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Denver Tax Attorney

Dealing With Tax Debt


Have you found yourself deep in debt and yet still owing more money to the IRS? It’s a horrible feeling, but thankfully, with the help of a Denver tax attorney, you can rest easier. A tax attorney will help you figure out what to do with your debt and get you back on the financial track.

One of your options when confronted with tremendous tax debt is to file for an offer-in-compromise. This is an agreement you come to with the IRS that will resolve your tax debt. There’s only a few ways you can receive this deal. One is that there is doubt as to the correctness of the taxes due. The second is that there is doubt that the taxpayer will ever be able to repay the full amount owed. The last way that you can receive an offer-in-compromise is tricky. In this one, there is no doubt on the amount owed or the ability of the taxpayer to repay it. However, the taxpayer has to show the IRS that repayment of the full amount would be unfair and cause economic hardships. Consulting your Denver tax attorney will be the easiest way for you to go about filing for an offer-in-compromise.

The second option you could do to get rid of your tax debt is to request a payment plan with the IRS. Your Denver tax attorney can make a deal with the IRS to pay back the owed amount in a reasonable and affordable monthly payment plan. This way, the IRS doesn’t start to garnish your wages and your bank accounts.

Another way you can handle your debt is to file for bankruptcy. Filing for bankruptcy is serious business and can affect you for years and years to come. Many people don’t realize that tax debt can be discharged through bankruptcy. To be able to do this, your tax debt must be older than three years, and your tax returns for said debt have to have been filed at least 240 days prior to filing for bankruptcy. Even if your bankruptcy case does not go through, the actual petition for bankruptcy will halt any current IRS collections, and at least give you some time to recoup and possibly restructure the amount you owe. Your Denver tax attorney will be able to help you with both filing for bankruptcy and with the restructuring of your debt.

The last way to get rid of your tax debt is to have it declared uncollectible. Uncollectible status isn’t a full fix, however. It just puts your account on hold until such time as you’re able to begin repaying it again. Your Denver tax attorney may suggest this course of action so that you can get yourself back on your feet a bit.

Don’t let your tax debt overwhelm you. Speak to a Denver tax attorney today so you can get started on getting your life back on track.