FAQs

The law requires taxpayers to file their income tax return every year. Delinquent taxes are those that a taxpayer has not paid and/or not filed by the due date. If you don’t pay your delinquent taxes, the balance will keep growing with penalties & interest. The IRS may impose various civil and criminal penalties if taxpayers fail to file returns. Our team of attorneys can assist you to fix all types of IRS tax debt issues. Not only can we help getting your returns filed, but we can then help you resolve the debt owed on those returns.

Taxpayers are protected by the Taxpayer Bill of Rights. We can evaluate your financial circumstances and help you understand which route towards a possible solution best suits your needs if you can’t pay all of your taxes. The IRS may consider you for an ‘Offer in Compromise,’ an ‘Installment Payment Agreement,’ ‘Uncollectible Status,’ or even a ‘Tax Bankruptcy.’

Taxpayers with back taxes owed might be eligible for tax relief. If you are seeking tax relief, there are certain procedures that must be followed. There is short-term tax relief for such events as wage garnishments, bank levies or tax liens. More permanent tax relief may also be available such as tax settlements, installment agreements, and penalty removal. Having an experienced tax attorney guide you through these processes can be invaluable.

Though you may be able to access your tax records by requesting them from the IRS, requesting those records on your own can often trigger red flags. Our team of attorneys along with our support staff can conduct an IRS tax investigation by requesting your tax records in such a way as to minimize the likelihood of raising any red flags and determine exactly where you stand with the IRS, risks you are currently facing and how best to resolve those issues.

Yes. If you fail to file and pay your taxes on time, the IRS charges you interest on any unpaid balance and the interest rate varies and may be adjusted quarterly. You may also be subject to penalties, including the failure-to-file and failure-to-pay penalties. Each of these penalties are calculated a bit differently. Although both are capped at a maximum of 25% of your unpaid tax. The Failure-to-File penalty is 5% of your unpaid tax for each month the return is late. The Failure-to-pay penalty is 0.5% of the unpaid tax for each month the tax remains unpaid. The IRS will assess penalties for partial months.

A Federal Tax Lien is the way the government secures itself against your equity in assets for taxes owed. A Tax Lien may prevent or delay the sale of an asset and will likely cause any equity or funds you are entitled to from the sale to be paid towards your IRS debt. This can create substantial turmoil when trying to sell a home when a federal tax lien has been filed. At the Law Offices of Nick Nemeth, PLLC, we help our clients comprehend the complex process involved with lien discharges and lien subordinations. Our team of attorneys has extensive experience with respect to identifying taxpayers who qualify for the ‘IRS Fresh Start Program,’ and provide them the most strategic solution to their tax lien issues. This IRS tax lien assistance offers lien withdrawal or prevention for those who qualify.

If your business has unpaid employment taxes, the IRS may collect them from your business assets or receivables. In the case that your business fails to pay payroll taxes, the IRS may also holds the owner of the company personally responsible by assessing the ‘Trust Fund Recovery Penalty’ against the individual. To address payroll tax problems that companies face, ‘Offers in Compromise’ and ‘Installment Agreements’ are among the possible solutions that can effectively be used. The attorneys at The Law Offices of Nick Nemeth carry out a thorough analysis and will explain all options available to solve your current payroll tax problems.

The Offer in Compromise (OIC) Program, commonly referred to as the ‘IRS Fresh Start Program,’ allows the taxpayer to settle a tax debt for an amount that is less than the amount owed. In 2012, the IRS expanded its offer-in-compromise program under its Fresh Start Initiative, thereby allowing more taxpayers to qualify. If you meet the criteria and your OIC is accepted by the IRS, you are generally able to resolve your debt for a fraction of what was owed.

There are several different types of Bankruptcy, 2 of which are the most commonly used. The first one is Chapter 7 wherein a Bankruptcy Court may allow you to discharge your unsecured debt. You may also be able to discharge Federal Income Tax you owe in a Chapter 7 Bankruptcy if certain criteria are met. The other commonly used type of Bankruptcy is a Chapter 13, or repayment type of Bankruptcy, in which the IRS debt is repaid through the bankruptcy repayment plan.

No, you don’t need to be an Attorney to represent yourself before the IRS. To represent another taxpayer, you must be an Attorney, Certified Public Accountant (CPA) or an Enrolled Agent with the IRS.