Tax Practice
If you do not really owe what the government says you owe, you have ways to correct it. You may need to file an amended return. If you’ve been audited and you disagree with the findings, you can protest and file for a redetermination. You can use the Offer In Compromise program and make an offer of $1.00 to resolve the matter based upon the fact that you really owe nothing. If need be, you can contest the tax in Tax Court. You can do these things yourself, but you will most likely have the most success by hiring a lawyer experienced in these matters.
If you cannot do anything about what you owe, there are ways to deal with your tax debt without losing your assets or suffering the embarrassment of having your salary garnished. You can ask for additional time to arrange your finances such that you can pay the bill in full. You can request an installment agreement that will allow you to pay your bill over a period of up to six years. Though difficult to obtain, you can request an offer in compromise that will let you satisfy the bill for less than what you owe. And finally, you may be able to have the taxes discharged in a bankruptcy. Please see Tax/Bankruptcy on this website for more details.
A lien is public notice, filed in your local courthouse, that states that you owe taxes to the government and the government now has the right to take your property to satisfy the bill. A levy is when the government does that taking. It can be in the form of seizing whatever is in your bank account or a continuing garnishment against your wages. But before they can issue the lien or the levy, they have to give you notice. When you receive the notice, you should file for a Collection Due Process hearing which will buy you enough time to file any late returns and work out an installment agreement.
The Internal Revenue Code is six inches thick of thin paper and fine print. It is impossible to list all the ways people can find themselves in trouble with the IRS. It takes someone specifically trained in tax law and years of experience not to be overwhelmed by some of these tax issues. Only trust a tax professional with your tax problems.
