Tax Debt Resolution

The simplest way to resolve back taxes is to pay the full amount, including the additional failure-to-pay fee. With all of the interest and additional fines that add up over time, if it is possible for the taxpayer to use this method, it is often the best.

Many people in need of tax debt help may pay any price to get assistance, and thus hire a tax debt attorney. While this certainly decision is understandable, hiring a tax lawyer in some cases may be premature or even unwise. At the very least, working with a tax lawyer is bound to be expensive, with fees ranging from $250 to $700 per hour.

Another way one can achieve tax debt resolution is by filing for bankruptcy. However, not all taxes can be discharged in this way. It depends on the type and age of the tax related debt (For example, newly accrued tax debt cannot usually be resolved by bankruptcy, neither can taxes on business-related federal income.)

When it comes to dealing with IRS back taxes, you will want to resolve them as quickly as possible. Everyone has heard the horror stories of people losing homes, losing assets, getting wages garnished etc. The IRS has more powerful collection mechanisms than any other collection agency in the United States. The good news is that they do give you fair notice and they are willing to work with you. Ignoring the IRS can be a very bad mistake, so resolve back taxes as soon as you can.

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