IRS Debt

Houston IRS Debt Lawyer

A 5-Star Attorney to Guide You Out of IRS Debt

If you forgot to file your taxes or otherwise owe money to the IRS, Vasquez Law Group can help you resolve your disputes quickly and efficiently. While intentional tax fraud is a crime, making an accidental mistake on a tax filing is not. Some mistakes, however, are costly, such as if you underreport how much you actually owe in taxes. There are several ways you can resolve your IRS debt, such as by developing a payment plan to avoid collection or filing for bankruptcy. Vasquez Law Group can take a more detailed look at your case to determine the best way of settling your tax debt. Our attorney has a 5-star rating for her financial legal work and is more than ready to help you resolve your IRS debt disputes.

Contact Vasquez Law Group today for a free consultation to get started.

Possible Penalties for Tax Debt

Individuals who failed to pay their taxes or otherwise underpaid will face two types of penalties, depending on the situation:

  • When a person files a tax return because they did not prepay enough taxes through withholding or estimated tax payments – the penalty will be determined by the federal treasury rate each quarter during the tax year
  • When a person doesn’t pay their taxes by the due date of their tax return – the penalty starts at 0.5% of the unpaid taxes, increasing each month to up to 25% of the taxes owed

In the latter case, the IRS can take the person’s tax refund each year to help pay the debt, and they may also issue claims on the person’s property and assets, or even take money directly from their paycheck. As a result, the individual may end up facing quickly accumulating debt and not enough assets to pay it off.

Illuminating Your Path Towards a Fresh Start and the Financial Freedom You Deserve! Contact the Vasquez Law Group today to get started!

Four Ways to Settle Tax Debt

Five common ways to settle tax debt are:

  • paying back the debt in full;
  • entering an installment agreement;
  • agreeing to an offer in compromise;
  • negotiating a temporary delay of collection; and
  • filing for bankruptcy.

An installment agreement allows the debtor to make monthly payments until their debt has been satisfied. Typically, these plans cost a fee to set up and also require paying interest and possible late penalties. 

An offer in compromise (OIC) is an agreement between the debtor and the IRS that allows them to settle their debt for less than originally owed. An OIC may be granted under the following criteria:

  • paying the tax debt would create an economic hardship for the debtor;
  • the debtor has unusual expenses due to catastrophic issues (e.g., a seriously ill family member, living in a disaster area, etc.);
  • the debtor’s income has dropped substantially due to unforeseen circumstances;
  • the debtor has little or no assets, or their assets have little or no equity.

Note that before the IRS can consider an OIC, the debtor must have filed all their required tax returns. They are also not eligible for an OIC if they are in an open bankruptcy proceeding.

Statute of Limitations for IRS Debt Collection

There is a statute of limitations, or deadline, for when the IRS can collect unpaid income tax debt. The Collection Statute Expiration Date (CSED) is 10 years from the date the penalty was assessed; after the 10-year deadline, the IRS can no longer collect that debt. Be aware that the CSED can be extended in certain situations, such as if the debtor enters an installment agreement, submits an OIC, has their property seized, or enters a non-collectability period.

IRS debt is a tricky matter. There are a number of options for resolving your tax debt, but certain options may be more beneficial for you than others. If you are currently dealing with mounting IRS debt, reach out to our experienced lawyer at Vasquez Law Group to discuss your next steps. We can help you determine whether filing for bankruptcy is your most favorable option. Attorney Regina M. Vasquez is a 5-star-rated lawyer who knows how to handle debt disputes effectively.

Schedule a free consultation with Vasquez Law Group today to get started on your IRS debt issues. Let’s get you out of your financial mess and back on your feet ASAP.

“Bankruptcy is never easy, but if you have to go through it, I guarantee you that you want Vasquez Law Group in your corner!”

- N. Walker
Regina M. Vasquez Photo
Regina Vasquez Founding Attorney
Regina Vasquez Founding Attorney

I have been practicing exclusively in bankruptcy law since November 2011. I have designed my firm to be dedicated to assisting people in their time of financial need. I am also a counselor for my clients to guide them through a very stressful time.

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