If you have been threatened with levy and garnishment by the IRS and the Georgia Department of Revenue, you need immediate professional help. There are numerous options you have to work with the tax collectors, however, the worst response to do nothing. Agents for the IRS and Georgia Department of Revenue are like all collection agencies; they just want to collect on a debt. Like all collection agencies the IRS and Georgia Department of Revenue will NEGOTIATE as this is the best way for them to collect at least some of the money owed.
Beware of national businesses touting "PENNIES ON THE DOLLAR". I am an attorney who has practiced in South Metro Atlanta for more than twenty (20) years, and will be responsive to your needs. If you hire an out of state agency, beware. TaxMasters and JK Harris, two national companies, are being investigated for unfair trade practices.
Both the IRS and the Georgia Department of Revenue have programs which are known as "OFFERS IN COMPROMISE". Essentially, these programs consist of an assessment of your assets, your income, and your expenses to determine a reasonable amount you can afford to pay to settle a tax debt.
The IRS and Georgia Department of Revenue will want to discover all of your assets. If these can be liquidated, they will expect you to do so to to pay towards your debt. Next, the IRS will want to know your income. Oftentimes tax debt come about due to a failed business which failed to pay taxes to keep afloat, and now the individual has had to obtain a new job with less income, perhaps only sufficient to pay normal bills for the individual. If you do not have assets to be liquidated and if you do not earn a great deal of money, the IRS and the Georgia Department of Revenue will accept an offer based on your new circumstances.
TAX RELIEF THROUGH BANKRUPTCY
CHAPTER 7 BANKRUPTCY DISCHARGE
The best option often for tax resolution is often to file Chapter 7 Bankruptcy. Under certain circumstances, if a personal income debt is more than three years old, you can discharge this debt in bankruptcy. This will not discharge personal obligation for sales or payroll tax.
CHAPTER 11 BANKRUPTCY
If your business is still profitable, you can reorganize your tax obligation through a Chapter 11 Filing. If your business owes a great deal of payroll or sales tax, a Chapter 11 Bankruptcy can be filed to have these debts paid in a reasonable manner.
If the debt is the result of failing to file or disagreements regarding legitimate business deductions, you have the right to dispute the IRS findings. Disputes often arise due to failing to provide the IRS with appropriate proof of legitimate deductions.
If you have significant assets and income and do not qualify for bankruptcy or an Offer in Compromise, you can work out a payment plan with IRS and Georgia Department of Revenue to avoid levy and garnishment.
The worst reaction to collection activity is to do nothing. We enjoy helping people get out the hole of tax debt.
Please visit my website at tomtierneylaw.com
Please call if you need legal representation to Thomas F. Tierney at (770) 631-1100 or e-mail at firstname.lastname@example.org