Tax Law- Understanding the Nature of Tax Relief and Settlement

Many taxpayers may have come across an advertisement that offers “no tax debt settlement.” What exactly does this mean? Does this mean that you simply pay no taxes on your settlement and the government will not ask you to pay taxes at all? Are these advertisements a part of a marketing scheme? And how much do local tax attorneys charge for their services? These are all questions that taxpayers have been asking since the inception of the Internal Revenue Code, said IRS tax settlement lawyer in Missouri.

The original intent of the Internal Revenue Code was to prevent individuals from avoiding taxes by using various strategies and techniques. However, with the advent of technology and the internet, tax law has become more complex and vague. Taxpayers are finding it increasingly difficult to successfully negotiate tax matters with the IRS. In response, the IRS has gone on a campaign against tax liars and professionals who are attempting to capitalize on the IRS by offering a tax settlement or tax relief. Recently, in an effort to implement stricter IRS regulation, the IRS has issued revised regulations that prohibit tax lawyers from charging fees unless they win a majority of their cases.

 

Because the new regulations make hiring a tax attorney near impossible, most taxpayers are now opting to hire a local tax lawyer. While a lawyer does not have the same expertise as a tax attorney in a high court, a local lawyer has the advantage of being able to build a personal and professional relationship with their client. The local attorney also has the benefit of providing the added security that comes from being familiar with the local laws as well as the IRS.

 

Before the tax code was restructured in 2021, taxpayers could seek relief from the IRS by appealing directly to the IRS. Taxpayers enjoyed many years of free rein when it came to appealing an assessment or a tax collection. Unfortunately, the 2021 amendment to the Tax Code eliminated the ability of a taxpayer to directly negotiate for tax relief. The result was an immediate increase in debt and interest because tax collectors now had the power to seize any unclaimed funds, regardless of whether the individual situation was legitimate.

 

One of the options open to an individual is to hire a tax relief attorney to represent them in their local tax court. Unfortunately, many local tax attorneys are still only practicing in part of the country due to a lack of experience representing clients from out-of-state or under-residence states. The tax code is notoriously complex and the majority of tax attorneys fail to have even basic knowledge of the code. Not only does this result in poor advice being provided, but there is also often no way for a taxpayer to challenge the initial assessment in the local tax court. This leaves taxpayers literally penniless when the IRS demands repayment.

 

Another option available to a taxpayer is enrolling in a state-approved tax education program, said . Enrolled agents are certified by the state to provide taxpayer advice on all federal, state, and local taxes. These agents are not permitted to give legal advice or propose tax resolutions. They are not permitted to give an opinion on whether the IRS is within the jurisdiction of the state, or on any legal position concerning taxes. Finally, tax enrolled agents cannot participate in any proceedings that would require them to take a stand on an issue of tax evasion or avoidance. A tax relief attorney can assist a taxpayer in understanding their tax situation best, but is not a substitute for a trained tax lawyer.