Tax Debt Attorney: Your First Line of Defense Against IRS Collections

When you receive a letter from the IRS, it’s tempting to ignore it, especially if you already know you owe back taxes. But inaction can lead to escalating consequences: wage garnishments, bank levies, liens, and substitute returns that inflate what you owe. A tax debt attorney can help you stop collections before they begin and work toward a realistic resolution that protects your financial future.

Why Tax Debt Grows So Fast

If you owe taxes and haven’t filed, the IRS combines two potent tools: the failure-to-file penalty (5% per month, up to 25%) and the failure-to-pay penalty (0.5% per month, also up to 25%). Add daily compounding interest, and the debt multiplies rapidly.What’s worse, the IRS may file a Substitute for Return (SFR) on your behalf. This return only includes income reported to the IRS, not deductions, exemptions, or credits you’re entitled to. The result? An inflated bill and the start of enforcement.

What a Tax Debt Attorney Can Do

A tax debt attorney serves as both your negotiator and your legal shield. Their job is to:


1. Stop Collections Before They Start
With a Power of Attorney on file, your lawyer can communicate with the IRS on your behalf, pausing enforcement while a resolution is explored. This can prevent garnishments or levies before they hit your accounts.
2. File Back Taxes and Correct SFRs
An attorney will help you prepare and file missing returns, which immediately reduces failure-to-file penalties. By replacing an SFR with an accurate return, you may also drastically reduce your tax bill.

Learn more about unfilled tax returns.


3. Pursue Payment Relief Options
Options include:

  • Installment Agreements: Monthly payments based on your ability to pay
  • Offer in Compromise (OIC): In rare cases, settle for less than you owe
  • Currently Not Collectible (CNC): Temporarily stop collection if you’re financially unable to pay

4. Negotiate Penalty Abatements
If you can demonstrate reasonable cause, such as a medical crisis, natural disaster, or other life disruption, your attorney may petition the IRS to reduce or eliminate certain penalties.
5. Represent You in Audits, Appeals, and Tax Court
If your case involves complex disputes, formal appeals, or court proceedings, legal representation is essential. A tax debt attorney in California understands how the IRS operates and how to build a compelling defense.

Signs You Should Contact a Tax Debt Attorney Now

  • You’ve received an IRS notice threatening collection action
  • Your wages are being garnished or your bank account was frozen
  • The IRS filed an SFR and you believe the balance is wrong
  • You owe taxes but haven’t filed in years
  • You’re overwhelmed and unsure how to start fixing it

Long-Term Value of Legal Representation

Beyond stopping immediate enforcement, a tax debt attorney helps you:

  • Reclaim control of your finances
  • Stay compliant to prevent future issues
  • Navigate multi-year liabilities
  • Reduce risk of criminal investigation in cases of long-term non-filing

Avoiding Common Mistakes

Many taxpayers fall for promises that sound too good to be true. Be wary of aggressive marketing that promises to “wipe away tax debt” or “guarantee settlements.” A reputable tax debt attorney will assess your full situation before recommending a solution and never rush you into unverified programs.

Final Word

If you’re overwhelmed by IRS notices, mounting penalties, or unfiled returns, you don’t have to face it alone.
Kugelman Law specializes in tax help and IRS defense, helping clients take control of their situation before enforcement actions escalate.

Contact us today to schedule a confidential consultation with an experienced tax debt attorney in the San Francisco Bay Area.