There are many people who are struggling to pay their bills and do not pay their taxes on time. It may be because they have suffered losses in business or have been ignoring paying taxes for any other reason. Failure to pay taxes is considered a serious offense, which has serious consequences. Defaulters may face a tax lien, in which the government seizes their real estate, retirement accounts, brokerage and savings accounts. If the tax lien is filed, the person’s credit rating will suffer and they will not be able to buy or rent a house, rent an apartment, or sign a lease. For these people, debt relief services from specialized companies are the only ray of hope.
Many companies or individuals file for bankruptcy and it is the only option that seems feasible to them. Today, due to the bad economic scenario, bankruptcy has become a common phenomenon. According to federal law, bankruptcy is designed to help people who are deeply in debt. Liquidation and reorganization are the two different types of bankruptcy. Chapter 7 denotes bankruptcy liquidation, while Chapters 9, 11, 12 and 13 are for reorganization. The process is a bit complex and to fully understand it, people should seek professional help from bankruptcy attorneys.
The tax collection process is triggered by the Internal Revenue Service or the IRS, sending three consecutive letters, if the first and second letters are not answered. Later, the IRS authorities contact the defaulter by phone or send their representatives to have a one-on-one conversation with the defaulter. The officer who contacts the defaulter is basically the revenue officer; contact the person’s family, friends, business associates, employers, colleagues and co-workers and find out ways to collect taxes.
There are many companies that help defaulters find better ways to pay taxes. These companies have specialized professionals who already have the experience of working with the IRS. Before offering their suggestions, debt relief officers understand the actual financial situation of the defaulter. By using the guidance and knowledge of these professionals, defaulters can save their property. Bankruptcy attorneys negotiate with IRS agents as a result of which defaulters sometimes get more time for payment or can save their property. Sometimes, if the tax bond is already in place, professional representation can help defaulters to release it.
