Tax Debt Lawyer Scottsdale, AZ
Turn to a Scottsdale, AZ tax debt lawyer if you owe more money in taxes than you are able to afford. A lawyer will be able to set up a repayment plan for you and negotiate the rate which you must pay. They can also determine your eligibility for tax relief programs. Contact a lawyer today at Wright Law Offices for help.
Tips To Avoid Debt
If you are simply worried about tax debt, here are some tips to help you avoid it:
- If you are a business or contractor, make quarterly estimated payments. These amounts are estimated by an accountant. They look at how much you owed in taxes last year and factor in other information such as the rate at which your company is growing to estimate what you will owe the next fiscal year. They will then divide this into four, for the four quarters of the year, and create paperwork. Each quarter, you will make these payments to the government. Quarterly estimated payments are not required, but if not paid can result in a fine. It is recommended that you make these in order to owe less in taxes at the end of the year.
- Create a budget. Write down the goal for what you will make in a year. Factor in your current expenses, and then look up the general tax rate for your state — and don’t forget to verify what the federal tax rate for the year is. You can then use this to estimate what you will owe in taxes at which point you can create a plan on what you need to save monthly to pay at the end of the year.
- If you are employed for someone else, research what deductions you should claim in order to ensure the correct amount is being taken out of your paycheck so that you do not have to worry about owing taxes at the end of the year.
Steps After Debt
Sometimes, even if you follow all the tips listed above, you may still find yourself in debt for unexpected reasons. That is when you should reach out to a Scottsdale tax debt lawyer. They will be able to examine your case and determine which steps to take. Only extreme cases normally qualify for assistance programs from the government. This means that if your lawyer finds that you are not eligible for any of these programs, they will work to negotiate what you owe with the IRS as well as create a payment plan that fits in your budget and meets the government’s rules on timelines.
Tax law can be very complex. Having a knowledgeable attorney by your side can also have the added benefit of preserving your peace of mind. They will take care of all the paperwork necessary for your case and interact with the government so that you do not have to do so. They are here to represent your best interests. Contact a Scottsdale tax debt lawyer at Wright Law Offices for help.
Speak With Our Tax Debt Lawyer
As a Scottsdale, AZ tax debt lawyer knows, it can be difficult for many people to pay taxes to the IRS, whether it is your business taxes, your personal taxes, or payroll taxes. Although owing money to the IRS can seem scary and there can be serious implications, working with a lawyer you can count on from Wright Law Offices can make the difference between working out a repayment plan or having penalties imposed. The sooner you are able to get in touch with one of our lawyers, the sooner we can begin working toward a better solution for you. Give our office a call when you are ready to look at the options that are available to you.
What makes tax debt so difficult?
Debt is one of the hardest things to get out of because it is so easy to lose control of how much you owe. This kind of debt can quickly spiral and you may have a more difficult time making payments when you owe larger amounts of money. Further, you may be surprised to find that the IRS can not only garnish your wages but also seize your property. That means that even if you were counting on your money for other things that you find necessary, you may suddenly have a difficult time paying for groceries or other bills.
While it is possible to speak with the IRS on your own, you may be cautious and nervous to do so. Many people are concerned about the IRS using scare tactics or making threats. When you work with a lawyer, they can negotiate on your behalf while educating you on what you can do to relieve your tax debt. Even though you may be intimidated speaking with someone from the IRS, your Scottsdale tax debt lawyer can do this on your behalf.
What are my options when I am dealing with tax debt?
When you are dealing with tax debt, you have several routes you could go down. One thing your lawyer may recommend is filing for bankruptcy. If you are eligible for Chapter 7 bankruptcy, this can give you the chance to discharge all of your debts through liquidation. Additionally, if you are eligible for Chapter 13 bankruptcy, you have the opportunity to restructure your tax debt so that you can whittle away your debt through more affordable monthly payments.
Knowing that you are struggling with debt and that you owe the IRS money can feel hopeless. However, your lawyer can help you with an IRS tax settlement. In Arizona, you have the option of a payment plan, having a Currently Not Collectible status, and an Offer in Compromise. Your lawyer will know which forms you need to fill out and how long you will have to submit these forms.
Speak With Us Today
You should not hesitate any longer when you are struggling with IRS debt. Typically, the longer you wait to pay, the more severe the penalty will be. If you would like to see what Wright Law Offices can do for you, schedule a consultation now. Our Scottsdale tax debt lawyer is here to help you discover which option might be best for you.
What to Do When Tax Debt Collection Goes to Court
Not paying your taxes can have serious consequences — including being taken to court where you will need the help of a Scottsdale, AZ tax debt lawyer on your case. Many people are unaware of the process that takes place when they are sued by tax debt collection agencies. To help, we’ve broken down what happens when tax collectors take you to court and how best to deal with it. Learn more about this process, and then contact Wright Law Offices for help.
The First Step: Receiving a Summons
When you owe back taxes, the IRS will usually send you notices via mail or email, warning you about your unpaid taxes and giving you a chance to pay up before legal action is taken against you. Once all other attempts fail, the IRS may issue a summons from the court that requires you to appear in person at a hearing in front of a judge or jury. Failing to appear will result in an automatic judgment in favor of the IRS and could even lead to jail time for contempt of court charges. It is important that if you receive this summons, you take it seriously and do not ignore it; contact a Scottsdale tax debt lawyer as soon as possible so that they can advise on how best to proceed with your case.
Dealing with Your Tax Debt
At this point, your attorney can negotiate on your behalf with the IRS regarding any outstanding payments due. This can include reducing the amount owed (known as an Offer in Compromise) or setting up an installment plan where payments are made over time until the full amount is paid off. In some cases, negotiating with the IRS may be easier than dealing with debt collectors since debt collectors do not always have authority over payment plans and compromise offers. However, if negotiations break down then there may be no choice but for the debt collector to take legal action against you.
The Final Step: Resolving Your Tax Debt
If negotiations cannot be reached between yourself and your debt collector then you will need to appear in court for a hearing where both parties present their arguments as evidence before a judge or jury makes a ruling on whether or not any money is owed and how much should be paid by whom. It is important that when preparing for this hearing — with assistance from your attorney — you ensure that all documents and evidence presented is accurate so that there is no room for dispute later on down the line. Once all evidence has been presented at court, then hopefully an agreement between both parties can be reached regarding repayment terms or even dismissal of any claims made against you by the debt collector.
No one wants to be taken to court by their tax collector because it can potentially put them in financial difficulty and could even lead them into prison if ignored completely. If ever faced with such a situation it is highly recommended that professional legal advice is sought out as soon as possible so that any potential issues arising from being sued by a debt collector can be resolved quickly and efficiently without further damage being done either financially or legally-speaking; hopefully resulting in either settlement terms being agreed upon or complete dismissal of any claims made against them altogether. Contact a Scottsdale tax debt lawyer at Wright Law Offices today for help.
Scottsdale Tax Debt Infographic
Legal Strategies For Reducing Your Tax Debt
A Scottsdale, AZ Tax Debt Lawyer understands that dealing with tax debt can be stressful and confusing. At Wright Law Offices, many of our clients come to us with questions about how to manage their tax obligations effectively. Focusing exclusively on bankruptcy law, we are here to provide clarity and guidance to help you resolve your tax issues with confidence.
How Can Someone Determine If They Owe The Taxes The IRS Claims They Do?
First and foremost, we recommend obtaining a detailed account transcript from the IRS to verify the accuracy of what they claim you owe. This transcript provides an item-by-item display of your tax account transactions, including assessments, payments, and any applicable penalties or interest charges. It’s important to review this information carefully or have a professional review it to ensure that there are no errors in the IRS’s calculations.
What Are The Consequences Of Not Addressing Tax Debt?
Failing to address tax debt promptly can lead to increasingly severe repercussions. The IRS may implement aggressive collection measures, such as garnishing wages, levying bank accounts, or placing liens on your property. Such actions not only affect your current financial stability but also have long-term consequences on your credit score and financial reputation. Proactive engagement with tax debt is essential to prevent these drastic measures and to maintain your financial freedom.
Is It Possible To Reduce The Amount Of Tax Debt Owed?
Indeed, reducing your total tax debt might be possible through several IRS programs, depending on your specific financial situation. The Offer in Compromise program, for example, allows qualified individuals to settle their debt for less than what is owed. This program requires a thorough assessment of your income, expenses, asset equity, and ability to pay. Another viable option is seeking penalty abatement, which can significantly reduce the amount owed if you can prove that failure to pay was due to reasonable cause and not willful neglect.
Are Payment Plans Available For Managing Tax Debt?
The IRS provides several types of payment plans tailored to different financial situations. Short-term extensions can give you up to 120 days to pay your debt in full, while long-term installment agreements allow you to pay over a more extended period, often making the debt more manageable. These agreements consider your current financial condition and tax obligation, offering a flexible way to manage debt without adding undue stress. A Scottsdale tax debt lawyer can assist in negotiating terms that fit your financial capabilities, ensuring that payments do not become a burden.
What Should Someone Look For When Choosing A Professional To Help With Their Tax Debt?
Selecting the right professional to assist with tax debt is critical. You should seek out individuals who are not only licensed but also have a proven track record in tax resolution. This includes attorneys or certified public accountants who specialize in tax negotiations and understand IRS protocols thoroughly. A qualified Scottsdale tax debt lawyer should offer transparency about their approach and provide a strategic plan tailored to your specific tax issues, ensuring that your rights are protected throughout the process.
If you have any further questions or need assistance with your tax debt, we are here to help. Our team at Wright Law Offices is committed to providing you with the support and expertise needed to resolve your tax issues effectively. We encourage you to contact us at our locations in Phoenix, Scottsdale, and Tempe, Arizona, to discuss your situation and explore your options. Remember, you don’t have to face these challenges alone; let us guide you toward a resolution.
Top 6 Tips For Handling Your Tax Debt
1. Assess Your Current Situation
According to a Scottsdale, AZ tax debt lawyer, taking stock of your financial standing is the first step to addressing tax debt. Look at your income, assets, and outstanding debts beyond your taxes. Knowing your financial situation helps us evaluate the most appropriate strategies for you. We recommend prioritizing secured debts, as failing to pay these can lead to asset forfeiture. Meanwhile, understanding your tax debt specifics—such as how much you owe and the associated penalties—helps us understand the way forward.
2. Organize Your Tax Documents
Having all relevant documents organized and accessible is essential for tackling tax debt effectively. This includes any past tax returns, notices from the IRS or state agencies, records of payments made, and any correspondence you’ve received. With these materials readily available, it’s easier to identify potential errors and discrepancies in your tax assessments, which could reduce the amount you owe. Clear and organized records allow us to build a stronger case for resolving your tax matters.
3. Consider Payment Plans
If you cannot pay your tax debt in full, payment plans might offer relief. The IRS and many state tax agencies provide payment options for qualifying individuals. For instance, you could opt for an installment agreement, which allows you to make monthly payments over a set period. Alternatively, some may qualify for a short-term payment arrangement if they can pay within a few months. These plans require approval from the IRS, and knowing the right one to apply for can save time and reduce added penalties.
4. Look Into Penalty Relief Options
In certain cases, taxpayers may be eligible for penalty relief. The IRS offers a few relief options that could reduce or remove some penalties related to late payments or filing errors. For example, first-time penalty abatement may apply if you meet specific criteria, such as having a good compliance history. There is also reasonable cause relief if you can demonstrate that unforeseen circumstances prevented timely filing or payment. A Scottsdale tax debt lawyer can guide clients through the eligibility criteria and application process to determine if these options are viable.
5. Be Mindful Of Tax Liens And Levies
When tax debt goes unpaid, the IRS has the authority to place a lien on your property or levy your assets, which can significantly impact your financial stability. A tax lien is a claim on your property, while a levy allows the IRS to seize assets, including wages or bank accounts. Addressing your tax debt promptly can help you avoid these consequences. If a lien or levy has already been issued, we can help explore options to release or reduce the impact, keeping you informed of your rights and obligations.
6. Know When To Seek Legal Assistance
Addressing tax debt alone can feel overwhelming, but experienced legal guidance can ease the process. Our Scottsdale tax debt lawyers work closely with clients to explore all available options, including installment agreements, penalty relief, and other settlements. With us by your side, we’ll make sure you understand each step in managing your debt and help safeguard your financial future. When tax debt issues arise, knowing you have a reliable advocate on your side can make a significant difference.
If you’re ready to take control of your tax debt and regain financial stability, reach out to us at Wright Law Offices today. With over a decade of legal experience, we’re here to provide straightforward, and quality guidance tailored to your unique situation. Let’s discuss your options and help you get started on a clear path forward.
Scottsdale Tax Debt FAQs
According to a Scottsdale, AZ tax debt lawyer, tax issues can be stressful and overwhelming, especially when dealing with debt owed to the IRS or state tax authorities. If left unresolved, they can lead to long-term financial strain and significant consequences. Many people need clarification about their rights and options, which is why having access to clear information can make a big difference. We’ve compiled some of the most common questions and answers to provide clarity and guidance for those facing tax challenges.
What Does A Tax Debt Lawyer Do To Help With Unpaid Taxes?
We help individuals and businesses address unpaid taxes by reviewing your specific situation and identifying the most effective solution. This could involve negotiating payment plans, reducing penalties, or exploring options like Offers in Compromise. We analyze your financial situation to determine what relief programs you may qualify for and ensure that all necessary documentation is prepared and submitted correctly.
Can A Tax Debt Lawyer Stop IRS Collections Or Wage Garnishments?
Yes, we can take steps to halt aggressive collection actions such as wage garnishments, bank levies, or property liens. By engaging with the IRS and using available legal tools, we aim to protect your assets and income while resolving the underlying debt. For example, we might file for a Collection Due Process hearing or secure a temporary hold on collections while working on a resolution. Quick action is often essential to prevent further consequences, and we prioritize creating a strategy that minimizes disruption to your life and finances.
Is It Worth Hiring A Tax Debt Lawyer If My Debt Is Small?
Even with smaller debts, the consequences of unpaid taxes can escalate over time. Interest and penalties can compound quickly, turning a manageable amount into a much larger issue. Our Scottsdale tax debt lawyers can resolve matters more efficiently, saving you time and stress in the process. In many cases, addressing the issue early can prevent it from becoming a larger financial burden or impacting your credit score and financial future.
How Long Does It Take To Resolve Tax Debt?
The timeline for resolving tax debt varies depending on the complexity of the case and the solution pursued. Some cases may be resolved in a matter of weeks, while others can take months. Our goal is to work as efficiently as possible while ensuring all steps are handled thoroughly and correctly.
Will Working With A Tax Debt Lawyer Reduce What I Owe?
While we can’t guarantee a reduction in the amount owed, there are situations where penalties and interest can be reduced or eliminated. Our Scottsdale tax debt lawyers will explore all avenues to achieve the best possible outcome for you, including penalty abatement and other relief options. Every case is unique, and we take the time to understand your situation fully before recommending a course of action.
When tax debt issues arise, it’s important to take action promptly to avoid further financial and legal complications. Delaying can lead to more severe consequences, including increased debt and more aggressive collection efforts. Focusing exclusively on bankruptcy law, our team at Wright Law Offices is here to provide straightforward solutions and clear communication every step of the way. If you’re struggling with tax debt, we encourage you to reach out today for a free consultation. Let us help you move forward with confidence and peace of mind, knowing you have a dedicated partner by your side.