Meeting with the IRS

Sometimes the IRS wants to have an in-person meeting with you. When the IRS comes around to collect, sooner or later you’re going to have to face the music. If you play games with the tax collector, the system is designed to make your life miserable. Here are some things to remember when you owe the IRS.

You have due process

The IRS can no longer simply take your bank account, your automobile, your business or garnish your wages without giving you written notice and an opportunity to challenge what the IRS claims. When you challenge the IRS, all collection activity must come to a screeching halt.
You can even take the IRS to court and they cannot collect from you until the judge issues a decision. You can literally tie the IRS’ hands for years. The IRS is not going to tell you what to do or how to protect yourself.

Don’t ignore any IRS notices

More people get into more trouble than they’ve ever bargained for because they ignore those computer-generated IRS notices. Some IRS notices are sent by certified mail. If you think you can ignore these notices by not going to the post office to pick them up, you’re mistaken. Respond to the IRS every time.

You don’t go to jail just because you can’t pay

In this country, no one goes to jail for owing taxes. You can go to jail for cheating on your taxes and you can go to jail for trying to trick the tax collector, but you can’t go to jail simply because you owe the IRS and can’t pay.

Never meet the IRS alone

IRS collection interviews are no picnic and you should have representation. Chances are you will wind up with much better results with representation accompanying you.

The IRS must explain your rights during an IRS interview

The IRS publication entitled “The IRS Collection Process,” revised in 2015, tells you that you have a right to be represented and that you have a right to be treated in a professional and courteous manner. If you do not like the way you are being treated, you can stop the interview and ask to speak with a supervisor.

The IRS can make mistakes

The IRS was recently “audited” by the General Accounting Office and it seems the IRS’s own house needs some cleaning. Often, the IRS cannot keep track of how much you owe, especially if you have been making regular payments. The IRS makes mistakes, don’t take their word for everything.

Before you go to the IRS, meet with a tax lawyer

This may be the best hour you’ve spent in a long time. The tax expert will tell you how to prepare for your collection interview, how to conduct yourself and make you aware of when the IRS revenue officer is attempting to take advantage of you. You must always remember that the IRS revenue officer’s job is to collect money for the government.

You may be an innocent spouse

Are you widowed, divorced or separated? Do you have tax problems that arose out of the actions of your former spouse? If you answered yes to any of these questions, you may be entitled to innocent spouse relief. This relief could result in the entire tax bill being written off against you. Yes, individual states also grant innocent spouse relief.

You have options when you owe the IRS

People who owe taxes, whether to the IRS or their home state, generally have several options available to them. First, if you owe and can pay in full, you should pay the taxes despite the pain. However, if you cannot pay in full, four avenues may be open to you:

Hardship suspension

Here the IRS leaves you alone temporarily. Your account will be reviewed periodically for your ability to pay. Even though the IRS will not bother you, interest continues to accrue on your account and is compounded daily.

Installment payment arrangement

Here the IRS allows you to make monthly installment payments. Ideally, the IRS wants the bill paid in full within three years. You complete a financial statement and essentially pursue a conventional bank loan. Interest continues to accrue and is compounded daily on the remaining balance.

Bankruptcy

Chapter 7 or Chapter 13 are the most common types of bankruptcy cases. There is also a chapter 12, a Chapter 11, and a chapter 9. It’s not for everyone. However, some taxes, usually income taxes, state and federal, may be dischargeable in a Chapter 7 bankruptcy proceeding. Other bankruptcy chapters allow you to pay your tax bill in monthly installments with either little or no interest at all. Bankruptcy rules are complicated. See a qualified bankruptcy attorney who understands both bankruptcy law and tax law.

Offer in compromise

This is the IRS version of “let’s make a deal”. Under certain circumstances, the IRS will accept the payment of a smaller sum as payment in full for a larger tax debt. Individual states have similar procedures. If your offer in compromise is accepted, tax liens are removed and you are given a fresh start. You should consult with an attorney who specializes in these offers. IRS tax collectors have more power than just about anyone in the federal government. They operate under very few rules. They can make your life pleasant or miserable. Most success in dealing with tax collectors comes from your communicating with them in a prompt manner.

IRS Lawyer Free Consultation

When you need legal help with an IRS debt, please call Ascent Law at (801) 676-5506 for your Free Consultation. We want to help you.

Michael Anderson

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.

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