The Internal Revenue Service can be scary. When they are pressing you to collect back taxes, they can be downright terrifying. But what can you do? They have all the options, it seems, and you have none. Well, you actually do have some options when the IRS comes calling for back taxes.
One of the rights you have as a taxpayer is the right to representation. Take advantage of it and hire a tax attorney if you are faced with major IRS problems.
Contacting the IRS directly is not recommended. After all, they do not have your best interests at heart. They are considering the best interests of the federal government and their personal career aspirations. They are not likely to work out the settlement in your favor; they are more inclined to work out the settlement in favor of the federal government.
Researching your own settlement options is better than just folding, but you are not really qualified to negotiate tax liens or attached wages, etc. Unless you just want to make a payment arrangement and pay everything they are levying against you (back taxes, fines, interest, etc.), you should probably hire a professional to negotiate on your behalf.
A good tax attorney is sure to get you a better settlement than you could get yourself. Settling IRS tax claims is something they do every day. When was the last time you settled an Internal Revenue Service tax claim?
There is also the consideration of time. Do you really have the time to take away from all the other things you have to do in your life to adequately research, prepare, and engage in negotiations with a seasoned, trained, professional Internal Revenue Service Agent? The time it saves you by handing over all the necessary work to negotiate your tax settlement with the Internal Revenue Service to a tax attorney might save you enough to pay for his or her fees.
Negotiating your own tax settlement with the Internal Revenue Service would be unduly stressful and overwhelming. How could you dispassionately represent your interests before the IRS when it so deeply involves you? In negotiating with the IRS, you need a calm, rationale, experienced representative who will not take any personal issue with the Internal Revenue Service claims against you. In your present state of circumstances, it will be impossible for you to exercise the necessary calm and poise needed to maintain a professional demeanor.
So, if you owe serious back taxes, and the IRS is beginning to inquire about how and when you intend to pay, do yourself a favor and hire a competent tax attorney as soon as possible.