Understanding IRS Debt Relief
  • July 22, 2021
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A tax debt can have far-reaching consequences in a variety of ways. That is why it is important to do all you can to pay outstanding taxes as soon as possible. One of the ways tax debt can negatively impact taxpayers is by interfering with unemployment tax refunds. According to the IRS, Unemployment Tax Refunds are subject to normal offset rules, which means they can be seized on account of unpaid federal tax, state income tax, state unemployment compensation debts, child support, spousal support or student loans. Tax attorneys can help taxpayers seek IRS debt relief on favorable terms that don’t bring wholesale disruption to their finances.

The Biden Waiver

President Joseph. R. Biden’s March America Rescue Plan has, among its provisions, the waiver of federal income taxes on up to $10,200 in 2020 unemployment insurance benefits for individuals who earn less than $150,000 a year. Due to the fact that most people had filed before March 11, the day on which the bill was signed into law, a lot of them became entitled to refunds of the amounts by which they had overpaid.

Related Blog: How to Approach the IRS Office Of Appeals


While the IRS has promised automatic refunds, meaning taxpayers do not have to file again, those with back taxes have little reason to smile. This is because, as mentioned earlier, the federal government and most states regard unemployment benefits, including any extra money distributed by way of federal aid programs, to be taxable income. This leaves unemployment tax refunds exposed to garnishments. The fact that taxes are not automatically deducted from unemployment aid has seen the potential for refund shock rising exponentially for the 2020 tax year in light of the America Rescue Plan.

Related Blog: Debunking 5 Myths Related to IRS Tax Audits

Last Word

Taxpayers must take action to pay back taxes before the IRS initiates harsh recovery procedures. You can get IRS debt relief through facilities such as IRS debt forgiveness, IRS penalty abatement, offer in compromise, and IRS tax installment agreement. Dallas tax attorneys at the Law Offices of Nick Nemeth can help you get a favorable resolution when looking to get IRS debt help. To get answers to all your questions about IRS debt relief or to discuss your situation, call (972) 426-2553 or email jamie@myirsteam.com.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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