Tax Resolution Attorney in Reno, Nevada

Individuals living and working in the United States are required to file their taxes annually. However, some taxpayers often fail to make their tax payments when due. According to the Internal Revenue Service (IRS) Data Book, approximately 8.4 million Americans owed over $114 billion in combined past-due taxes, interests, and penalties in 2020. Filing your past-due taxes and resolving tax issues with the IRS is crucial to avoid fines, interests, and penalties.

If you’re trying to resolve tax issues or file your past-due taxes, consulting with an experienced Nevada tax attorney is important for detailed guidance. Scott N. Tisevich has the resources and knowledge to assist individuals in tax-related matters. As your legal counsel, he can evaluate your tax record and enlighten you about your possible legal options to file your back taxes. Scott N. Tisevich can offer you the legal support and advocacy you need to resolve your tax-related issues with the IRS and ultimately achieve tax debt relief.

The Law Office of Scott N. Tisevich proudly serves clients throughout Reno, Nevada, and the surrounding communities of Douglas County, Lyon County, Carson City, Churchill County, and Las Vegas.

Penalties and Interest
for Late or Non-Payment

If you fail to pay your back taxes, possible penalties include:

• The IRS may seize your property and assets.

• The IRS may levy your financial accounts or garnish your wage.

• The IRS may place liens on your property.

• The IRS will charge you a failure-to-pay penalty.

Failure-To-Pay Penalty: This is charged when you fail to pay your taxes by their due date. The penalty is 0.5% of the tax owed after the due date monthly up to 25%. Also, the 0.5% increases to 1% monthly 10 days after the IRS issues a final notice of intent to seize or levy property. However, if you can show a reasonable cause for the failure not to pay your taxes when due, you may not be required to pay the fine.

Tax Compromises and Negotiations

Individuals owing past-due taxes may achieve some relief through any of the following options:

Installment Agreements

Taxpayers earning a decent income can settle their past-due taxes through monthly installments. This will require entering into an installment agreement with the IRS to offset your tax debts.

Offer in Compromise

Through an offer in compromise, tax debtors are able to settle their past-due taxes for less than the full amount owed. It involves proposing a settlement offer to the IRS through which you can either offset your tax debts with lump-sum cash split over five payments or through periodic payments.

Penalty Abatement

Penalty abatement allows you to totally eliminate an imposed tax liability. If there is an error in your tax record or a delay on the part of the tax authorities, you can seek for penalty abatement to partially eliminate your tax liability.

IRS Tax Payment Plans

Depending on your unique circumstances, the tax authorities may offer you an extended period to repay your past-due taxes through either of these installment plans:

• Short-term Payment Plan: You are owing $100,000 or less in combined tax, penalties, and interest. To be paid within 180 days or less.

• Long-term Payment Plan: You owe a maximum of $50,000 in combined tax, penalties, and interest. To be paid within 120 days or less.

Audit Representation

Tax audit representation, or audit defense, is a process whereby a tax or legal professional stands in for you (the taxpayer) during an IRS audit. Your tax audit representative will have the legal authority to handle everything on your behalf while you stay home.

Understanding Offer in Compromise

An offer in compromise is a tax resolution option that allows a tax debtor to settle their back taxes for a reduced amount. It involves negotiating a settlement agreement with the IRS to pay your tax debts for less than the full amount you are owing.

An offer in compromise may be right for you if:

• You owe the IRS more than you can pay.

• You would experience financial adversity if you paid the full amount of past-due taxes.

Payment Options

The available payment options include:

• Lump-Sum Cash: This requires submitting an initial payment, usually 20% of the proposed reduced amount, with your application. You can split the remaining balance over five payments (at most).

• Periodic Payment: This option allows you to settle the proposed reduced amount through monthly installments. You will submit the first settlement amount with your application and pay the remaining balance using monthly payments.

The Process

The process for an offer in compromise application is as follows:

• Propose a reasonable settlement offer to the IRS or tax authorities.

• Complete and submit Form 433-A, Collection Information Statement for Wage.

• Submit an initial amount with your application based on your preferred payment option.