A spokesman for the Internal Revenue Service said in 2009 that more than eight million Americans owed $83 billion in back taxes, including penalties and interest. That is more than $10,000 for each of the eight million taxpayers encompassed in that estimate. The number of people who owed back taxes is considerable, and the amount owed is staggering. And the number is likely to have grown since 2009.
Why Do People Fall Behind on Their Taxes?
Most people have an adequate amount withheld from their weekly paychecks to cover their IRS bill each year. In fact, many people receive a refund because too much was withheld. So how do so many millions of people fall behind on their taxes each year? According to tax experts, people fall behind on their taxes for a number of reasons. Some of these include:
• Too busy: Some people feel overwhelmed by the paperwork and intend to prepare their tax return but keep putting it off.
• Life disruptions: These could include death, illness, divorce or unemployment, and prevent many people from timely filing or payment of their taxes.
• Insufficient funds: Sometimes people simply don’t have enough money to pay their tax bill.
• Underwithholding: Some people claim too many exemptions and wind up owing more in taxes than they can easily pay.
A Lawyer Can Help You in Your Back-Taxes Dispute with the IRS
The IRS has online forms for people to apply for payment plans to help people with back taxes. However, these plans are not a one-size-fits-all solution for back taxes problems. They are designed to deal with relatively common situations and relatively small amounts of money owed. They are not appropriate for all taxpayers who owe back taxes.
In fact, there are many situations where it is highly advisable to retain a tax attorney to help guide you through your tax situation. For instance, if you are facing an audit, an experienced tax attorney can help dramatically reduce your potential tax liability, or even avoid it altogether. A tax attorney can serve as your negotiator with the IRS, thus leveling the playing field by pitting your experienced negotiator against those of the IRS.
Further, an attorney can help you in situations where the online payment plan applications provided by the IRS do not apply. An attorney can help steer the IRS away from inappropriate lines of inquiry and keep the focus on negotiating your tax debt. An attorney experienced in dealing with the IRS will know the methods that work best and is unlikely to be intimidated by the IRS negotiators.
If You Have a Dispute with the IRS Over Back Taxes in the Atlanta or Marietta Areas, You Should Contact Tax Attorney Jeff Cohen, Attorney at Law
If you owe back taxes to the IRS and are fighting collection efforts, you should seek legal advice. The IRS has more experience than you and will use that experience to get everything they can. An experienced advocate can help you reach a better agreement. To help you deal with the IRS, in the Atlanta or Marietta areas, contact tax attorney Jeff Cohen, Attorney at Law. You can call me at (404) 814-0000 or use my online contact form.