Unresolved tax debt management snowballs into the IRD breathing down your neck and many sleepless nights for those who find themselves in this unfortunate predicament.

If you are under investigation or an audit and need a tax lawyer, get in touch with the team at Tax Debt Sorted. We have achieved success for clients in Auckland, Wellington, Christchurch and throughout the country for a number of years.

Our tax debt lawyers have worked at the IRD

Our team of qualified Tax Lawyers have a combined 13 years of experience of working at the IRD. That means they have the ‘inside track’ on understanding how the system works from the inside out and speak the ‘IRD language’ fluently. With this extensive knowledge they quickly evaluate and seek resolution on your behalf.

Tax lawyers are skilled negotiators who act quickly

Our Tax Lawyers will listen to your story, evaluate the situation and start immediately negotiating for the best possible outcome. With our unique knowledge of tax laws, IRD policy and procedure, we can negotiate installment plans and a partial and full tax debt write off. This will stop the daily accruing late penalties, and interest that can seriously mount to astronomical figures.

They know how the investigations work at the IRD and what they need to achieve

With such vast experience working with the IRD, A Tax Lawyer can focus on the anticipated actions the IRD will make to recover the tax debt owed. Fundamentally the IRD wants to recover monies owed, however they will take and will go to lengths to recover what they can.

The IRD, from a business perspective wants to keep the economy ticking along and is willing to work with the distressed business. If they can help salvage a business that has just got into a little bit of trouble and work with the management of the tax debt, then it is a ‘win-win’ situation for all those involved.

When you hire a Tax Debt Lawyer, you are seeking the advice from a specialist that will sift through legal code. This saves you time that could be better spent on your business, which certainly outweighs the cost of a Tax Debt Lawyer. Whether you are in Auckland, Wellington or Christchurch or anywhere else in NZ and need to hire a Tax Lawyer or need to seek tax debt management advice, Tax Debt Sorted is here to listen and help.

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While most of us can get through life without needing a solid understanding of tax law, some people get tripped up. Whether through bad advice, mistakes or unexpected circumstances, people find themselves in tax arrears. The best course of action in this case is to seek out the services of an experienced tax specialist or tax lawyer.

What Exactly is a Tax Lawyer?

Tax lawyers are lawyers specialising through study and trade in the intricacies of the NZ tax system. Tax lawyers could work for the IRD, or they could help businesses and individuals avoid or get out of tax debt. They are knowledgeable in tax law, tax jargon and tax investigations. They know what the IRD’s goals are and how to manage a tax debt negotiation effectively. They can help you with everything from general tax advice to tax disputes and even criminal tax matters.

When Should I Get Help from a Tax Lawyer?

Many people never need the services of a tax lawyer in New Zealand. However, if you are in business and want general advice on avoiding tax issues, a tax lawyer is a great person to speak to. If you find yourself in debt to the IRD, then you are definitely at the point of requiring a tax lawyer to work on your behalf.

Trying to manage tax arrears by yourself is akin to a business owner forgoing the plumber to fix major office flooding alone. It’s best to call in the professionals, the experts in the field who will get the job done properly, efficiently and quickly.

Why You Should Call Tax Debt Sorted NZ’s Lawyers

If you find yourself in the unfortunate position of needing a tax lawyer, you want the best. The lawyers at Tax Debt Sorted NZ have worked at the IRD so we understand how they operate, which gives us an advantage when it comes to negotiating tax debt on your behalf.

We also take on a unique approach because we care. Our first step is to really understand your story with compassion and without judgement, before putting on our tax lawyer hat and fighting to get you the very best outcome.

Wherever you are in NZ, whether in the bigger centres like Auckland, Christchurch or Wellington, or a small town, our tax lawyers are here to help.

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What is a Debt Negotiation Period?

Like any legal negotiations, a debt negotiation period is where both parties involved communicate openly about the situation to find an amicable resolution. When your tax lawyer sets this period up with the IRD, immediately all accruing late fees come to a halt; while we are negotiating the terms, the amount you owe will not continue to grow.

During this debt negotiation, we advocate for you, working with the IRD to determine a tax relief option that will make your debt more manageable. IRD tax debt negotiation keeps everyone happy. The end point is often agreement on both sides to a realistic repayment plan.

Sometimes you will get a tax write off, which means all or a portion of your debt will be forgiven. At the end of the day, the IRD wants you earning money and paying taxes regularly. If monthly instalments or IRD debt write offs will make this happen, they are open to it.

Factors Affecting Negotiations

The outcome of the negotiation depends on many factors, including the amount of tax arrears, how long you have been indebted, the circumstances of the debt, your current financial situation and so on. We use all of this information to determine what you can afford to repay and make a case for you to the IRD.

Get Tax Debt Sorted on your Side

The tax specialists at Tax Debt Sorted NZ have experience with the IRD which means we know how they operate. We understand the jargon, the policies and the mindset, which lets us negotiate your debt quickly and efficiently.

Our tax debt negotiators and tax lawyers are not your average tax specialist – we really listen to and evaluate your story in order to bring in the best possible case to the negotiation process. We are on your side and don’t judge you or make you feel guilty. We use our expertise to get you back on your feet financially.

If you are struggling with tax debt in Auckland, Christchurch or Wellington or elsewhere in NZ, give us a call.

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New Zealand tax system

The New Zealand tax system is full of jargon — IRD, GST, PAYE, FBT provisional tax and terminal tax, to name just a few. Tax debt arrears will happen when you get behind on any of your tax bills. The IRD will quickly start charging interest and late payment penalties on overdue taxes. The interest and penalties on overdue taxes are very high and are designed to ensure that you cannot invest money elsewhere and receive a better return. There are some taxes that are ‘special’, like PAYE. Not paying this to the IRD can be a criminal offence, so it is important that businesses stay on top of their tax obligations.

Tax debt Interest and penalties

Interest and penalties automatically apply to unpaid taxes. The penalties change, depending on the tax type, starting at 1% each month your tax payment is late. The current interest rate is 9.21% p.a. which accrues on a daily basis and is compounding (interest accrues on unpaid interest). Combine these and it’s easy to see how tax debt can spiral out of control so quickly. When you engage us, we are able to stop the IRD applying penalties straight away.

Tax relief options

The IRD’s job is to collect as much tax as possible for the Government and what better way to do that than to help New Zealand businesses keep generating profits? We use our unique knowledge of the tax laws and IRD policy to work with the IRD and New Zealand business owners to manage their tax debts. Most of the time this means we can generate a WIN:WIN outcome. The tax laws and IRD policy provide a variety of options to help you – ranging from allowing you to pay your tax bill in installments, to a partial or full write-off. The options available to you depend on your situation, and we can help you achieve the best outcome.

IRD powers

The IRD must ‘maximise recovery’, and they have a number of ‘powers’ at their disposal to recover tax debt. These powers include deducting money from your bank accounts or your pay, stopping you from leaving the country, freezing your assets, liquidating your business or bankrupting you.

The IRD are less likely to use forcible means of recovery if we start negotiating with them: give us a call today and we will deal with the IRD on your behalf.

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Surprisingly Common 

Despite the severity of being in tax arrears, it is a surprisingly common scenario. In our vast experience, we have found that the great majority of people owing money to the IRD are not dodging tax, rather they have gotten to this point either by mistake, unexpected circumstances or poor accounting advice.

The following scenarios outline just how easy it is to accidentally find oneself in tax arrears:

Scenario One: Family Business Confusion 

Mr. and Mrs. Smith thought they were tracking everything in their family business properly but ended up with a tax bill far higher than they had expected, forcing them into tax arrears.  

Scenario Two: Cash Flow Problems 

Joanne had an unexpected decrease in cash flow. She suddenly found herself with a tax bill that she couldn’t pay. 

Scenario Three: Tax Audit 

Operating on his accountant’s advice, Robert thought he was doing everything right, but a tax audit proved otherwise. He ended up owing a whole heap of backdated taxes to the IRD – which he couldn’t afford. 

The Challenge with Tax Arrears 

The real challenge with tax arrears isn’t that you owe the IRD money, it’s the way the situation rapidly escalates. If it was as simple as a missed payment that you could afford, it wouldn’t be a huge problem – but what often happens is that between late penalties, interest charges and a lack of cash flow, your tax arrears situation quickly gets out of control.

Without expert advice and support from qualified tax lawyers and accountants, business owners and individuals can find themselves facing legal action, bankruptcy and a mountain of fees. 

Tax Debt Sorted NZ Can Help 

At the end of the day, the IRD doesn’t want your business to go under, they simply want to collect the unpaid tax money that you owe the government. To you, the situation is personal and it can feel like the IRD is breathing down your back; the team at Tax Debt Sorted NZ are not only experienced with the IRD but we are also able to remain calm and objective.

It is from this position that we can halt any tax debt interest accruing while negotiating either a repayment plan or even a tax write-off on your behalf. We will get the best possible solution to get you out of tax arrears and back on your feet.

The post The Surprisingly Common Situation of Tax Arrears appeared first on Tax Debt Sorted.

Tax Debt Sorted is one of New Zealand’s most knowledgeable and efficient tax debt management specialists. We want to help you understand tax write-offs and how to use them properly.

What is a Tax Write-Off?

If we are going to explain how a tax debt write-off can help you, we should probably start from the beginning. After all, a lot of trouble with IRD debt starts with a confusion about what all the tax-related jargon really means.

Running a business is a delicate balance of income and expenses: tax write-offs are expenses that reduce your overall taxable income. You may have received $100,000 over the year, but if your expenses total $40,000, you should only be taxed on the remaining $60,000. Essentially, to determine how much tax debt you can write-off, you subtract expenses from total revenue.

What’s so Difficult About That?

Sounds simple, right? In theory it is, but in practice many people run into trouble. In fact, understanding tax-write offs and which expenses are legitimate is one of the most common areas where businesses go awry and end up needing to negotiate IRD debt write-offs.

The IRD sets certain rules when it comes to expenses and tax write-offs, so those unfamiliar with the rules could find themselves claiming more expenses than they should, and an audit will uncover this. Then you are in the tricky situation where you owe more taxes to the IRD than you are able to pay, putting you in tax arrears.

Legitimate Business Expenses

Here is a list of some common business expenses that the IRD recognises for tax write-offs:

• Software packages
• Car mileage and vehicle use
• Travel expenses
• Home business costs

How Can Tax Debt Sorted NZ Help?

If you are getting back on your feet after tax arrears, Tax Debt Sorted can take a look at your books and see if you should be claiming more expenses and writing off more tax, thus saving lots of money.

On the other hand, if you are in arrears or owe more to the IRD than you can pay, we can help as well. Our tax debt negotiators works with the IRD to offer you the best possible relief option. Because we understand tax laws and IRD policy, we can often reach an agreement that works both for you and the IRD. Sometimes this means payment instalments, but we can also sometimes negotiate either a partial or full tax write-off, giving you a fresh start.

The post Tax Debt Sorted Can Help You Maximise Tax Write-Offs appeared first on Tax Debt Sorted.

Here’s our quick overview of the ins and outs of what happens when you can’t pay tax debt – and how to get out from under the piling snow.

What are tax arrears?

Simply put, tax arrears are when you owe unpaid taxes to the government. In New Zealand the tax system can be confusing for business owners unfamiliar with the jargon of the tax world. Tax debt problems arise when any of your tax payments are overdue.

The IRD has the power to recover unpaid tax debt from your bank account or pay, prevent you from leaving the country, freeze assets and liquidate your business. Tax arrears is serious business.

How does it happen?

In our experience as tax debt consultants, we understand that few people underpay taxes on purpose – most often there is a surprising situation like an injury, poor cash flow, bad advice or a shock quiet season that makes it difficult to make a tax payment.

The Snowball Effect

When you have underpaid your taxes, the IRD starts charging interest and late penalties. These penalties are high, so even a small amount of tax debt can turn in a major problem.

It’s worth noting that even though the origin of tax arrears is often innocent enough, people have a habit of running from their problems rather than face them head on. Tax debt problems get placed in the ‘too hard’ pile, which is when the snowball really gets out of control.

How not to get buried

As soon as you find you can’t pay tax debt, get in touch with Tax Debt Sorted. Waiting does no good; rather, getting professional help from tax debt specialists with experience at the IRD as soon as the tax debt problem arises is absolutely your best bet.

At Tax Debt Sorted we are not here to judge – we know that things happen and have seen it all before. Helping people get on top of their tax debt mountains is precisely why we started this business.

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