Financial difficulty is not something that anyone ever wants to deal with, but the unfortunate reality is that many people will encounter it to some degree in their lives. Individuals who struggle with tax debt problems may feel as though they are more overwhelmed and in deeper trouble than they would be if they were dealing with different forms of financial difficulty. This can likely be because of the association of the government with taxes and the authority that is granted to the Internal Revenue Service to deal with tax debt problems. For those who need help with IRS issues and suggestions for possible tax debt solutions, there are many tax defense attorneys that can provide helpful services.
In 1787 when the United States Constitution was adopted, it provided the federal government with the authority to lay and collect taxes while requiring that in proportion to population, some types of tax revenues would be given to the states. Today, federal tax rates can vary anywhere from 10 to 39.6 percent of taxable income. Very specific taxes on items existed throughout the country now, with cities such as Chicago having a 9 percent tax on fountain soda drinks while only having a 3 percent tax on soda that comes in a bottle.
Filing taxes is considered to be as convenient as ever now with online services, but that does not suggest the amounts that people owe have become any easier to pay. E filing taxes first became an option in 1989 when it was available in 36 states. Then a year later in 1990, every state was given the option of e filing.
Individuals who have tax debt problems may need the services of a tax defense attorney to prevent an IRS tax levy from happening. In order to obtain the money that is owed, the IRS will sometimes issue something such as an employee wage garnishment that requires an employer to withhold the earnings of a person who has a major tax debt. If an employer does not comply with this or tries to fire an employee to avoid dealing with the matter, they can fined up to 1,000 dollars and imprisoned for a year. To ensure that their tax debt problems do not reach the level of a wage garnishment or to stop one if it has already begun, individuals can turn to tax defense attorneys for solutions.