Tax Resolution and Relief
Few laws are as complex as the US tax code. Let our California tax lawyers work with you on your individual or business tax preparation and tax planning. It is through proper tax planning that we can help you receive proper deductions and credits that you may be unaware of. Let us assist with your California state and federal tax preparation and planning.
Most Taxpayers are under the assumption that they will not face an audit by the IRS or their State Revenue Agency. In addition, taxpayers are unaware or believe that even if they do face an audit that tax penalties do not apply to them but to high net worth individuals and businesses. Unfortunately, these assumptions are incorrect. It is true that high net worth individuals do get audited possibly more but so are individuals that income levels are closer to the state or national average. An audit can have devastating effects on an individual’s finances regardless of the individual income.
The IRS may take several years before they are able to detect a mistake, a disallowed deduction, or oversight by a taxpayer. Furthermore, your tax liability may be continuing to grow as you have been engaged in the same or similar pattern of behavior over the subsequent years. Once the IRS has detected an issue and engages in a tax enforcement action against the taxpayer, there could be significant penalties and accumulated interest. Therefore, a taxpayer could be burdened with a much larger tax liability that could cause significant hardship and financial ruin.
The IRS and state will not forget your tax obligations. It is best to have our tax attorneys face the situation head-on for you. Call us now for information on becoming a client: (800) 982-3880.
What is an Offer in Compromise?
If you are facing a large tax debt that is far more than you can possibly pay, an IRS Offer in Compromise program might be able to provide you with tax relief. An Offer in Compromise may provide you with tax relief by offering the IRS far less than the full amount you may owe. Furthermore, not all taxpayers may want to take this route as some may not qualify and once you do qualify there are various conditions that you must abide by.
How Do I Determine I Need Tax Relief and When Is it Suitable to File?
If you have received a notice of unpaid taxes from the IRS. A taxpayer request through the IRS’s Collections Due Processes procedure. A notice that you may receive with the following title or subject line::
- Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
- IRC 6320 – Notice of Federal Tax Lien Filing and Your Right to a Hearing
- Notice of Jeopardy Levy and Right of Appeal
A taxpayer may request a Collections Due Process hearing by filing IRS Form 12153 (Request for a Collection Due Process or Equivalent Hearing). For a Taxpayer to request such relief must file the request 30 days after receiving the final intent to levy notice from the IRS. This may be the only opportunity for a taxpayer to take control of their matter as an IRS Revenue Officer may not take collection actions while your case is on appeal.
Once a hearing has been set your tax attorney will provide information as to why collection action is unwarranted. Moreover, your tax attorney may provide alternative plans to the IRS for collecting the taxes owed. Such alternatives may include, innocent spouse relief, installment agreement, lien subordination, or an Offer in Compromise.
Discharge of Taxes through Bankruptcy
The opportunity to find relief from using bankruptcy to get rid of one tax liability is a fact-based analysis. Oftentimes many tax professionals are not well versed in discharging taxes through bankruptcy. Bankruptcy can provide much relief by not only getting rid of one’s tax debt but also providing reprieve from state and federal tax collection attempts during the bankruptcy process.
At the K&S Law Group our attorneys are well versed with the bankruptcy process and can provide the necessary guidance that taxpayers require to find relief.
What is Collection Due Process and how can it help you find relief?
Taxpayers are offered many different avenues to find relief from tax debt. The Collection Appeals Program is one such alternative to taxpayers. It is important to note that a taxpayer who chooses this form of relief is that they agree that the appeals program is binding. What this means is that a taxpayer waives their right to further appeal or the relief procedures through Federal court. A taxpayer that may pursue this relief program may only do so if they have received the following notices from the IRS:
- Notice of Levy
- Notice of Seizure
- Notice of Federal Tax Lien
- Denial of Installment Agreement
- Termination of Installment Agreement
A taxpayer to enter into a Collection Appeals Program must first complete IRS Form 9423 (Collections Appeal Request). Furthermore, if you have not been contacted by an IRS Revenue Officer than your procedure to pursue this form of relief may be different.
The Collections Appeal Program is often used to appeal cancellation or denial of an installment agreement. It may also be used for rejected Offers in Compromise and penalty abatement requests.