Tax Problems Need Experts To Find A Solution

By: Stewart Wrighter | Posted: 04th May 2011

For most of us, paying our taxes in full and on time is done automatically. However, there are those who get themselves into some serious trouble by not fulfilling what the taxman wants, when he wants it. For these people, litigation is bound to follow unless they make arrangements with the tax office to settle all outstanding bills. One such compromise is an offer in compromise (OIC), while other includes IRS wage garnishments (WG).

An OIC is something which has to be agreed upon with the tax office and the individual who owes the tax. In general terms, the taxman will take less than the amount owed if there seems to be no chance of getting the full amount. However, if the taxman believes that there is any way of getting all that he is owed, he will certainly not go into this agreement in the first place. This is really not a compromise but it is cutting losses of chasing someone who has virtually no chance of raising the said amount. In most cases, this can be paid in installments if the agreed amount is not available at one go.

A WG is how the taxman takes his cut direct from the salary of the person who owes him money. Although, this may look a little draconian, the taxman will try his level best to get the miscreant tax payer to settle his debts himself in an organized manner. The taxman will only resort to this kind of action when all other avenues have failed. There are ways to stop the WG from happening but this takes a tax expert attorney to figure out which is the best action to take. Of course, as with all tax matters, finding the appropriate expert is vital to stop the taxman from taking his proverbial pound of flesh.

There are mitigating factors which halt the taxman in his steps and these can be used whenever it looks like he is getting too close to the assets held by the debtor. For example, it may be that the assets that the debtor owns are equal to, or greater than the amount of tax owed. Simple, one would think, just sell them off and pay the guy. Wrong! If the debtor has a child who is seriously ill, and the assets must be held to help pay for treatment, then the taxman is not allowed to take the assets into consideration. In fact, in some extreme cases, the amount owed is waived.

It is obvious then that everyone who pays tax may one day get into a position where they fall behind in their payments to the taxman. Some people employ a tax expert on a retainer so that he knows about the finances of the individual very well at all times. However, even those who do not have an expert at hand can find one simply by surfing the internet and looking for those experts in the field who specialize in this kind legal altercation.


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Stewart Wrighter recently searched the termOffer in compromise to find an advocate to help with an IRS tax lien. He searched the termIRS wage garnishments to find a professional for help.
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Tags: money, avenues, irs, losses, debts, assets, salary, serious trouble, debtor, installments, litigation, offer in compromise, tax payer, tax expert, wage garnishments