Tax Debts Solutions By Veteran Tax Attorney & CPA
Posted Under: Tax Law
Tax Debts Solutions By Veteran Tax Attorney & CPA
Pasadena, CA August 31, 2009 — There are a number of tax debts solutions available to taxpayers. These options provide relief from an IRS tax problem or Franchise Tax Board situation. If you are struggling with burdensome tax debt with no relief in sight, you should consider one or more of these strategies:
1. Communication. The taxpayer or a tax professional representing the taxpayer must be in good communication with IRS otherwise collection actions just get more aggressive including asset seizure, bank account liens and wage garnishments.
2. Amount Due. First and foremost the amount of the tax liability needs to be determined and agreed with the IRS and/or the Franchise Tax Board for California taxes. The IRS depends on the taxpayer for filing tax returns and paying the tax due. As a tax attorney and CPA I can tell you that the IRS does make mistakes so the tax bills you are getting are not necessarily correct. Also the original tax return could be incorrect.
3. Installment Agreement. This is a negotiated payment plan based on the amount of tax owing. Essentially a good faith payment plan over time will generally be accepted. If the tax debt to the IRS is greater than $25,000, then additional documentation will need to be provided to the IRS before they will agree to a payment plan. Once the plan is agreed to, the taxpayer will be required to keep all current tax return filings and payments up-to-date.
4. Offer In Compromise. (OIC) This a negotiated settlement whereby the tax debts are settled for less than the taxpayer owes. Normally this requires extenuating circumstances such a job loss, divorce or death of a family member. Once the settlement is agreed to with the IRS, the tax debt is paid off in a lump sum or short term payment program.
5. Bankruptcy Filing. Your tax debts can be discharged under a bankruptcy petition to the court. This option should be carefully considered as it has severe implications including ruining your credit rating.
6. Not Currently Collectible. This is a program whereby the IRS agrees to suspend collections at this time as the taxpayer is unable to pay even an installment plan. However, if the financial circumstances of the taxpayer change, the IRS can resume normal collection action.
7. Statute Of Limitations. Generally the IRS has 10 years to collect from the date of assessment. If collection is not made in that time, the tax debt could vanish.
Taxpayers looking for effective tax debts solutions should consider engaging an experienced tax debt attorney and/or CPA to solve the tax problem. John Spurgeon is both a CPA and tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates have the proven knowledge and skill to effectively represent taxpayers when dealing with the IRS tax or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.
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