Orlando Tax Debt Settlement Attorney

Orlando Tax Debt Settlement Lawyer

Taxpayers may have tax debt resulting from several unfortunate situations in their lives. Though it may be tempting, the worst thing you can do in this scenario is ignore the tax debt. Doing nothing will only allow the debt to grow with penalties and interest, leaving you in a much worse position, like bankruptcy. If you are not able to pay the entirety of your tax debt, there may be options to manage it. An Orlando tax debt settlement attorney can help you review your options. A knowledgeable tax lawyer in Orlando with IRS experience can assess your situation and help you negotiate a manageable solution.

Many sudden and unexpected situations can leave an individual with unpaid taxes, which then results in late penalties. If this debt is unaddressed, the penalties and interest will grow and can become a very serious financial issue. When you don’t have the financial ability to address your tax liability, an Orlando tax debt settlement lawyer can assess your options for resolving or mitigating your tax debt.

Let TaxSmith, LLC Help You in Orlando

Having tax debt can be immensely stressful. A skilled tax debt attorney can help you minimize this stress and secure the most beneficial outcome of a settlement. At TaxSmith, LLC, we have decades of experience helping taxpayers in our communities navigate tax codes and tax debt. While every person’s situation is unique, we have likely seen a tax issue similar to yours before and can apply our knowledge to your benefit. We help you determine what tax relief options you qualify for and which offers you the greatest benefits. Our experience covers both individual and business taxpayers. We understand how stressful and often confusing tax problems and tax laws are. Our firm wants to provide you with the personalized support and compassion that you need to move on from your tax debt.

When you have tax debt with a state or federal tax agency, we can negotiate on your behalf, protecting your rights and making sure the process is fair. We can explain the process to you so you know what to expect and help you make important choices about your financial future.

Understanding Tax Settlements

Tax settlements are not always possible for taxpayers in Orlando, Florida. When you owe the IRS taxes, you must usually pay those taxes in full. There are some cases where the IRS is willing to compromise, allowing taxpayers to pay their debt over a longer period of time or erase small portions of the owed tax. This allows the IRS to recover some of the taxes they are owed in a situation where they would otherwise receive none.

Types of Tax Settlements

There are numerous options for taxpayers who can’t pay back their full tax debt immediately, which enables them to pause collection, give them more time to pay in full, or other options. Even when you as a taxpayer are unable to settle a tax debt for a smaller amount, there are benefits to negotiating your tax debt with the IRS, including helping lower the amount of penalties you must pay. It also demonstrates to the IRS that you are doing what you can to address the tax debt you owe. Some potential options to settle or address your tax debt include:

• Installation Agreement: An installation agreement allows you to create a payment plan with the IRS to pay back your tax debt. This payment plan covers the entire amount of the tax debt but does not require the full amount to be paid immediately. This can help individuals who work with a smaller budget, enabling them to meet their monthly needs, pay back tax debt, and avoid IRS collection actions. The total debt you owe and your income are two of the main qualifying factors.
• Penalty Abatement: Penalty abatement allows you to eliminate specific penalties and their interest from your tax debt. There are options such as first-time abatement or abatement based on legitimate reasoning relevant to the penalty. For example, a late penalty may be abated if the lateness was due to a natural disaster.
• Currently Not Collectible: When a tax debt is marked as currently not collectible, it will temporarily pause IRS collection of your tax debt. This option may be available if you are financially unable to pay the debt. While you must pay the tax debt eventually, this allows you time and prevents you from dealing with IRS collection actions.
• Offer in Compromise: An offer in compromise is generally what people think of when they think of tax debt settlement. If paying back your tax debt is a financial impossibility or would put you in hardship, the IRS may allow you to settle your entire tax debt for a lower amount. Requests for an offer in compromise are difficult to get approved.
• Innocent Spouse Relief: Innocent spouse relief may be an option if tax debt was created by a spouse or ex-spouse, and you can prove you did not benefit from the money they retained from unpaid taxes.

Can I Settle My Tax Debt?

Many taxpayers successfully settle their tax debt through methods like payment plans, reduced penalties, and other options. However, not every taxpayer can settle their tax debt. If you can pay back your tax debt, and doing so will not put you in financial hardship, then you should resolve the issue quickly.

If you cannot pay your tax debt, the Internal Revenue Service (IRS) is open to compromise and negotiation. This can give you significant financial stability and help you avoid tax agency collection actions. Unresolved collection actions like tax liens can remain on public records for years, affecting future home purchases and loan applications.. By negotiating with the IRS, you can prevent some or all of these collection actions.

The nearest Taxpayer Assistance Center Office in Orlando is located at 201 S. Orange Avenue, Suite 1118. If you have tax debt or another tax issue, an attorney can represent you at in-person meetings at this office and negotiate for you.

FAQs About Orlando,FL Tax Debt Settlement Law

How Can You Eliminate Tax Debt Through a Settlement?

You may be able to eliminate your tax debt through a settlement via an offer in compromise, though these are very hard to secure. They are only allowed in specific situations, and the acceptance rate is low. An offer in compromise may be available to you if paying off your tax debt is financially impossible for you or if paying it off would put you in incredible financial hardship. If accepted, this option would allow you to settle your debt for less.

Who Is the Ideal Person to Help with Taxes?

The ideal professional to help with taxes depends on the specific services and aid you need with your taxes. A certified public accountant (CPA) and an Orlando IRS tax attorney are two professionals with significant education in taxes and tax law who can help with different aspects of your taxes. A tax attorney can provide you with legal advice regarding tax law and help both individual and business taxpayers navigate various aspects of tax filings and tax debt.

Do Tax Relief Companies Really Work?

Tax relief companies may or may not work, and it is always important to assess a business’s individual legitimacy and success. Some of these companies take advantage of vulnerable people dealing with tax debt and do not have the actual capabilities to help. For many taxpayers, it is better to work with a tax professional with the appropriate education and licensure, such as a tax debt relief attorney. A tax attorney has the ability to negotiate with the IRS. It is also simpler to check an attorney’s license and other accreditations.

How Much Does a Tax Attorney Cost in Florida?

How much a tax attorney costs in Florida depends on many factors, including the size of the firm, the experience level of the attorney you work with, and the type of tax service you need completed. For one-time services, an attorney may charge a flat fee rather than an hourly rate. For representation in negotiations and other long-term tax services, an hourly rate is more likely. Always discuss pricing with an attorney before retaining them.

Are Tax Debt Relief Companies Legitimate?

A tax debt relief company may or may not be legitimate, and it is important to evaluate a specific company for legitimacy. There are some companies that prey on people in vulnerable financial situations but have no ability to help settle their debt. Review their credentials, past work, professional reputation, and statements by past clients.

It is more helpful to work with a CPA (certified public accountant) or tax attorney, as you can check their licensure and professional standing.

Are Tax Lawyers Worth It?

Tax lawyers are worth it, and there are many ways they can help you, including:

• Helping settle your debt efficiently
• Determining what debt settlement options you qualify for and are most beneficial
• Limiting your stress as you navigate debt settlement
• Helping you draft an application for a settlement
• Negotiating with the IRS for you
• Protecting your financial interests and your rights
• Helping you understand how state, federal, and local tax codes apply to you

How Much Does a Tax Relief Attorney Cost?

The cost of a tax relief attorney varies depending on the attorney and what type of tax relief services you are in need of. Most tax relief attorneys charge an hourly rate or flat fee, depending on the service. The rate depends on factors like the attorney’s experience, the location of the firm, and the firm’s size. If the tax relief service is for long-term negotiations with a tax agency, it is more likely to be an hourly rate.

How Much Will the IRS Usually Settle For?

The IRS will usually settle for whatever it believes you can reasonably pay, which is determined based on your income, financial resources, expenses, and other factors. However, you must first qualify to apply for an offer in compromise before a settlement can be given. When you work with an attorney, they can help you determine if you can apply and make a reasonable offer for a settlement based on your financial situation.

Managing Your Tax Debt in Orlando with Tax Smith Tax Attorneys

When you have state or federal tax debt that you do not have the financial means to address, there are options. Let TaxSmith, LLC help you protect your financial needs and avoid financially harmful collection actions. We can determine what tax debt settlement options you qualify for and which are most useful for your situation. Contact our firm today.