Alternatives Regarding Late Payment of Tax
According to the US law, tax evasion is an offense committed by an individual or an organization when they do not pay the due tax. This is a serious offense and punishable by federal law. This affects the entire financial system of the country. Therefore, the law frowns upon any such case and investigates the matter thoroughly. There are different reasons why a person fails to file tax returns. However, regardless of your reason, if you commit this offense, intentionally or unintentionally, you will be subject to criminal investigation.
Failing to pay tax will make the Internal Revenue Service (IRS) send you a bill or a notice. You have 10 days to pay the tax from the date of receiving this. In case, you do not take any action, the IRS will contact you and will try to arrange for a payment plan. You have more than one option – you can go for an installment agreement, arrange a delay in collection, make a compromising offer or file for bankruptcy.
The installment agreement allows you to make the payment on monthly basis, if you cannot pay the entire amount at a time. You have the option of paying by check or cash. However, the IRS will not agree to this plan, in case you owe them a large amount of money. In case, your financial condition does not allow you to even make a small amount of monthly payment, IRS may agree to delay the collection, until you become financially capable of making the payment. However, this way the payable amount will increase as you will have to pay an additional amount of interest also.
You may try to make a deal with the IRS and negotiate the amount payable. This way you may be able to reduce the penalty. But this will be possible only when there is some doubt regarding liability, collectivity or some other special cases. The last resort when everything else fails is filing for bankruptcy.
If you are involved in any tax related legal issue, you should not try to handle the situation yourself. The best way is to hire an experienced Miami Tax Lawyer. Even if you think that you are capable of fighting your legal case, you should remember that the IRS would expert lawyers to prosecute. You may lack the required legal knowledge to withstand the cross examination in the courtroom and in the end this may cause you severe harm.
Before making a decision, make sure to do some research and check the success record of the lawyers. Do not hire after only one meeting. Remember, a lot depends on the outcome of the legal case and you need to choose carefully.
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