Paying taxes is burdensome to some people. There may be times when you miss out on properly computing the correct deductions from your paychecks or you may have overlooked the filing of your taxes for your freelance work income or from your investments. You may just be surprised when the big tax bill arrives come April. Not a lot of people have enough cash to pay off unexpected debts and you may be at a loss on how to settle such huge amount of dues. Regardless of the circumstances, you can not just sweep them under the rug. Otherwise, you will risk losing your assets such as your house, cars, personal belongings, and even your money saved up for retirement.
There are ways to protect your most valuable assets. Read on for your options:
Get in touch with the IRS.
First things first. You need to call the IRS the moment you receive the notice that you owe Arizona taxes, knowing you will be unable to pay them. Otherwise, the IRS will be compelled to begin collection activities against you and this may involve seizure of your property. You may avoid this inconvenience if you call up IRS (through the phone number on the notice, and sometimes, even the contact person, listed down) and inform them that you do not have the capacity to pay. You may let them know and that you are willing to set up a repayment plan with a more affordable monthly payment.
Petition for an administrative resolution
There may be times you may not be able to come up to terms with the IRS simply because you do not enjoy a good relationship with the IRS representative (usually because of miscommunication or personality differences) or perhaps you just do not agree with the conclusions reached by the IRS. There is still a way to put a stop to the collection activities and the seizure of your assets by petitioning for an administrative resolution where a hearing before an administrative panel is conducted.
A petition for an administrative resolution is your option if you feel that the IRS has overreached in its collection efforts and has been threatening you or going after assets that are not appropriate to the debt you owe. Although you may represent yourself at the hearing, it is a wise move to get one of the best tax attorneys in Arizona at Zolman Law. They are well versed on law and taxation and can, therefore, make a stronger case on your behalf.
Make a stand that you are innocent.
Let us face it, not all marriages are smooth sailing. Marriage is still fraught with secrets between spouses, that may sometimes involve finances. Such secrets can sometimes result to a spouse breaking the law that may get the innocent spouse in trouble as well. For instance, a spouse may hide assets that are later uncovered by the IRS and are taxed. There may also be times that a spouse may not disclose the correct income or intentionally lie about other information on the tax return which results to fraud.
Given the above circumstances, you may argue that your spouse is the one responsible for the debt and you have no knowledge of them. In this way, you may still be able to protect your assets. Bear in mind, though, applying for Innocent Spouse Relief is a complicated process and the best way to go about it is to work with an experienced tax attorney in Arizona who will apply for it on your behalf improve your success rate.
Get the services of a qualified tax attorney in Arizona.
Our experienced Arizona tax attorney at Zolman Law may be able to help you find solutions to challenge, minimize, or better manage your tax debt. For instance, your attorney may look into your tax returns and look for ways to reduce your tax obligations through getting more deductions or credits. Your tax attorney may also assist you in getting Innocent Spouse Relief or find other means to protect your assets. Your attorney may also negotiate to lower the amount you need to pay for. Attorneys experienced in tax law is a plus since they can look for ways to minimize your losses. A lot of tax matters may end up in subjective interpretations of the circumstances. Therefore, a tax attorney may also be able to turn the case in your favor depending on how the evidence is presented.
You may opt to file for bankruptcy.
If, in the event, you have exhausted all possible options with your attorney and still end up owing a huge deal of money you are still unable to pay. In such cases, bankruptcy filing may be the best move.
If you are qualified, tax debt may be discharged under Chapter 7 bankruptcy. If you file before the IRS moves forward on collection efforts, you can also avoid having a lien placed on your property. Once a lien is placed, it is very challenging to remove. Even a bankruptcy filing is not enough to remove the lien. Not even filing for bankruptcy can have it removed.
Contact Our Arizona Bankruptcy and Tax Attorneys Today
Call our Arizona bankruptcy attorneys at Zolman Law if you are considering bankruptcy or get in touch with our tax attorneys if you require legal advice on your taxes. All our attorneys at Zolman Law have vast experience in bankruptcy and tax relief and are therefore fully equipped to handle your cases, are knowledgeable enough to help you get your head around your options to protect your assets and minimize, or better yet, eliminate your tax debt.