Las Vegas IRS Tax Attorney

Many Las Vegas consumers and business owners are in debt to the Internal Revenue Service. This is often due to personal income loss, plunging business revenues, payroll tax underpayment, retirement account withdrawals and other issues associated with the difficult economic climate. 

If you owe the IRS money that you can’t afford to pay, you may be experiencing financial hardship because of wage garnishments or bank levies. You may even be receiving threatening letters. Solutions to your tax problems are available, no matter how bad your situation seems.

At Randolph Law Firm, experienced Las Vegas IRS tax attorney Taylor Randolph has helped people get a handle on worrisome tax debt and get their lives back to normal since 2006. We will take the time to meet with you in person, analyze your finances and develop a strategy designed to improve your situation. Our firm can help you explore potential solutions, which can include special payment plans and strategic bankruptcy filings.

How Does the Federal Tax Law Work?

Federal Tax Law gives the government the power to collect taxes from its citizens to help pay for government programs and community improvements.  Income tax is taken from both earned and unearned income. Earned income is money that is earned through either employment or self-employment, while unearned income is income that is generated from the sale of a property or other forms of passive income. The tax rate that a taxpayer is obligated to pay will depend on how much money he or she earned. The more money that a taxpayer earns, the higher the tax rate applied to withhold taxes will be. Each taxpayer will fall into a certain tax bracket, and the tax rate for that bracket will be applied to the taxable income.

The money that is collected from taxpayers goes toward funding government programs such as Medicare, Medicaid, and Social Security. It also goes to defense and security programs to help keep the United States and all of its citizens safe. 

Taxpayer money also pays programs that help low income families who are not getting assistance through the Social Security program. This can include programs such as food stamps, unemployment benefits, and housing programs.

What Are Your Options When You Owe a Tax Debt to the IRS?

An experienced tax attorney can help you navigate your federal tax debt and find options that fit your financial needs. It can be intimidating to receive notices from the IRS when you are unable to pay your tax debt. However, the IRS does offer options for taxpayers that find they are unable to pay their taxes. 

Depending on your circumstances, your options may include:

  • An Offer in Compromise, which can enable you to pay off your tax debt according to your ability to pay
  • Moving your debt into non-collectible status, which is a hardship deferment that requires no payment for an extended period of time
  • A payment plan or installment agreement that will let you make affordable payments over time
  • A Chapter 7 or Chapter 13 bankruptcy filing

You will have to be eligible for these options to be approved by the IRS. A bankruptcy filed through the bankruptcy court must also have all required documents and fees to proceed, and the automatic stay be put in place. It is best to make good faith payments while waiting to see if the option you submitted was accepted. Any money paid will be applied towards the final balance owed.

IRS Collection Process Notices

If you are unable to pay your taxes on time or in full, you will be notified of your IRS tax debt as well as any penalties and interest that have been assessed. At this time, you can still contact the IRS and see if a monthly payment plan is an option, or you can pay the amount in full to stop the collection process from proceeding.

If you do not agree with the total amount that has been calculated on your income taxes, then you must notify the IRS immediately. This can be done by calling the number provided on your bill or contacting your local IRS office.

If you do owe the amount stated, or fail to notify the IRS that you disagree with the amount, and it still goes unpaid, the IRS may send any of the following notices to begin to collect the unpaid amount:

  • Notice and Demand for Payment. This is the first notice that will be sent that allows the debtor to see the amount owed and provides contact information.
  • Reminder of unpaid taxes. This is the final reminder prior to notices that will state which enforced action will occur. A second reminder of unpaid taxes might also be sent, although this will depend on if the taxpayer has a history of non-payment.
  • Notice of Intent to Levy. This does not allow the IRS to issue a garnishment, but does advise the debtor that a wage garnishment or a bank levy will be the next step taken by the IRS.
  • Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice will provide the date that the IRS will be able to garnish your wages or bank account, and allows you to set a hearing if necessary.
  • Notice of Federal Tax Lien Filing and Your Right to a Hearing. This notice allows the IRS to place a lien on any property that you may own if the tax debt has remained unpaid.

Taxpayer Bill of Rights

The Taxpayer Bill of Rights gives every taxpayer certain rights when dealing with the IRS. Knowing what your rights are will help you pay a fair amount if you are late on your taxes.

All taxpayers have the right to know what the tax laws are to be able to comply with them. Any notices, forms, and correspondence must contain clear language that outlines procedures. Filers have the right to only pay what they owe, including any interest and penalty fees, and have payments be applied correctly.

Filers also have the right to challenge or appeal any decision reached by the IRS regarding their tax payment. This will involve providing additional information through documentation to be reviewed fairly by the IRS. Las Vegas tax attorneys can help you gather any necessary documents and help to explain how the tax appeal process works.

Taxpayers also have the right to know the timeframe for all deadlines for filing proper forms with the IRS, including challenges to any decisions. Knowledge of how many years’ filings may be included in an audit, and being informed when an audit is completed.

Retaining representation is also a right that all taxpayers can utilize to help while dealing with the IRS. An attorney can make sure that all of your rights are being upheld and help navigate dealing with the IRS agents involved.

How Does the Internal Revenue Service Collect Unpaid Taxes?

If you have failed to file your taxes, or filed but were unable to pay, the IRS can determine that you owe back taxes. Once this has been established through a bill from the IRS, the collection process has begun.

The written notice of your tax bill will contain the amount that is owed, as well as how this amount was calculated. This will also include any late penalties as well as interest that is being charged. Interest and penalties will continue to be added to the amount owed until the balance is paid in full. The notice should also include the deadline for paying the full amount owed to the IRS and a contact number if you disagree with any of the information contained in your bill.

If the owed taxes are not paid by the provided deadline, then the enforced collection process will begin, unless an agreement can be reached. In some circumstances, you might also be summoned to tax court to discuss the lack of payment. If this occurs, having a Las Vegas attorney experienced in tax litigation can help you to prepare for court and any tax audits that might also be required.

A federal tax lien is one of the most common ways to collect the amount owed. Tax liens can be placed onto any property that you currently own, and can include future properties as well. A federal lien can also impact your credit score.

The IRS may also enforce collection through asset forfeiture. This can include seizing money in your back accounts, garnishing your wages, and taking retirement assets. Seizure may also include any refunds that you are eligible for through both federal and state income taxes. Asset seizure will continue until either the full amount of the debt, including the interest and late penalties, has been paid, or you have reached an agreement with the IRS to pay back the amount owed.

How a Las Vegas Lawyer Can Help With IRS Tax Problems

Debtors may see the IRS as a powerful tyrant that cannot be negotiated with. In reality, the IRS is often willing to make favorable arrangements that settle tax debts, sometimes for much less than what is owed. An experienced tax lawyer at Randolph Law Firm can help you secure such arrangements if you qualify.

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