You may already be aware that avoiding an IRS settlement for your past due tax returns could lead to serious consequences if unaddressed, including garnishment of wages, a reduced credit rating or claim to your property. But did you know filing for back taxes could put money in your pocket?

If you were due a refund from a previous year’s taxes, you only have three years from the return due date to file, and subsequently claim the return. You could be throwing money away that the government owes you.

Whether you’re facing a tax debt or the IRS owes you, filing your back tax is the financially wise thing to do. Resolving past due tax returns with the IRS will give you the financial freedom to pay your monthly expenses and enable achievable financial goals for your future.

The IRS has a history of collecting on back taxes, and in its recent strategic plan for 2009 – 2013, the government branch reaffirmed its goal to quickly collect past-due taxes.

Your best option is guidance from an experienced tax attorney who has helped many people just like you get their prior year’s taxes filed. You need an attorney who will factor every situation you faced during the year for which you are filing, including whether or not you were searching for a job during that year.

Federal tax laws change yearly, and how much expertise your tax attorney has with these laws will ultimately translate to the best financial agreement you can make with the IRS.

Don’t hesitate to contact an experienced tax lawyer before the IRS contacts you.

Any IRS debt only adds to your struggles in this economy. The government wants to make it easier to pay your taxes, yet others within government are calling for additional reforms.

In June Nina Olson from the National Taxpayer Advocate told Congress that the current Offer in Compromise (OIC) program discourages taxpayers who would legitimately qualify for this method of payment to the IRS.

Taxpayers accepted into the OIC program have dropped since 2001. Reasons vary as to why taxpayers may be reluctant to request this particular type of agreement with the IRS. In Olson’s report, recommendations included everything from examining the current application process to adequate staffing within the department.

Qualifying for the program is based on a reasonable collection potential (RCP), part of which is based on anticipated future income. Yet today’s market is riddled with company layoffs and financial upheaval not seen in decades. So how accurate could your anticipated future income be?

How can you determine if the upcoming changes could help you achieve the best tax settlement with the IRS? Avoid tax representation firms that have been sued for misrepresenting how they could help consumers through Offer in Compromise. Rely on a reputable firm of tax lawyers with excellent customer ratings.

Offer in Compromise isn’t always the best agreement to pay your tax debt to the IRS. An experienced tax attorney will put your financial feasibility first, and they’ll be by your side during payment negotiations with the IRS.