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We can help stave off IRS collection efforts

| Sep 27, 2019 | Federal And State Tax Collections |

Previous posts on this blog have described the broad powers the IRS has to pursue a person’s wages and property in order to collect a delinquent tax debt. For instance, the IRS has the power to use wage levies, which work a lot like garnishments. Unlike traditional garnishments, though, the IRS does not have to go to court before issuing a wage levy.

Moreover, the levy is not capped; instead, the IRS can take the excess over a certain minimum amount. The minimum amount is just a little over $1,000 a month, which is not much for someone to live off, particularly in the areas around New York City.

For this and other reasons, it is important for a resident of White Plains to consider legal help even at the first sign that the IRS is going to pursue collection action against him or her. Likewise, businesses in the area should act quickly in such circumstances, as failing to do so could cause serious financial damage to their business and, possibly, even its demise.

Even before formal collections start, our law office can help stave off the worst consequences of owing back taxes by advising our clients on how to address the debt in a proactive fashion.

However, even if an account does fall into delinquent status, we can still help our clients. For instance, we may be able to negotiate an acceptable offer in compromise, in which an individual or business can pay, often in a lump sum, a percentage of what they owe. This process can save thousands of dollars in tax debt.

In other cases, such as when an offer in compromise is not available, we may still be able to convince the IRS to suspend collection efforts while a person makes payments in agreed installments. Using this approach, a person or business can work off its tax debt without in manageable chunks.