An IRS tax attorney will be needed if you run afoul of the IRS for a large amount of money; sometimes for a small amount of money. Make sure the attorney is a licensed tax attorney. They are expert in negotiating with the IRS in debt settlement.
Businesses face greater problems with the IRS that individuals do not face. For example a business is a debt collector since it collects taxes on its employees. If the employer does not remit these taxes to the IRS, as the employer should, the IRS works quickly and before you know it you will see this business padlocked with IRS notices around the door.
As an aside it is almost inconceivable to image that a business would enter into negotiations with the IRS without assistance from a firm of IRS tax attorneys, yet individuals undertake such negotiations all the time. The sensible thing to do would be to speak to an IRS tax lawyer for their opinion on any matter which you believe may not be simple and straightforward. This would not cost much and would provide you with much needed clarity over whether you might fall foul of some regulation that you were unaware of.
Businesses must pay taxes to the government each quarter. Many forms also must be submitted. If you miss any payments or the forms are not submitted, the penalties begin to be charged with interest on top of these. Sometimes honest mistakes are made since there are many complicated forms to be submitted. Income, social security, unemployment and business taxes need to be paid on a regular basis. If the business begins to fall behind in the submission of the taxes and documents, it is difficult to get back on track and trouble begins to loom.
IRS tax lawyers are useful when you fall behind in taxes and your business is forcibly closed. You now cannot earn money to pay the government and the employees are now unemployed. Kind of like debtor’s prison where you languish in prison and cannot work to pay the debt back. The IRS tax relief attorney can negotiate to keep the business open. A good IRS tax attorney can show there were mitigating circumstances for the error and get some of your penalties nullified. If you wait too long to hire a good IRS tax attorney, the problem will become too complex and the amount of money owed will skyrocket so much, that there will be little hope in continuing in business.
The goal for the IRS tax attorney is to negotiate a settlement that will decrease what you owe in addition to eliminating penalties and interest. Negotiations whether the amount can be paid in installments rather than in a lump sum. The IRS will definitely charge interest for installment payments.
There are many advertisements stating that your debt to the IRS can be negotiated down to 10% of what is owed. These are exaggerated claims and you should ask for proof before engaging one of these attorneys. Your IRS tax attorney can, if all else fails, discharge your debt through bankruptcy proceedings under chapter 7 or 13. Sometimes you are so deep in debt this is the only way to go.
It is not easy being a small business owner. The IRS can wait you out, they know IRS tax lawyers are expensive. On the other hand the “too big to fail” businesses can assemble a legal team that is more than a match for the IRS. Like it has always been, the small are sacrificed so the large businesses thrive. After all the large concerns make huge political contributions, and the IRS is often used as a tool of reprisal. So if you want to know the best advice it would be to involve an IRS tax attorney early into your business dealings and consult with them often. The IRS tax attorney can help steer you through the difficult waters in which the IRS swims.