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How Does an Attorney Assist with Unpaid Taxes in Denver?

— November 10, 2022

One of the ways that attorneys help is with the process to speak to the IRS to make a reasonable repayment plan.

Denver, CO – Filing taxes each year is a stressful time for many Americans, and these feelings are justified because there are plenty of problems that can occur. One of the worst things is when the IRS claims that the person filing owes them money, especially if the person has a large outstanding amount. Aside from having to hand over a percentage of the money that the person worked for the entire year prior, the government also has additional powers to collect any money that is owed to them. People who are having serious problems with their tax liability should get legal advice as soon as possible. 

What can the IRS do related to unpaid taxes?

The government has the authority to take away a percentage of wages, freeze bank accounts, seize property, or even file criminal charges in situations involving unpaid taxes. There are also fees and interest that are added to outstanding or late taxes. These serious consequences may potentially be avoided with the help of an experienced taxation attorney. There are ways to make various kinds of arrangements with the federal government to minimize many of these problems, although it is recommended for a person to have legal help when dealing with the IRS or making other significant tax decisions.

What happens when a person cannot afford to pay their taxes at the time they are owed?

The IRS offers what is essentially a hardship excuse. This requires them to examine the person’s income and past due account, and they may agree that the taxes cannot be paid as due at the time. However, this is not always easy to do as the IRS can disagree that the person cannot pay because they are spending too much of their income, they have a budget that seems unreasonable, or they can notice other problems.  

How can tax lawyers in Colorado help?

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One of the ways that attorneys help is with the process to speak to the IRS to make a reasonable repayment plan. There are various ways to start to pay the money back, but installment plans can vary based on the person’s income, total debt, and other issues. There is another special type of filing called an Offer in Compromise that can be made with the lawyer’s help that avoids some of the consequences of unpaid taxes. The attorney can also help fight against the government from taking away any property in a legal proceeding or through liens. 

Denver taxation attorneys

There are lawyers who dedicate their practice to helping people with various tax issues in Colorado. Semler and Associates is available to consult with anyone who needs additional advice about tax law.

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