement money from taxes. Typically, you are required to pay taxes on a debt settlement that is canceled or settled for a lower amount than you owe; however, there are some exceptions.

The debt is not always considered a cancellation of debt income, such as qualified price reductions by sellers or amounts that are canceled as a gift. Other debts do not have that exception but are excluded from your gross income, like debt canceled through certain bankruptcy types.

What Is the Ideal Way to Settle Tax Debt?

One of the most ideal ways to settle tax debt is through an offer in compromise. This method allows you to settle the entire tax debt you owe for a lesser sum. However, few taxpayers qualify for this debt settlement option. You might qualify if you do not have sufficient resources and income to be able to pay back the debt or paying it would put you in financial hardship. An attorney can help determine if you can secure this.

What Kind of Debt Can Be Taken From a Tax Refund?

If you receive a tax refund, the amount in the refund could be reduced to pay other debts that you owe, including:

• Unpaid and past due child support payments.
• Debt to federal agencies, other than tax debts.
• Income tax debt to state agencies.
• Unemployment debts owed to the state, such as compensation wrongfully paid because of fraud or unpaid contributions owed to a state fund.

If your refund is reduced, you will receive a notice of the offset amount.

Are Tax Relief Companies Worth It?

It can be worth it to work with a tax relief company, but it is essential that you look at their reputation, qualifications, and legitimacy. Review their past work and reviews by past clients. Unfortunately, not all of these companies are legitimate businesses with the ability to resolve your debt, and instead take advantage of struggling individuals. It is better to work with a CPA (certified public accountant) or tax attorney because you can more easily check their credentials.

Navigating Your Tax Debt Settlement in Fort Lauderdale

At TaxSmith, LLC, we understand how overwhelming and confusing tax issues can be, and we want to help. We can give you straightforward tax advice and help you find the right resolution. Contact our firm today.