Meet Tax Attorney Nick Nemeth

When Dallas/Fort Worth-area residents need help solving their IRS problem and want to keep more of the money they earned, many turn to Nick Nemeth.

“People come to me with serious IRS issues and are often scared because they don’t know how to get through the legal process,” said Nemeth, who founded the Law Offices of Nick Nemeth, a small boutique tax law firm, 15 years ago. “Unfortunately, they live in fear because they have no idea what the IRS might do next.”

For most of Nemeth’s clients, problems arise from overdue tax returns. What often happens is taxpayers get returns completed, but then see they owe money to the IRS. So instead of filing the return, they wait until their finances improve.

Of course, the wait for extra money often lasts longer than anticipated. In some instances, taxpayers also hold out hope that the IRS won’t notice the unfiled return(s).

“The reality is the IRS will never stop tracking you down when you own them money,” warned Nemeth, whose advice has been featured on several ABC, CBS, NBC and Fox affiliates nationwide. “My role as a tax attorney is make sure the agency stays away from my clients until we can negotiate a permanent solution for all parties involved.”

Complicating matters is the IRS’s evolving tax codes, which leaves even the most honest taxpayers at risk of getting hit with crippling penalties. Paychecks, bank accounts and other assets also become targets.

These life-changing risks are why Nemeth suggests never trying to solve an IRS problem without help from an experienced tax attorney. He also warns against using one of the national tax relief companies that often advertise on TV because their services rarely result in a permanent solution.

Nemeth turns to five solutions when helping clients solve tax problems.

The first is the Collection Statute Expiration Date. This option is a possibility for people who have owed the IRS money for an extended period of time. The fact is the IRS only has 10 years to collect on overdue taxes. When this time period passes, debt disappears and can’t be collected.

Currently Non-Collectible Status is a similar option in that filers can end up paying nothing. However, you must first prove a financial situation doesn’t allow for payments. At the very least, this solution does allow filers to delay the time the IRS can collect.

Of course, the benefits and disadvantages to these possible “pay-nothing” options require proper consideration before using them as a permanent solution.

An Installment Agreement is an option that uses a payment plan to eliminate tax debt. Not only does this solution allow taxpayers to spread out payments, it also removes all risks of of levies, garnishments or seizures. For taxpayers who can make a larger upfront payment, Nemeth can also negotiate an Offer In Compromise. The big benefit with this option is IRS debt can get resolved a lower rate than what was originally owed.

A final solution Nemeth considers with clients is bankruptcy. The reality is taxpayers can eliminate significant debt with this option, but it first requires careful analysis of a person’s financial situation and planned purchases for the future.

“After using one of these solutions to resolve a tax problem, the focus then turns to making sure my clients don’t ever get into an IRS problem again,” Nemeth added.

After growing up in Canada, Nemeth – who is married and has five children – now considers Texas his home. He attended the University of North Texas and Texas Wesleyan School of Law.