Can't pay my income taxes: can anyone recommend a national law firm who specializes in this? (financial, lawyers)

[SunInHair]

I'm looking at doing an offer and compromise for my Federal and State income tax. Has anyone used one of the *national* law firms who specialize in this area? Open to any suggestions.

[janetvj]

I recommend that you instead hire a local attorney who specializes in tax. The national firms promise miracles, but in reality, the IRS and most states have very specific rules about accepting less than the full amount owed. You will get the same deal regardless, depending on your specific circumstances, whether you go at it with a high priced attorney or you try to work it out yourself. But if you want to be represented, go for someone local. Be prepared to provide evidence of your financial circumstances - all assets and liabilities. There is no magical way to get out of your obligations.

I speak from the vantage point of a former tax collector. I was the head of the appeals section for a state goverment agency until I retired. I saw so many people throw their money away on poor legal representation that should have gone toward satisfying their obligations. And when all was said and done, they still owed the tax in addition to owing the lawyers.

[SunInHair]

Originally Posted by janetvj

I recommend that you instead hire a local attorney who specializes in tax. The national firms promise miracles, but in reality, the IRS and most states have very specific rules about accepting less than the full amount owed. You will get the same deal regardless, depending on your specific circumstances, whether you go at it with a high priced attorney or you try to work it out yourself. But if you want to be represented, go for someone local. Be prepared to provide evidence of your financial circumstances - all assets and liabilities. There is no magical way to get out of your obligations.

I speak from the vantage point of a former tax collector. I was the head of the appeals section for a state goverment agency until I retired. I saw so many people throw their money away on poor legal representation that should have gone toward satisfying their obligations. And when all was said and done, they still owed the tax in addition to owing the lawyers.

Thank you for your response. I was going to do the Offer In Compromise myself but my husband insists an attorney can get a better deal. Still, we know of someone who went through this process last year without an attorney and paid 20% of the amount due--which happens to be the percentage the IRS already has withheld from my earnings. Unfortunately, there are no attorneys here. I tried phoning the only one recommended to me who is 3 hours away in Albuquerque but can't get him to return my phone calls. Need to figure out what to do about the State income taxes owed, now, too.