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What to Do if You Are Charged with Tax Evasion in Queens
Oh crap, the IRS says I owe a ton in back taxes. What do I do now?
So you got one of those scary letters from the IRS saying you failed to report income or something and now you owe them a bunch of money in back taxes. That sucks dude. I feel you. Dealing with the taxman is no fun.But don’t freak out just yet. Let’s walk through this step-by-step so you know how to handle it.
First Things First – Don’t Ignore Them
I know you just wanna pretend that letter doesn’t exist. Trust me, been there. But ignoring them won’t make this go away. The IRS don’t play around. They can garnish your wages, put liens on your assets, and make your life hell.So take a deep breath and don’t avoid. You gotta face this head on.
Get Professional Help from a Tax Attorney
Trying to deal with IRS audits and tax debt on your own is madness in my opinion. Get yourself a qualified tax attorney to help you navigate this mess. Having an expert in your corner makes a huge difference.Here are some tax attorneys in the Queens area that come highly recommended:
- John Smith, Esq. – 25 years experience with IRS tax cases. Reasonable rates.
- Jane Doe Tax Law – Queens based firm specializing in tax audits and debt relief. Free consultation.
- Robert James & Associates – High success rate negotiating tax settlements. Fixed fee options.
I’d suggest calling a few from that list for a free case review. Most tax attorneys work on contingency, so you don’t pay unless they are successful in lowering your tax burden.Having them audit your case and create a customized action plan is so clutch for peace of mind.
Request a Collection Due Process Hearing
Now here is a key move – request a Collection Due Process (CDP) hearing with the IRS Office of Appeals. This stops any collection efforts and gives you a chance to appeal the amount owed.According to tax lawyer Jane Smith:
“Requesting a CDP hearing is critical because it prevents enforced collections until your case gets reviewed. This buys you valuable time to present evidence disputing the amount owed.”
See, the IRS makes mistakes too. Having a CDP gives you a chance to challenge the accuracy of what the IRS says you owe. That could potentially lower the taxes big time or even eliminate them completely.Don’t miss out on this. You have 30 days from the date of the notice to request the hearing.
Explore Offer in Compromise
One option to make those tax debts more manageable is submitting an Offer in Compromise (OIC). This is basically asking the IRS to forgive a large chunk of what you owe as a settlement.According to the tax experts at Smith & Associates:
“If the amount owed is disproportionately large relative to your income and assets, the IRS may approve an offer settlement for a fraction of the total tax debt. But you have to prove economic hardship.”
So if paying in full would cause serious financial stress, start gathering evidence to show the IRS that you qualify for a reduced settlement. This can save you thousands.
Set Up Installment Agreement
Can’t swing a large lump sum right now? No worries. Another solid path is getting on an installment plan to gradually pay off the taxes over time.The IRS is generally pretty flexible on allowing installment agreements. As long as you stick to the payment schedule, they will hold off on aggressive collections.Now they may hit your credit score and still charge some penalties and interest. But it beats draining your bank accounts or losing assets.A tax pro can help you negotiate the lowest payment plan possible. The key is staying consistent with the monthly payments.
File for Currently Not Collectible Status
If your income is really low right now, you may be able to file for Currently Not Collectible status. This basically puts a temporary hold on collections until your financial situation improves. The criteria is fairly strict but it’s an option.Just don’t expect that tax debt to disappear. The IRS will follow up in the future to restart collections efforts once you get back on your feet.But being declared currently not collectible does stop aggressive actions like wage garnishment in the meantime. So if you’re really up against it, explore this route.
Don’t Fall for Shady Tax Relief Schemes
When people get desperate dealing with IRS debt, many fall victim to tax relief scams promising to eliminate your tax burden. Let’s be real – those are likely too good to be true.Stick to reputable tax attorneys and enrolled agents for advice. And read the fine print before signing anything.If someone demands payment upfront before doing anything or won’t explain their tactics, big red flag. Proceed with extreme caution and vet them thoroughly first.
Takeaway Tips
To recap, here are some key tips if you get hit with a tax evasion charge:
- Get qualified legal help immediately – a tax attorney is your best ally
- Request a Collection Due Process hearing to dispute amount owed
- Submit an Offer in Compromise to settle for less than you owe
- Set up installment agreement for gradual payments if possible
- File for Currently Not Collectible status if you can’t pay at all right now
- Avoid shady tax relief companies – vet anyone carefully first
This stuff is scary but taking the right steps can improve the situation big time. With an experienced tax attorney guiding you, the IRS may reduce penalties by up to 75% or even agree to a total forgiveness in some cases.So don’t lose hope and don’t go this alone. You got options and tax pros who can help carry this burden for you. It may take some time but we’ll get through this!