Tax Debt Resolution Attorney in Knoxville, TN

Owing back taxes can be a stressful and overwhelming experience. With mounting penalties, interest, and the threat of enforcement by the Internal Revenue Service (IRS) or Tennessee Department of Revenue (TDOR), it can seem impossible to regain control. The fear of having your bank account emptied or wages garnished without warning is real, but there are rights and options available to you. You don’t have to face tax debt alone.
At Easter & DeVore, we help individuals and businesses in Knoxville, TN find relief through effective tax resolution strategies. We aim to help you resolve tax issues efficiently and strategically, moving you from anxiety to control, protecting your financial future.
Understanding Tax Debt
Tax debt can arise from unpaid federal, state, or local taxes. If left unpaid, these taxes can lead to serious consequences, such as wage garnishment, bank levies, and asset seizure. The longer the tax debt goes unpaid, the more interest and penalties accumulate, making it more difficult to pay off in the future. In addition to the financial consequences, a federal tax lien can also damage your credit score and hinder your ability to purchase or refinance property. For businesses, unpaid tax debts can damage relationships with vendors and disrupt cash flow.
At Easter & DeVore, we assist clients in understanding the full scope of their tax obligations. From the breakdown of the main tax liability and accumulated penalties and interest to specific collection statute expiration dates (CSEDs) that limit the time the IRS has to collect, we evaluate all available options for resolution based on your unique financial situation. We negotiate with the tax authorities to find sustainable solutions for you or your business that are manageable.
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IRS and TDOR Collection Actions
When taxes go unpaid, the IRS or TDOR may initiate collection actions to recover the owed amounts. These actions can include:
- Wage Garnishment: A continuous levy taking a significant portion of your paycheck directly from your employer.
- Bank Account Levies: A one-time seizure of the funds in your checking or savings account, which can include funds needed for rent, mortgages, and essentials.
- Tax Liens on Property: A public claim against your real estate or personal property that secures the government’s interest and damages your credit.
- Seizure of Assets: The actual taking of property, including vehicles, business equipment, or real estate, to be sold at auction.
When you receive any type of notice, especially a Final Notice of Intent to Levy or a Notice of Federal Tax Lien, it is crucial to take immediate legal action. We act quickly to protect our clients from these aggressive tax collection tactics. Our team of lawyers communicates directly with the Internal Revenue Service (IRS) Revenue Officer or Tax Debt Office (TDOR) collector assigned to your case. They work to immediately halt or release any active collection activity by filing the necessary appeals or submitting a qualifying resolution proposal. They also explore all available programs that can provide lasting relief for your situation.
Tax Debt Relief Options
The IRS and TDOR offer various programs that allow taxpayers to resolve outstanding tax debt under more favorable terms. Common resolution options include:
Installment Agreements
An installment agreement allows you to pay off your tax debt in monthly payments over a period of time. Depending on your financial circumstances, the IRS may be able to offer streamlined payment plans or more complex arrangements tailored to your income and expenses. We go beyond the standard payment plan and negotiate for the lowest possible monthly payment, taking into account your allowable living expenses (as determined by the IRS Collection Financial Standards).
For larger debts, we may pursue a partial pay installment agreement, where the debt is not fully paid off before the collection deadline. For businesses, we can structure agreements that help protect critical cash flow.
Offer in Compromise
An offer in compromise (OIC) is a way to settle your tax debt for an amount less than the full amount owed, if paying the full amount would cause financial hardship. The decision to approve an OIC is based on a careful evaluation of your income, assets, expenses, and future earning potential. The IRS uses a complex formula to determine if you are eligible for an OIC and what the appropriate offer amount should be.
The OIC process can be complex and challenging, as the IRS aims to collect as much as possible. We help our clients determine their true eligibility for an OIC, calculate the most favorable offer amount, and create a well-documented application that can withstand intense scrutiny. Before applying for an OIC, we advise our clients to ensure they are in compliance with all filing requirements in order to maximize their chances of approval.
Currently Not Collectible Status
If you are experiencing financial hardship and are unable to pay your tax debt, you may be eligible for current non-collection (CNC) status. This status temporarily halts all collection activities. We can help you gather the necessary financial documentation to prove your hardship. It’s important to note that penalties and interest will continue to accrue while in CNC status, which is subject to an annual review. Although this provides some breathing room, it is still a temporary solution and may not be the best long-term option.
Penalty Abatement
Penalties and interest can add up to a significant amount of your tax debt. In some cases, you may be eligible for penalty relief due to reasonable causes, such as serious illness, natural disaster, death of a family member or relying on incorrect professional advice. We can provide detailed arguments based on reasonable cause supported by evidence to help reduce or eliminate penalties. Additionally, we can use the IRS’s First-Time Abatement program, which is available to taxpayers with clean compliance history, to remove penalties for failure to file or pay taxes.
Why Choosing the Right Advocate in Knoxville Matters
Tax debt negotiation is a complex legal process that requires expert guidance. It involves dealing with experienced government agents who may not be motivated to offer the best possible outcome for you. Our team of professionals is here to act as your assertive advocates, using our in-depth knowledge of Internal Revenue Service procedures, local tax laws, and negotiation strategies to help you achieve results that you may not be able to achieve on your own. We take care of all communication with the authorities, shielding you from high-pressure tactics and ensuring that each submission is carefully crafted to maximize your chances of success.
Contact Easter & DeVore
If you are struggling with tax debt and need help, Easter & DeVore can assist you. We provide expert legal advice for clients in Knoxville, Tennessee, who are facing IRS or TDOR collection proceedings. Don’t let fear and uncertainty prevent you from taking action. The sooner you contact us, the more options you will have, and the more we can protect your assets.
Contact us today to schedule a confidential consultation and discuss your options for dealing with your tax debt with confidence. Together, we will analyze your situation, create a clear plan, and begin working to resolve your debts and restore your financial stability.
Common Tax Debt Resolution FAQ
A tax lien is a public claim against your property to secure the government’s interest in your debt. A tax levy is the actual seizure of assets (e.g., wages, bank funds) to satisfy the debt. We work to prevent levies and help remove liens through strategic resolution.
Yes, in most cases. Immediate legal action can often halt a wage garnishment or bank levy. We communicate directly with the IRS/TDOR to stop the collection and shift the process into a formal resolution like an installment agreement or Offer in Compromise.
An Offer in Compromise (OIC) settles your debt for less than you owe. The IRS/TDOR will only accept if they doubt they can collect the full amount. Eligibility depends on your income, assets, expenses, and future earning potential. We conduct a thorough analysis to determine if an OIC is your best strategic option.
Often, yes. Penalties can be reduced or abated (removed) for “reasonable cause” (e.g., serious illness, reliance on bad professional advice, natural disaster). We identify grounds for abatement and formally request relief to reduce your overall liability.
This status temporarily suspends IRS/TDOR collection due to financial hardship. It is not debt forgiveness; the debt remains and interest accrues. It is a temporary solution that provides breathing room while your financial situation improves, after which we can pursue a permanent resolution.
They will, but the terms may not be in your best interest. An attorney negotiates from a position of knowledge, often securing lower monthly payments, longer terms, or better conditions than an individual might obtain alone. We ensure the plan is sustainable and protects your assets.
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