The Bankruptcy Reform Act of 1994

There was once a time where both the IRS and state taxing agencies where legally shielded from what was otherwise considered unlawful collection practices both before and after a bankruptcy. Taxing entities essentially had carte blanche when it came to collecting taxes from individual taxpayers and businesses. Moreover they were allowed not to recognize bankruptcy or to behave as though it wasn't an issue.

Thank You President Clinton

In October of 1994, the 22nd to be exact, then President Bill Clinton signed into law The Bankruptcy Reform Act. In an effort to be as pragmatic as possible this law negated "sovereign immunity" and forced the IRS and state level tax agencies to rethink and give pause before pursuing collections against persons going through or concluding a bankruptcy. Under this law taxpayers gained the right to sue tax agencies for damages, attorney fees, and in some cases all costs whenever they are pressured or forced into collections.

Protection From Tax Agencies

Although the The Bankruptcy Reform Act of 1994 has saved many taxpayers the hassle and burden of having to deal with tax agencies and the IRS during or after a bankruptcy these agencies are big and powerful. Big and powerful agencies, like people, often become and operate arrogantly. The IRS and state tax agencies will sometimes still try and intimidate bankrupted persons into paying a tax debt; those that do will be hoping that a taxpayers ignorance and fear coerce them into paying when they don't have to. Tax crisis's require a tax attorney and one that specializes in tax crisis's. These types of tax attorney's will ensure that the rights of taxpayers are upheld, recognized, and that the IRS and other tax agencies adhere to the mandates of The Bankruptcy Reform Act of 1994.

Beware The Tax Crisis Scam

Image Source: http://www.taxcrisisinstitute.com/

If you are having a tax crisis you're obviously going to want and need the help of a competent and experienced tax attorney.  Even with the best tax attorney at your side dealing with the IRS can be an intimidating, stressful, and confusing experience. Unfortunately there are some unscrupulous tax professionals that prey upon frightened, flummoxed, and desperate individuals. Such persons run a variety of scams that are designed to take money from persons needing help and don't actually solve their tax problems.

Types Of Tax Crisis Scams

The vast majority of tax attorney scams involve either selling services that don't actually solve tax issues or flat out lies about what a taxpayer is and isn't qualified for. Victims of these scams often fall into deeper trouble with the IRS and lose substantial amounts of income in the process. Other scams might involve individuals whom are either unqualified to operate as a tax attorney or aren't tax attorney's at all. Regardless of what's involved in the actual scam the swindle is fairly simple. Tax/IRS relief solutions are offered to desperate people whom in turn pay scam artists for something that doesn't solve their problems and may make them worse.

The Difference Between Acting Quickly and Rushing

When an individual rushes they tend to make mistakes, forget things, react poorly, be susceptible to suggestion, and generally cause more harm than they do good. Persons whom act quickly but don't rush often pull through crisis's with little trouble. Taxpayers in need of a tax attorney will undoubtedly want to act quickly but rushing to hire anyone without doing proper research can be detrimental to their situation and their bank account. It behooves taxpayers to utilize the internet in their search for a tax attorney and to spend some time on their phones interviewing attorney's of interest. Being informed before hiring a tax crisis professional can ensure that an individual gets the help they need.