Tax Tips: When You Need A California Tax Debt Attorney
A taxpayer faced with a tax debt problem arising from income tax assessments from the IRS and/or the Franchise Tax Board should apprise themselves with the various remedies available. What is not an option is to do nothing. Taxpayers should consider retaining a tax debt attorney in situations where the IRS has begun aggressive collection action such as a tax lien on assets including bank accounts, investments and property. The IRS will go for the taxpayer assets that they can convert into cash as quickly as possible.
Keep in mind that the IRS is basically a collection agency for the Federal Government and have been granted wide powers by Congress. Taxpayers file their tax returnsboth individual and corporate, and then the IRS collects for federal income taxes and the Franchise Tax Board collects for the California state income taxes.
The worse thing that a taxpayer can do is nothing. The clock is ticking with the IRS who will only wait so long before filing tax liens and grabbing taxpayer assets.
As a first action, the tax liability owing needs to be determined. The tax assessment from the IRS is not necessarily correct. Unfortunately, the IRS does make mistakes or the taxpayer may have made an error filing a tax return. A tax debt attorney, working with a CPA as needed, can determine if there is an error and write to the IRS requesting that the inaccuracy be corrected.
Taxpayers have rights and there are a number of options available that a tax debt attorney can address to assist the taxpayer deal with any remaining tax debt issues:
1. Installment payment plan this involves negotiating with the IRS to come up with a payment plan that works for the taxpayers financial situation and is agreeable to the IRS.
2. Tax reduction and installment plan this is also a negotiation with the objective of reducing the tax liability with the balance being paid over a period of time.
3. Offer In Comprise with this option, the objective is to get a substantial reduction in the tax balance owing. This is only available for special circumstances such as divorce, death in the family, etc.
4. Bankruptcy. This alternative is a formal legal procedure that can be complex. Retaining an attorney is very much recommended. As part of the bankruptcy proceedings the tax debts get discharged along with other liabilities. This relief is typically only available for tax filings that are at least three years old.
A seasoned tax debt attorney would be able to advise on the best course of action to reduce or eliminate tax liabilities.
John Spurgeon is a tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge and experience to effectively solve tax problems with the IRS or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.
About John Spurgeon & Associates
John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.
Keep in mind that the IRS is basically a collection agency for the Federal Government and have been granted wide powers by Congress. Taxpayers file their tax returnsboth individual and corporate, and then the IRS collects for federal income taxes and the Franchise Tax Board collects for the California state income taxes.
The worse thing that a taxpayer can do is nothing. The clock is ticking with the IRS who will only wait so long before filing tax liens and grabbing taxpayer assets.
As a first action, the tax liability owing needs to be determined. The tax assessment from the IRS is not necessarily correct. Unfortunately, the IRS does make mistakes or the taxpayer may have made an error filing a tax return. A tax debt attorney, working with a CPA as needed, can determine if there is an error and write to the IRS requesting that the inaccuracy be corrected.
Taxpayers have rights and there are a number of options available that a tax debt attorney can address to assist the taxpayer deal with any remaining tax debt issues:
1. Installment payment plan this involves negotiating with the IRS to come up with a payment plan that works for the taxpayers financial situation and is agreeable to the IRS.
2. Tax reduction and installment plan this is also a negotiation with the objective of reducing the tax liability with the balance being paid over a period of time.
3. Offer In Comprise with this option, the objective is to get a substantial reduction in the tax balance owing. This is only available for special circumstances such as divorce, death in the family, etc.
4. Bankruptcy. This alternative is a formal legal procedure that can be complex. Retaining an attorney is very much recommended. As part of the bankruptcy proceedings the tax debts get discharged along with other liabilities. This relief is typically only available for tax filings that are at least three years old.
A seasoned tax debt attorney would be able to advise on the best course of action to reduce or eliminate tax liabilities.
John Spurgeon is a tax attorney in Pasadena, California servicing clients in the San Gabriel Valley and the greater Los Angeles area. John Spurgeon & Associates, who are both tax attorneys and CPAs, have the proven knowledge and experience to effectively solve tax problems with the IRS or the Franchise Tax Board. Please call 626-440-9518 for a complimentary initial consultation.
About John Spurgeon & Associates
John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.
Source...