Pensacola Tax Debt Settlement Lawyer

Pensacola Tax Debt Settlement Attorney

If you have tax debt with the Internal Revenue Service (IRS) or the Florida Department of Revenue (DOR), it is essential that you address this quickly. Penalties and interest grow over time and can leave you in a very bad financial situation. No matter the reason for your tax debt, pay it back quickly. If you cannot pay it back, you have other options. A Pensacola tax debt settlement lawyer can help you take action to prevent further financial issues.

A debt settlement attorney can present your options for managing or delaying your tax payments and prevent collection actions. Collection actions include wage garnishment, property liens, and bank levies. These actions can affect your financial stability and credit.

Let TaxSmith, LLC Help You in Pensacola

The experienced and diligent team at TaxSmith, LLC, has helped taxpayers with their tax needs for decades. We know that taxes can be very stressful and frustrating when you don’t know what you can do about tax liability. Our firm can help you understand your options and provide straightforward legal advice.

Our attorneys will determine what settlement options you qualify for and which are most beneficial for you and your financial needs. We can negotiate with the IRS and the DOR on your behalf so that you don’t have to.

You should never ignore tax debt, no matter how tempting it is. The sooner you address and resolve it, the better your standing with tax agencies and your well-being will be. Let Tax Smith Tax Attorneys help you.

How Can You Get a Tax Settlement?

There are several ways to resolve your tax liability, and tax settlements are one option. There are other ways to mitigate your liability or give you more time to repay the debt. However, it’s important to realize that not all taxpayers will qualify for any of these options. When you owe the IRS a debt, they expect you to pay it. They give allowances and are open to compromises when you cannot support yourself and pay the debt.

If you have a tax debt issue in Pensacola, the nearest Taxpayer Assistance Center Office is 7190 9th Avenue North. A dedicated tax attorney can represent you in stressful negotiations with the IRS and determine a resolution.

What Are My Options for Settling My Tax Debt?

There are numerous options for resolving or mitigating your tax liability, each with unique requirements for applying and qualifying. These options include:

• Penalty abatement. This lets you waive certain penalties and the interest they accrued. You may be able to waive a penalty under the first-time abatement or for reasonable cause.
• Installment agreement. This option is a payment plan that allows you to pay your tax debt over a set period of months. You must still pay the entire tax liability, but you are not required to pay it in a lump sum. When you enter into and follow an installment agreement, it pauses and prevents collection actions.
• Offer in compromise. This enables you to resolve the full amount of your tax liability for a lesser amount, either paid in a lump sum or periodic payments. While an incredibly useful option for taxpayers in need, it is very hard to get an offer in compromise. All other options for debt settlement must be tried first.
  In Fiscal Year 2023, there were 30,163 offers in compromise proposed by taxpayers, but only 12,711 were accepted by the IRS.
• Innocent spouse relief. You may qualify for this form of debt relief if your spouse created your tax liability on joint tax returns, you had no knowledge of the debt, and you didn’t benefit from the income that your spouse retained.
• Currently Not Collectible. This status temporarily prevents the collection of your debt and pauses collection actions. You will eventually have to pay back the debt in full using this method, but it is helpful for those in temporary financial hardship.

What option is right for you will depend on your income, assets, expenses, and other circumstances.

FAQs About Tax Debt Settlement Law in Pensacola,FL

Does Settling Tax Debt Hurt Your Credit?

Settling your tax debt or even having tax debt is not reported to credit bureaus by the IRS. Under the Taxpayer Bill of Rights, you have a right to confidentiality, so the IRS does not share this information. This is true until a lien or levy is placed on your property, which means your debt becomes publicly available knowledge. A tax attorney can help you understand the potential implications of agency collection actions compared to settling your debt.

What Is One-Time Tax Forgiveness?

One-time tax forgiveness, or first-time penalty abatement, is an option for waiving specific tax penalties and interest if you have a history of tax compliance, including not having penalties for the past three years. You may be able to waive a penalty for failure to file, failure to pay, or failure to deposit. You could receive relief for multiple penalties if they were incurred in the same tax period.

Who Qualifies for the Fresh Start Program?

The Fresh Start Program is what the IRS used to call an offer in compromise. You can apply for an offer in compromise if the following is true:

1. You filed all your required tax returns and estimated payments.
2. You are not in an open bankruptcy proceeding.
3. You have an extension for your current return if that is the tax debt you are applying for.
4. You are an employer who has made the required tax deposits in a period.

Can a Tax Attorney Negotiate With the IRS?

Yes, a tax attorney can negotiate with the IRS on your behalf. A fully licensed tax debt settlement attorney with the required credentials is qualified and experienced in negotiating with the IRS or other tax agencies.

This can enable you to secure solutions like payment plans, an offer in compromise, penalty abatement, and other forms of addressing your tax debt. An experienced attorney can review your financial situation and determine what option is right for you.

Let TaxSmith, LLC, Navigate Your Debt Relief Options

You don’t have to deal with the IRS or DOR alone. Let our firm help you. At TaxSmith, LLC, we can help you efficiently address your tax liability and move forward. Contact our firm and learn what we can do for you.