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No one likes filing their taxes, and if you have a complex situation, the filing process can pose even more of a headache. However, if you choose to put off your taxes and get behind on paying them, things can quickly become more complicated. Working with a skilled tax resolution attorney is the best way to ensure your tax situation is stress-free. If you owe money to the IRS and are struggling to make the required payment, here are some options for finding relief.

Applying for an IRS Payment Plan

In some cases, low-income applicants can have application fees reduced or reimbursed. Payment plans offered by the IRS offer a great solution for people struggling to pay their taxes. However, it’s important to note that a payment plan doesn’t get you out of paying interest or penalties. Interest will continue to accrue on your payment until the balance is zero.


If you can’t afford your tax bill or need additional time to pay, one option is to apply for a payment plan. There are two kinds of payment plans you can apply for with the IRS:

Short-Term Payment Plans

These plans require taxpayers to pay back their taxes within 180 days through automatic withdrawals from their checking account, a check, or a money order. To qualify for this plan, the maximum you can owe is $100,000, which includes your tax payment along with any fees and interest. You can apply for short-term payment plans by mail or phone.


Long-Term Payment Plans

These plans require taxpayers to make their payments in 120 days or more. To qualify, the maximum you can owe to the IRS in tax, fees, and interest is $50,000. For taxpayers looking to pay through automatic withdrawals, it is $31 to apply online or $107 to apply by phone. If you are looking to pay through a different method, the application fees are more expensive.

Offers in Compromise

Another way you may be able to find tax relief is through an “offer in compromise.” This lets you settle your taxes with the IRS for an amount that is less than you originally owed. Usually, this is only an option for people who have no way of paying back their debt or are experiencing extreme financial hardship.


Getting the IRS to agree to an offer in compromise is much harder than getting approved for a payment plan. In fact, the IRS accepts less than half of the requests they receive for offers in compromise. When determining your eligibility, the IRS considers your income, assets, and ability to pay.

Changing Your Status to “Currently Not Collectible”

If you can’t afford to pay both your taxes and your living expenses, you can file a request with the IRS to have your tax status changed to “currently not collectible.” You’ll need to make this request in collection, which may involve completing a Collection Information Statement to prove that your financial situation is as bad as you are suggesting. On this form, you’ll need to provide proof of your monthly income and expenses.


It’s important to be aware that getting your status change approved does not make your tax debt disappear. Any status change is temporary, and the IRS will usually review your income annually to see if your financial situation has improved.

Consult a Skilled Tax Resolution Attorney

If you are struggling to pay your taxes, you should contact a skilled tax resolution attorney. A tax lawyer can help you determine the best repayment situation for your situation. At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of your tax situation. We understand the challenges of paying taxes while experiencing financial hardship, and we are here to help you handle negotiations with the IRS.


To schedule a consultation with an experienced tax resolution lawyer, call (877) 223-6605 or fill out our online contact form.


Most people think their tax bill is set in stone at the end of the year. While the money savings options available after December 31 are limited, there is still a lot you can do to simplify your taxes and save money. If you have a complicated tax situation or are afraid of being audited by the IRS, it may be in your best interest to work with a skilled tax resolution attorney. Here are three tax tips to start the new year off right and prepare for your tax return.

Contribute to Your Retirement Accounts

If you haven’t contributed to your retirement account for 2020, you’ll need to do it before April 15, 2021. This is the deadline for contributions to both traditional and Roth IRAs. However, to ensure tax-free compounding in your retirement accounts, you’ll want to make contributions sooner rather than later.


Additionally, making deductible contributions to a traditional retirement account can help lower your 2021 tax bill while allowing your contributions to grow at a higher rate than they would in a taxable account. It’s important to note that if you have a Roth IRA, your contributions will not be tax-deductible because all withdrawals from this account during retirement are tax-free. To fully qualify for the annual IRA retirement deduction, you must meet the following conditions:


● You are not eligible or participating in a retirement plan through your company.

● If you are participating in a retirement plan through your company, you must have an adjusted gross income of $65,000 or less if single or $104,000 if married and filing jointly.

● If you are not eligible for a company plan but your partner is, any contributions you make to a traditional IRA are deductible if you and your partner’s combined gross income is less than $196,000.

Make a Last-Minute Tax Payment

If you didn’t pay enough to the IRS over the year, it might be a good idea to make a last-minute tax payment. This is especially applicable to freelancers and contractors. In compliance with IRS rules, taxpayers are required to pay 100 percent of last year’s tax liability or 90 percent of this year’s tax.


If a taxpayer fails to meet these requirements, they may receive an underpayment penalty fee. It’s important to note that, while it’s imperative to pay the government throughout the year, it’s better to underestimate rather than overestimate your taxes. This is because the tax system essentially gives the government an interest-free loan.

Consider Itemizing Your Tax Deductions

While it may seem tempting to take the standard deduction, sometimes it’s better to itemize. Specifically, if you are self-employed, own property, or live in an area with high taxes, itemizing your deductions could save you a chunk of money. Itemizing can also benefit those whose qualified expenses are greater than the standard deduction, which is $12,400 for singles and $24,800 for couples filing jointly.

Consult a Skilled Tax Resolution Attorney

If you are struggling to file your taxes or are worried about a potential audit from the IRS, you should contact a skilled tax resolution attorney. A tax lawyer can help you understand the deductions you are eligible for and advise you on the best strategies for filing your taxes.


At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of your tax situation. We understand that accurately filing your taxes can be a challenge and we are here to help you navigate the process. Additionally, if you end up being audited by the IRS, Becky will work to mitigate the damage and protect your rights.


To schedule a consultation with an experienced tax resolution lawyer, call (877) 223-6605 or fill out our online contact form.


No one welcomes IRS audits; however, if the IRS notifies you of a pending investigation, it’s important to stay calm. In some cases, your audit may be triggered by a discrepancy in your tax return, and in others, you may have been randomly selected.


While for many, the audit process can be completed without stress, you can ensure ease and success with professional tax accounting guidance and legal representation. Here is some helpful information on how to get ready for an IRS and state audit.

How Will I Be Notified of an Audit?

How you are notified of an audit will depend on the type of audit being conducted, along with the types of errors found in your taxes. In most cases, you will receive a certified letter from the IRS informing you of a pending audit. The letter will detail the type of audit being performed and how the IRS plans to retrieve any of your records that they need.


In more severe cases, an IRS agent will come knocking on your door instead of sending a letter. In most cases, the IRS and state agents prefer to contact a person they’re auditing by mail.

Audits Performed by the State and IRS

When you are being audited, it’s helpful to know the kind of audit being performed. While all audits may differ in severity, they all require the help of a professional. If you are being audited by your state or the IRS, you will want to work with a skilled tax resolution lawyer. There are three kinds of audits conducted by state and IRS officials:

Correspondence Audits

These are the simplest audits, requiring you to simply mail in your records at your local post office. Correspondence audits do not require you to meet face to face with an IRS or state agent. Instead, all communication is conducted through mail or by phone. The written notice you receive from the IRS will outline the documents you will need to send. Once you have submitted all the necessary information, they will inform you of their findings and explain the next steps—if any.

Field Audits

Field audits are the most complicated audits and usually involve a “field visit” from an IRS or state agent who comes to your home or the office of your accountant. These audits tend to be long and complex, as the agent will likely go through all of your tax records for any discrepancies. Usually, you will receive a written letter before an agent shows up at your door, so you have time to prepare. During a field audit, it’s in your best interest to be transparent with the auditor.

Office Audits

Office audits are less complicated than field audits but more complex than correspondence audits. These audits typically involve a combination of written and in-person communication. Usually, you’ll receive a written notice to gather your records and then you’ll make an appointment to meet with an agent in person. Once the agent reviews your records, they will send you a written notice of the next course of action.

Consult a Skilled Tax Resolution Attorney

If you have received a written notice from the IRS or your state of a pending audit, don’t panic. With the help of a skilled tax resolution attorney, you can navigate the complexities of the situation and go through the process hassle-free.


At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of your tax situation. We understand that accurately filing your taxes can be a challenge, and we are here to help you through the process. Additionally, if you end up being audited by the IRS, Becky will work to mitigate the damage and protect your rights.


To schedule a consultation with an experienced tax resolution lawyer, call (877) 223-6605 or fill out our online contact form.

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Becky Sebastian is one of the most professional attorneys that I have ever met.   She is very knowledgeable, but is also very kind and does a great job of communicating with her clients. - Armando Z.

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