Get Help With Tax Debt in Las Vegas

There are several ways to get help with tax debt in Las Vegas, including making an offer in compromise, setting up a payment plan, asking for a ‘Currently Not Collectible’ status, seeking abatement of penalties, and declaring bankruptcy. You could seek professional assistance to find and utilize the most effective option based on your situation.

The Internal Revenue Service is unlikely to advise you about your debt resolution options when it contacts you concerning your tax debt. If left unresolved, tax debt can lead to additional penalties, wage garnishment, and seizure of property.

Call Randolph Law Firm, P.C. at 702-757-7777 for guidance on the solutions that will best resolve your tax debt issues in Nevada.

What Is Considered Tax Debt?

Tax debt refers to the unpaid taxes a debtor owes the IRS after the filing deadline. The IRS processed more than 2.5 million tax returns and other forms from Nevada in 2023. Even if you file a tax return on time but don’t fully pay what you owe, the remaining balance of your back taxes will be considered tax debt. Tax debt rises over time as the IRS keeps adding penalties and interest to unpaid back taxes. Tax return preparation errors, failure to file returns, divorce, and unpaid payroll taxes are common reasons people end up with tax debt.

Options for Resolving Tax Debt in Nevada

It’s essential to take action quickly and get tax debt help when you can’t pay off the full amount. The IRS has great debt collection power and can go above and beyond to forcefully resolve outstanding tax debt. That could leave you asking, “How do I get rid of tax debt?”

The good news is, a variety of solutions exist for people who owe tax debts they can’t pay. Tax debt is a less intimidating experience when you understand these options and what works best for your situation. Here’s a closer look at tax debt resolution strategies.

Offer in Compromise (OIC)

An offer in compromise is a formal agreement between a taxpayer and tax authorities to settle the taxpayer’s entire tax debt or less than what is owed. The IRS generally grants an OIC based on one of the following:

• Doubt as to liability: The taxpayer proves that doubt exists regarding the existence of or the amount of taxes owed
• Doubt as to collectability: This exists when a taxpayer’s income and assets can’t fully cover the tax debt owed.
• Effective Tax Administration: The taxpayer proves that paying the tax debt fully would create a severe economic hardship.

If approved, an OIC can save you thousands of dollars in the long run.

Payment Plan

An IRS payment plan or installment agreement allows you to pay off what you owe in installments over an extended timeframe. The IRS offers short-term and long-term plans, depending on the amount of debt you owe.

You can apply for an IRS payment plan online. Interest will still accrue during the payment period until the balance reaches zero. You may also have to pay a fee.

Currently Not Collectible (CNC) Status

If you can demonstrate to the IRS that you’re unable to pay your tax debt currently due to a financial hardship, you can have your debt designated as Currently Not Collectible. Financial hardship implies your current living expenses leave no room to pay your back taxes. When you get the Currently Not Collectible status, the IRS suspends further collection activity for your tax debt.

This status is temporary. The IRS will periodically reevaluate your financial condition to determine if the status should be updated. If the IRS determines you’re able to pay, it will remove you from CNC status and resume collection activities. This option is ideal if you’re unable to pay your debt right now, but may afford to pay it off in the future.

Penalty Abatement

Accumulated penalties can make it harder to pay off tax debt. You could request a penalty abatement to have the IRS partially or completely remove the amount you owe in penalties.

To qualify for a penalty abatement, you must show you have a good reason for failing to pay taxes on time. The IRS and state tax authorities usually consider grave issues beyond a taxpayer’s control as good reasons, such as a natural disaster, divorce, death, or a severe illness in the family. An IRS tax attorney can help you establish whether you’re a good candidate for this tax relief option.

Bankruptcy

Bankruptcy can help you reduce or eliminate tax debt in Nevada. However, not everyone can discharge tax debt through a bankruptcy filing. You must meet a few requirements for your tax debt to be dischargeable in either a Chapter 7 or Chapter 13 bankruptcy.

Your tax debt is only dischargeable if the tax return it stems from was due at least three years ago. You must have filed a tax return at least two years before filing for bankruptcy. Your taxes must have been assessed by the taxing authority at least 240 days before filing for bankruptcy. Your tax debt can’t be discharged by bankruptcy if the tax return was fraudulent, or you committed any form of tax evasion. Tax debts arising from unfiled tax returns are also not dischargeable in bankruptcy.

Innocent Spouse Relief

Filing a joint tax return while married could leave you dealing with tax debt after divorce. When you file a joint return with your spouse, you’re both liable for the taxes owed and any interest or penalties. You could have tax debt due to the activities of a spouse or former spouse. In Nevada, you could request innocent spouse relief to be relieved of the responsibility for paying tax, penalties, and interest if your spouse or ex-spouse made omissions or erroneous entries on your joint tax return.

To qualify for this tax resolution option, you must have filed a joint tax return with your spouse and prove that you were unaware of the errors on the joint return.

Get Help With Tax Debt

The IRS isn’t your friend. You can’t expect the IRS or an IRS resolution center to necessarily tell you all your options for settling back taxes, the option that best fits your circumstances, and how you can save as much money as possible while settling your tax debt while still complying with tax laws. In fact, as you deal with the IRS on your own without guidance and knowledge on what not to do, you could end up saying something, providing too much information, or making errors that lead to additional tax obligations, fees, interest, or fines.

It’s wise to engage an IRS tax debt lawyer before responding to the IRS. An experienced lawyer can come in handy and offer invaluable help with tax debt.

A tax debt attorney is adept in tax laws and regulations. A Las Vegas tax attorney is familiar with the U.S. tax code and Nevada tax laws. He or she will help you better understand the tax codes, regulations, and financial information involved in your case and provide guidance and support to help you deal with IRS agents and navigate the tax debt resolution process in Nevada.

An IRS tax lawyer will work closely with you to analyze your documents and understand the details of your tax debt case. The lawyer will help you understand all your available tax debt resolution options and how each would affect your situation and work out the best solution for your individual circumstances. Depending on the unique facts and circumstances of your case, a tax debt lawyer can help you find relief from tax debt by:

• Carefully preparing and presenting an offer in compromise to the IRS
• Working with the government to get you an affordable payment plan
• Putting together the right documentation and strong application to claim Innocent Spouse Relief
• Building and presenting a well-prepared and well-supported request for penalty abatement
• Representing you in tax court if litigation becomes necessary

When you work with a tax debt attorney, the attorney will handle communication and negotiations with the tax authorities on your behalf, protecting you from doing or saying anything that could sabotage your case. An attorney will help you complete and submit the necessary paperwork and supporting documentation to the IRS. With the strong advocacy, negotiation, and persuasive skills that attorneys utilize in adversarial proceedings, the attorney will aggressively negotiate with the IRS to achieve the best possible terms and outcomes.

You don’t have to face tax debt issues alone. The guidance, advice, negotiation assistance, and representation that tax debt attorneys provide allow you to face the tax authorities confidently and optimally navigate tax debt. If you’re facing tax debt in Nevada and want to regain control of your financial health and future, contact us at Randolph Law Firm to arrange a free consultation with an experienced tax debt attorney.