Tampa Tax Debt Settlement Attorney

Tampa Tax Debt Settlement Lawyer

When you have a tax liability with the Internal Revenue Service (IRS), it can be very stressful, and it is not always easy to address the liability. Unfortunately, when you do not address it, the penalties and interest can continue to grow. You may face collection actions that harm your credit or prevent you from accessing your assets. It is important to work with a Tampa tax debt settlement lawyer to understand what you can do about your debt as soon as possible. There are options to minimize your debt or pause most collection actions. You may also be able to settle your debt for less. The right tax attorney in Tampa can help look over your options and represent you to the IRS during negotiations.

Tax debt can occur under many circumstances, particularly when someone’s life is upended and their financial situation changes. It can be incredibly stressful and severely impact your financial stability. The last thing you should do when you have tax debt is ignore it. Instead, find IRS tax attorney in Tampa, FL who can help you resolve your debt, potentially for less than you owe.

Quickly addressing your tax debt is crucial. Avoiding it can result in further penalties and accruing interest. The Internal Revenue Service (IRS) or Florida Department of Revenue (DOR) can also take action to recover the unpaid debt, including garnishing your wages or putting a claim on your property. Acting early to negotiate your tax debt is in your immediate and long-term interests.

Experienced Attorneys Helping Taxpayers with Debt Settlement

The team at TaxSmith, LLC, can help you understand your tax resolution options. If you cannot pay back your debt, we can look over the situation to determine what options you can apply for and which one would be most beneficial for you. Our firm has decades of experience in tax codes and has leveraged this knowledge for many taxpayers in the state dealing with financial hardship. We understand how state and federal tax codes impact people like you. It can be difficult to negotiate with the IRS, but you don’t have to do it alone. TaxSmith, LLC can handle this process for you, helping you protect your rights and financial interests. It can be very overwhelming to face a tax liability you can’t pay back, but know that you have options, and our firm can help secure them.

When you need legal advice and representation to negotiate with the IRS or DOR, Tax Smith Tax Attorneys can help. Our attorneys have provided information and legal support to individual and business taxpayers throughout Florida for decades. We have comprehensive knowledge of tax debt settlement options, and we can assess your unique tax situation and determine the ideal solution. Our firm offers assistance based on the principles of care and respect. We understand how stressful and frustrating tax law can be, and we take the time to ensure you have the information you need to make important choices about your future. When you are unsure how to handle your tax debt, our team can provide the support and advice you need.

How Can Taxpayers Get a Tax Settlement?

Not every taxpayer is able to obtain a tax settlement, as most are expected to pay back the debt in full. If you have the means to address your tax debt, you should do so. Unfortunately, not all taxpayers have that financial ability. If you cannot pay back your tax debt or if doing so would place you in financial hardship, the IRS allows for negotiations.

By allowing for negotiations, the IRS can recover a portion of owed taxes that it would not otherwise, and taxpayers can regain some financial stability. Many taxpayers have benefited from this system. Your financial situation, your tax liability, and other factors may influence whether you can secure certain debt settlement options.

When you need to navigate a tax issue in Tampa, the closest Taxpayer Assistance Center Office is located at 3848 W. Columbus Drive. There is also an office located in Clearwater, at 10200 49th Street North. It may be easier to navigate negotiations of your tax debt with an experienced tax attorney by your side, representing you.

Understanding a Tax Settlement

When you owe taxes, penalties, and/or interest to the IRS, you are expected to pay this amount in full. For some taxpayers, however, this is not a financial possibility. In such cases, the IRS may be willing to compromise to receive some of the taxes owed. Tax settlements allow taxpayers to pay off their debt over months or pay a lower amount to clear the entire debt. Many taxpayers in Tampa are able to secure settlements, but they are not a guarantee.

Tax Settlement Options

There are limited eligibility requirements for different tax settlement options. A tax attorney can help you review the options and determine your eligibility. Some options may include:

• Installment Agreement: This is a payment plan that allows you to pay back the full debt over several months. This is an ideal option for taxpayers with a regular but limited income and insufficient assets to pay the full amount. A payment plan ensures taxpayers can still have some financial stability while avoiding IRS collection actions.
• Currently Not Collectible: This is a temporary pause for those in short-term financial hardship. It temporarily stops IRS collection and avoids collection actions. You will eventually have to pay the debt, but this can give you more time while you work on improving your finances.
• Offer in Compromise: This option allows taxpayers to settle their entire tax debt for less than they owe. It is only an option if other settlement options are not possible and if paying back your tax debt would cause significant financial hardship. It is not easy to get an offer in compromise, and a small number of taxpayers who apply are approved. If you’re considering this route, consulting a Tampa offer in compromise legal expert can be invaluable. An experienced professional can help assess your eligibility, guide you through the application process, and increase your chances of achieving a favorable outcome.
• Penalty Abatement: This allows you to remove certain penalties and the interest they accrued from your tax debt, limiting the total liability. You must qualify for a first-time abatement, or have a reasonable explanation for the error or failure that caused the penalty. For assistance with penalty abatement, a Tampa penalty abatement attorney can guide you through the qualification requirements and help present a strong case to the IRS to reduce or eliminate these penalties.
• Innocent Spouse Relief: You can potentially receive some relief if your tax debt was incurred by your spouse or ex-spouse and you did not benefit from the money.  This program is used for taxpayers whose debt was incurred by their spouse or ex-spouse on their joint tax filing. If the taxpayer was unaware of the error or action that led to the debt and did not benefit from the money their spouse saved, this program could waive the debt.

FAQs About Tampa, FL Tax Debt Settlement Law

Who Can Help Me Settle My Tax Debt?

Depending on your circumstances, a tax debt settlement attorney or a certified public accountant (CPA) can help you settle or manage your tax debt. It’s important to review your situation and determine what type of support or service you need. Knowing when to hire a tax attorney can make a significant difference in resolving complex tax issues like debt settlements. A CPA can help you plan to avoid issues with tax debt in the future and determine a financial plan for paying off the debt. An attorney is useful when you need legal advice or representation in negotiating with a tax agency.

Can a Tax Attorney Negotiate With the IRS?

A tax attorney can negotiate with the IRS if it is within their scope of practice. There are various options available if you are not financially able to pay off your tax debt, including an installment agreement, penalty abatement, offer in compromise, and other potential options to reduce or remove your tax debt liability. A tax attorney can navigate these cases and protect your rights during negotiations.

What Is the Difference Between a Tax Attorney and a CPA?

The main difference between a tax attorney and a CPA is that an attorney is licensed to give legal advice. CPAs and tax attorneys both have an education in tax codes and are licensed to help individuals and business taxpayers. An attorney is beneficial during audits, investigations, and criminal tax cases. A CPA can assist taxpayers with filing taxes, tax planning, and documenting their finances. When choosing a professional, it’s important to understand the type of tax service you need.

Can You Dispute Tax Debt?

You can potentially dispute or appeal a tax debt notice if you believe it is inaccurate. You should contact the relevant tax agency that listed your debt to begin the process. It can also be useful to speak with a skilled tax debt settlement attorney to help you navigate the appeals or dispute process. They can also review other courses of action, such as an offer in compromise, which may be available if the agency is unsure whether you owe the debt.

Are There Tax Forgiveness Options?

Yes, there are tax forgiveness options for certain taxpayers, but they are not easy to secure. Tax forgiveness is most commonly secured through an offer in compromise with the IRS, which enables taxpayers to erase their tax debt by paying a lesser sum to the agency.
A taxpayer may qualify to apply for an offer in compromise if they don’t have the financial ability to pay their entire debt and meet other requirements. Applying does not guarantee approval. The IRS only accepted 12,711 offers in compromise proposals out of 30,163 in 2023.

What Is the Fresh Start Program?

The fresh start program, or an offer in compromise, is an option for resolving your tax liability with the IRS. You pay a smaller sum to the agency within a set period of time, and then your debt is resolved. You may be able to secure an offer in compromise if you do not have the financial ability to pay the debt as it stands. Your assets, income, expenses, and ability to pay will be reviewed.

Who Qualifies for the IRS Fresh Start Program?

The IRS Fresh Start program is now called an offer in compromise. To qualify for this option, you must:

1. Have filed all tax returns and made all estimated payments
2. Not be in an open bankruptcy case
3. Have an extension for the current tax return if that is the debt you are applying for
4. Have made all required tax deposits in the current and prior two quarters if you are an employer

Who Qualifies for the IRS Hardship Program?

There is no specific IRS hardship program, but there are several different options for pausing or reducing your tax liability if you are in hardship. One of these options is the Currently Not Collectible status, which pauses collection on your debt until your financial situation improves.

You must show proof of your financial situation, including income, assets, and expenses, to show that you are in a financially difficult situation and qualify for the Currently Not Collectible status.

Contact a Tampa Tax Debt Settlement Attorney

At Tax Smith Tax Attorneys, we can negotiate with the IRS or DOR on your behalf and help you obtain a solution to your tax debt so that you may start anew. Contact our team today to schedule a consultation.