Tax Collections Attorney in Salt Lake City, Utah
In Utah and across the United States, eligible taxpayers are often required to file income tax returns and pay their taxes annually. Generally, failure to pay taxes is considered a violation of Utah state law and federal codes. Also, this may lead to fines, interest charges, and other applicable penalties. If you need help when filing your taxes or settling issues with the tax authorities, sitting down with a Utah tax law attorney is important for reliable advocacy.
At Common Law PC, I enjoy helping clients through their tax collection matters. I’m available to discuss the conditions and strategize an effective approach to help file your income tax returns and avoid potential issues with the IRS. Also, I have the resources to resolve tax-related issues, answer IRS correspondence, and help ensure compliance with all required state, local, and federal tax codes.
My firm – Common Law PC – proudly serves clients across Salt Lake City, Utah, and the surrounding communities of Provo, Park City, St. George, and Ogden.
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IRS Tax Collections
As an eligible taxpayer, among your obligations include filing your income tax returns, reporting your earnings, and eventually paying your taxes in full. However, taxpayers who fail to pay their taxes fully will get a bill from the IRS. This marks the beginning of the tax collection process.
What’s more, the first bill from the IRS will outline your unpaid tax amount and inform you to pay the outstanding balance. The first bill will also include details about tax due, interest charges, and possible penalties for defaulting.
Types of Collection Methods
As mentioned earlier, it is your obligation to either pay your tax-due amount or contact the IRS upon receiving the first bill. However, if you delay or fail to pay the outstanding amount, the tax authorities may take various legal steps to recover the unpaid amount. Some collection methods often employed by the tax authorities to get unpaid taxes include:
Notice of Federal Tax Lien
The IRS can file a notice of federal tax lien to claim your assets or real property. Through a federal tax lien, the IRS or government can establish interest and claim your home or other personal property because you failed to settle your unpaid taxes.
Filing a Bank Levy
Alternatively, the IRS can file a bank levy to lawfully seize your property and assets in order to cover your outstanding tax amounts. The government or IRS will serve a bank levy through the court to repossess and sell your assets. The net proceeds from the sale will be used to cover your outstanding tax debts. In addition, the tax authorities can garnish your wages, retirement savings, or take part of or all the money in your bank accounts.
Collection Due Process Hearing
Also, you can request a Collection Due Process (CDP) hearing. The hearing allows you to appeal any tax collection action taken by the IRS, including federal tax liens and bank levies. At the CDP hearing, you can dispute the outstanding amount you owe.
Essentially, the final notice you receive from the tax authorities will inform you of your rights to a Collection Due Process hearing before the IRS can take any collection action against you in order to get unpaid taxes.
Statute of Limitations
The statute of limitations for the IRS tax assessment is three (3) years from the date you last filed your taxes. Hence, the tax authorities will have up to three years from the date you filed your taxes to audit or review your tax amounts.
Tax Compromises and Negotiations
If the outstanding taxes that you owe are more than what you can conveniently repay, you may be able to seek relief through any of the following options:
Offer in Compromise
An offer in compromise allows you to repay your back taxes for less than the actual amount you owe. If paying back the full past-due taxes will put you in financial instability, the tax authorities may reduce your outstanding taxes through a settlement offer.
If you earn a reasonable income and you can repay your back taxes over time using your monthly income, you may be able to negotiate an installment agreement with the IRS to settle your unpaid taxes.
IRS Tax Payment Plans
If you’re unable to repay the actual amount of your past-due taxes, you can request additional time from the IRS through a short-term or long-term payment plan, depending on the amount you owe.
Lastly, penalty abatement can help eliminate an imposed tax liability. If there is a delay or error from the IRS, you can seek penalty abatement to partially wipe out your tax liability.
Penalties and Interest
Unfortunately, if you fail to file your past-due taxes and outstanding tax amount, you may be subject to fines, interest charges, and late payment penalties, such as:
Failure to pay taxes reported on your return.
Failure to pay proper estimated tax.
A practiced Utah tax attorney can explore your available legal options to settle your outstanding tax amounts and help you avoid any of these penalties and interest for non-payment.
How Legal Counsel Can Help
Filing income tax returns, repaying past-due taxes, and resolving tax-related issues with the IRS can be complicated and overwhelming. Regardless, dealing with the IRS on your own is never advisable. Therefore, if you need help when filing your taxes, you should speak with an experienced tax law attorney to avoid costly mistakes.
At Common Law PC, I have the diligence and expertise to assist and guide clients through the complex procedures involved in filing tax returns and repaying past-due taxes. With my extensive knowledge, I can explore your available legal options and determine the ideal option to pay your current and back taxes. Also, I can contact the tax authorities on your behalf to negotiate a reasonable repayment solution and settle any ongoing tax issues.
Tax Collections Attorney Serving Salt Lake City, Utah
If you need detailed guidance when filing taxes or settling tax-related issues, contact me at Common Law PC today to schedule an initial consultation. I can offer you the personalized legal counsel and dedicated advocacy you need to navigate crucial decisions in your tax matters. My firm is proud to serve clients across Salt Lake City, Provo, Park City, St. George, and Ogden, Utah.