If you owe the IRS large amounts of money, it may be hard to visualize how you can ever be free again. There are a lot of options for managing your tax debt, but they may only become apparent with professional help. If you don’t handle the situation appropriately, the IRS can:
- Garnish your wages or bank account
- Add expensive penalties
- Punish your spouse for your debt
A certified public accountant (CPA) has the knowledge and experience to work with tax authorities with you and for you.
For help with tax debt relief in Bloomfield Hills, call MI Tax CPA at 248-600-5506.
Can Your Tax Debt Be Forgiven?
The IRS will forgive your tax debt under certain circumstances. A professional accountant can help you find out whether you qualify for tax debt discharge. Although many of these options won’t wholly relieve you, some of the best ways to manage your tax debt are:
- Request uncollectible status. This status means the IRS will freeze the account and stop collection. This way, you’ll be able to get back on your feet until you can make payments. This method can stop wage levies and property seizures.
- Offer in Compromise. A CPA can help you choose between the IRS’ Offer in Compromise These programs allow you to settle your debt for an amount you can afford.
- File for bankruptcy. You can use bankruptcy to discharge income taxes. If this option is available to you, a CPA can guide you through the process.
Do I Need A Tax Debt Lawyer Or An Accountant?
Tax attorneys have extensive knowledge about tax laws, and they can represent you in legal negotiations. However, most attorneys do not prepare tax returns or provide you with relevant financial advice. These attorneys usually outsource financial matters to an accountant.
For this reason, you should use a CPA if you need help navigating taxes. They can:
- Prepare and submit annual tax returns
- Make sure you comply with tax codes
- Fix incorrect tax returns
- Help you file overdue returns
Accountants specialize in assisting individuals and business owners with their finances. They may even be able to represent you with the IRS if needed.
Above all else, a tax debt accountant in Bloomfield Hills can help you get your finances in order and keep them that way. It would help if you met with one every time you need to file taxes, manage your money, or get information about financial planning.
Filing Bankruptcy
You can file both Chapter 7 and Chapter 13 bankruptcy to help get rid of tax debt. Chapter 13 allows you to pay back your taxes to the best of your ability. After you meet the IRS rules, the remaining debt can be discharged.
Under Chapter 7, the IRS may discharge some types of taxes entirely. Although bankruptcy may be your last option, your CPA will help you determine if it’s the right move for you.
Get Help
If you are behind on your taxes, you probably have questions about whether you have to pay your back taxes and who you should call for help.
If you need advice or help with tax debt relief, call MI Tax CPA today at 248-600-5506. We will give you a free consultation so that you can understand your options.