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[P760]Property For Back Taxes

by Seomul Evans, Seo

When you get a letter from the IRS claiming that you owe back taxes, you may be tempted to simply throw away the letter and pretend it never happened. But ignoring the IRS and hoping they'll go away creates more problems than it solves, so make a plan to face the issue, and make sure that plan includes a tax attorney.

The worst part about dealing with back taxes is the fear of the unknown. How much do you owe in back taxes? How much is the IRS going to charge you in fees and fines? How do they plan to get that money from you? Fortunately, you can save yourself a lot of worry by hiring a tax attorney to help you out. Your taxpayer rights include the right to representation, so exercise that right by getting a professional on your side. Besides saving a lot of heartache and lost sleep, here are four other reasons to hire a tax attorney to help you address the issue of back taxes.

The IRS wants to get as much from you as legally possible. The fact that you can't pay your taxes means nothing to the IRS agent who keeps calling you and sending you letters. He or she will make sure you pay those taxes, first by tax liens and then by tax levies. The IRS may choose to garnish your wages by forcing your employer to give part of your paycheck to the IRS, or they may choose to seize your bank account or home. Don't underestimate the ruthlessness with which the IRS will pursue payment of your taxes.

The advantage of using a tax attorney, however, is that a seasoned tax attorney is familiar with loopholes and is good at negotiating. A tax attorney is also familiar with the extent of your rights as a taxpayer and will ensure that the IRS respects those rights.

You don't know enough. You have perfectly good reasons for not paying your taxes, but the IRS doesn't care and it can extremely intimidating to try to make your case to an IRS auditor. That's where a good tax attorney comes in. He can file, settle, and resolve the case on your behalf. The IRS will continue to assess fees and fines, and will demand that you pay the money you owe much quicker than you can probably afford to. So use a tax attorney to help guide you through the red tape.

You can settle for less. When you use a seasoned tax attorney, you'll be able to settle your case for much less than you would be able to if you were representing yourself. A good tax attorney may also be able to get rid of all the fines and fees that have been assessed to you. If you face the IRS alone, however, you can be assured that they will demand every penny, plus all of the fees and fines. And they'll keep assessing those fees and fines until you pay every bit.

You don't know how to negotiate with the IRS. IRS auditors are intimidating. As government agents, they have an incredible amount of power over you and your wallet, and they aren't afraid to take advantage of that power. An IRS agent doesn't have that same power over a tax attorney, meaning that a tax attorney can negotiate in a much more calm, rational, and detached manner.

Additionally, IRS agents don't have any problem calling you regularly and writing you letters. A tax attorney will field those phone calls and letters for you, allowing you to take care of the rest of the things you have to worry about.

If you owe back taxes, find an experienced tax attorney to represent you. You'll get a more positive outcome than if you tackled the problem yourself, and you'll rest easier in the meantime.

Two weeks after the article was published, data on 12,500 overdue taxpayers was turned over to the three private collection agencies.

Paying Private Tax Collectors to Collect From You
The article explains that although I.R.S. official representatives agreed at the time that this will be more costly than collecting this "low hanging fruit" by using internal means, they felt as though Congress forced this step by not allowing the hiring of more revenue officers.

These private collection agencies are expected to rake in upwards of $1.4 billion over a ten year period, with the agencies about $330 million of the sum. Do you want to give these companies a portion of your hard earned money instead of paying the I.R.S. in full or at a reduced negotiated rate for your tax obligation?

I.R.S. Email Scams & Telephone Fraud -
Law makers and IRS agents who were against this privatization plan said that by involving these collection agencies there is a greater chance for abuse of the system.

With private companies in the mix, they said, debtors could more easily be tricked into paying money to scam artists calling the debtor on the phone or sending an I.R.S. e-mail scam. I.R.S. e-mail scams were a popular scheme among hackers and opportunists in 2005.

Nina B. Olson, an I.R.S. taxpayer advocate, warned Congress earlier this year,

"Because private collectors will operate under rules of profit maximization rather than the I.R.S.'s customer-service based policy, the private collectors may have less incentive to safeguard taxpayer rights."

Unmentioned I.R.S. Tax Penalties -
Al Cleland, a retired I.R.S. tax collector in Minnesota, predicted that using private collectors would cause some debtors to owe more than he/she did originally,

"We always told people to get current on their taxes first, so they would not have more penalties added, and then work on paying off their back taxes," Mr. Cleland said. "A private collection agency has no incentive to tell taxpayers that, so people will pay more penalties."

The private debt-collection agencies are outside the budget rules for Congress because, except for the start-up costs, the collectors are to be paid from the proceeds - commissions on your overdue taxes.

I.R.S. News Commentary -
You read it right folks. These agencies will make every effort to contact you because it puts a portion of your owed tax money in their pockets. Why else would a company volunteer for such a thing? Civil service duty? Being a good corporate citizen?

These companies have no reason to make you aware of penalties and time tax amnesty deadlines or even work with you and the I.R.S. Settle your debts in a more reasonable fashion by using offers in compromise and/or I.R.S. payment plans with our help.

The Future of I.R.S. Debt Collection -
You now have more reason than ever before to get delinquent taxes taken care of with the I.R.S. before these companies annoy, pester, and threaten you by phone calls and letters.

It is a sad state of affairs, but I.R.S. debt collection privatization is the new direction of the federal government. The original New York Times article stated that by 2008, about 350,000 past-due tax records will be distributed among about 10 private debt-collection agencies.

This problem is not going away any time soon. Get started by learning about your I.R.S. debt options and contact us today for your free tax help analysis.

Resources -
The New York Times

Article Source : How Much Tax Refund

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Both Seomul Evans & Neil Lemons are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Seomul Evans has sinced written about articles on various topics from Search Engine Marketing, Business Promotion and PPC Advertising. Seomul Evans is a consultant for leading