If you are the sole proprietor of a business, and you have a tax debt, you may wonder if you need a tax debt attorney. In this video, tax attorneys are discussed. According to the video, if the debt is less than $30,000 to $40,000, your CPA may be able to handle it. You can contact a tax debt attorney for an initial consultation before you hire them. An attorney may discover you owe less money than you initially thought.
Tax Attorneys Can Advise You
Tax attorneys are professionals who are knowledgeable about federal and state taxes. Using an attorney when you negotiate with the IRS will assure you that your debt is being handled in the best way. They may not be able to get your debt reduced. However, they may be able to suggest alternatives you are unaware of.
Tax Attorneys Provide Options
A frequent suggestion is an Offer of Compromise, which can be used if you prove that paying the total amount will cause severe financial hardship. This agreement gives you a lower amount or extended repayment period. Another option is a penalty abatement, which can get rid of an added penalty, which the IRS can choose to forgive under exceptional circumstances. There are other options and tax debt attorneys know them. They can help you understand them all.