Finding yourself in a position where you owe the government tax money can be devastating. Penalties and interest can add up quickly making a small debt turn into a very large burden. Many times you can face the taxing agency yourself and straighten everything out and arrange a repayment plan. Working directly with the tax agency if your debt is under $10,000 will probably work out for you. If your tax burden exceeds this amount you would be wise to enlist the help of a tax specialist.
There are different types of tax help firms that you can utilize for help negotiating with a taxing agency. There are non-law firms, law firms and charity organizations that all offer help with tax problems. Depending on the type of debt that you have and the amount claimed to be owed will depend on the type of firm you hire.
If you have a tax debt that has accumulated many fees and interest charges for nonpayment, but you actually agree with the initial amount owed, you could enlist the help of a non-law firm or a charity organization. Both of these types of firms have the capabilities to negotiate on your behalf when you hire them. They can arrange to reduce fees and establish a repayment plan that will benefit both you and the agency. Both of these types of businesses employ skilled negotiators who will work hard to find a repayment plan that is fair. If you are required to go to court for any reason because of your debt you will not be able to use these types of firms to help you.
If you need to be represented in court or you dispute the original amount of taxes owed you will need to hire an attorney to represent you to the taxing authority. Only lawyers are allowed by law to represent someone in a court proceeding. You have the legal right to represent yourself, of course, but a non lawyer cannot speak on your behalf in court.
If you dispute the initial amount owed and all the fees associated with that incorrect amount you would be served well to hire a tax attorney. This is a specific practice of law that requires a meticulous and well informed attorney. Tax laws continually change and you want to hire an attorney that specializes in this area to receive the best representation. With all the proper documentation on your behalf the attorney will be able to negotiate with the taxing authority to reduce the amount owed, reduce penalties and possibly even interest rates.