FAQ

Have questions regarding tax laws and your IRS tax debt? Our Tucson tax attorneys have put together this collection of commonly asked questions about IRS tax problems.

TAX COLLECTION

Accountants are good at crunching numbers, knowing laws about taxation and doing taxes. Some may even be willing to help you do tax planning. They can also legally represent you in front of the IRS for your tax debt resolution problem, but that doesn’t mean that they should or even that they are the best person to represent you.

Tax debt collection law is not something that most accountants are really familiar with, nor should they be. Tax collection representation may very well take into account other areas of law such as marital dissolution law or marital property law. There may be real estate law issues or even constitutional law issues. Not only do most accountants not have any background in these areas, most of them don’t even know that there are other legal issues that may come into play. Also, most accountants are not schooled in negotiation methods and most are certainly not experienced in negotiating with the IRS. This just is not where most accountants spend their time.

You would be better off to let your accountant do your taxes and hire a knowledgeable tax resolution lawyer to handle your tax debt problem. If you do you will most likely obtain a better resolution of your problem in the vast majority of the cases.

Not necessarily. Just because someone is an ex-IRS agent doesn’t mean that they really have the appropriate knowledge or temperment to handle your tax debt matter appropriately. There are many divisions of the IRS. They do not all have to do with the collection of taxes. For example, the audit division never deals with tax collection. All that they deal with is checking the accuracy of various types of tax returns. An IRS auditor is called a Revenue Agent. A person who works for the IRS in the tax collection division is called a Revenue Officer. Obviously an ex-revenue officer is going to know more about tax collection matters than an ex-revenue agent. There are many other types of IRS employees. Some IRS employees, when they quit or retire from the IRS want to get into the business of representing tax debtors. All they have to do is take a test to become what is known as an Enrolled Agent and then they can take on representing people with tax debt collection problems.

This doesn’t mean that they have any practical experience in tax debt collection matters even though they used to work for the IRS.

There are a couple of other issues that you need to consider when hiring someone to represent you in tax matters. Many times there are other legal issues involved such as State marital and divorce laws, real estate laws and business laws. The only type of representative that is qualified to recognize these other types of legal issues as they affect tax debt collection is an attorney. There are many times that State legal matters must be dealt with before appropriate relief can be obtained under the Federal tax statutes. Only a duly licensed attorney can handle these matters. Also, there may be a question as to whether you may need to think about bankruptcy. Again, the only qualified person to advise you is a licensed attorney.

The last issue to consider is not always a problem, but when it is you won’t be able to see it. Many people who work for the IRS for their entire adult lives have trouble seeing tax issues from the side of a person who has not paid their taxes. Sometimes this attitude prevents such a person from effectively coming up with creative ways to solve your tax problem.

Always ask questions about a persons specific background and work in the IRS. However, it is normally best to be represented by an attorney who will be able to see all legal issues that might be involved and will then have the ability to deal with them.

The short answer is that you may not need a lawyer to represent your interests with the IRS. However, you should arm yourself with all the information that you can get about your situation. If you owe less than $10,000 to the IRS and can afford to pay the entire amount either in one lump sum or through an installment agreement, then you probably don’t need representation. There are also other situations where it might be o.k. to deal with the IRS by yourself. However, for the vast majority of cases it might be foolish for you to talk to and deal with the IRS by yourself. What I would advise would be to amass as much information as you can about your specific problem and then at least consult with a qualified tax lawyer to determine whether you really need representation. Many tax lawyers will give you a free initial consultation. I emphasize talking to a lawyer because, by law, anything that you say to an attorney will be confidential. This is not true with other types of representatives such as CPAs and Enrolled Agents. Attorney Sheldon Lazarow does provide a free, no-obligation, half-hour consultation. Contact him at 520-623-5856 to discuss whether representation would be appropriate in your situation.

We are sorry that you had trouble with your tax representation by another company. The Lazarow Law Firm has represented a large number of people in your shoes. We can do nothing to get your money back from the other company, but we can and do represent our clients to the best of our abilities until we find a way to resolve their tax problems. Sheldon Lazarow has been practicing law since 1976 and has an AV Preeminent rating from Martindale-Hubbell, the largest and oldest attorney rating company. This is the highest rating that an attorney can get. Of course, no representative can truthfully guarantee any particular outcome with the IRS, but we have not been in business all these years with the recognition that we have obtained without being very well respected and successful. Call us now at 520-623-5856 to see how we can help you.

The IRS certainly has the power to close your business and seize all of the business assets including the accounts receivable. However, you don’t have to let it get that far. The IRS is greatly concerned about businesses keeping current with their employment tax deposits even if the business owes back employment taxes. If you are currently depositing all of the required employment taxes on the time schedule that is required by law, then the IRS will be willing to work with you on the back tax debt. You must do everything that you can to be current with all future deposits. Then, don’t ignore the fact that you owe back taxes. Contact a tax lawyer who can help you resolve the problem with the IRS. Contact the Lazarow Law Firm at 520-623-5856 for ideas about how to become current with your employment tax deposits and to discuss resolution of the back tax debt.

You are most likely referring to all of the advertising hype that fills the country’s T.V. and radio airwaves these days. The reference to paying pennies-on-the-dollar usually refers to an Offer in Compromise. This is a remedy for past tax debts that is allowed by U.S. tax law. The problem is that not everybody meets the qualifications set out by tax law to file a valid Offer in Compromise. Many tax debt resolution companies will falsely lead people to believe that they can file an Offer in Compromise with the IRS and offer to pay a lesser amount than they owe. Also, they really can’t tell if you are a proper candidate for an Offer in Compromise by asking you a few questions over the phone. A deeper analysis is required. Although they can file the papers for an Offer in Compromise, what these companies fail to tell you is that the majority of “Offers” are denied by the IRS. The greatest reason for this is that the Offer was not the appropriate remedy in the first place. Although Offers in Compromise are definitely good remedies in the right situation, there are many remedies available to deal with delinquent tax problems. Some of those remedies may even be better for you depending on your particular situation. It takes a professional that is knowledgeable and experienced in tax debt matters to be able to analyze your situation appropriately and present the best possible remedies to you. Contact Attorney Sheldon Lazarow at 520-623-5856 to discuss the remedies that might be available to you.

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