Currently Non Collectible

If you are suffering from financial hardship, you have the right to stop the IRS from issuing levy on your paycheck or bank account. If you are suffering from financial hardship and have no disposable income left at the end of each month, the IRS will consent to placing your account on a Non-Collectible status and stop all collection activity. Your Non-Collectible status remains active for as long as you are experiencing financial hardship.

OFFER IN COMPROMISE – IRS TAX RELIEF FOR

SAN FRANCISCO BAY AREA TAXPAYERS

You can settle your IRS Tax Debt for a fraction of what you owe.  The IRS Offer in Compromise (OIC) program is a Federal Tax Relief Program for those taxpayers who cannot afford to pay-off their IRS tax debt because of financial hardship, or have a legal claim and don’t think they owe the tax.

 

1.  OFFER IN COMPROMISE – FINANCIAL HARDSHIP

The financial hardship tax relief program is called Doubt as to Collectibility and is the most common way to settle your taxes.  Under this tax relief program, you can settle your IRS tax debt for a fraction of what you owe.  IRS uses income/expense and asset/equity ratios to determine the settlement amount, based on standards set for taxpayers’ average cost of living, according to their family size and location.  If such living expenses are equal to your total income, and your net equity in your assets is less than your IRS debt, you can settle your tax debt with the IRS for less than what you owe.

 

Example:  Husband and Wife live in California with two children and owe $35,000 to the IRS.  They cannot make monthly payments towards their debt.  Penalties and Interest are accruing on the debt and taxpayers continue to receive notices including Notice of Intent to levy.  Taxpayers do not have equity in real property, and their monthly income is just enough to pay for their living expenses; hence no disposable income is available to pay the IRS.  IRS acknowledges the doubt as to collectibility of the tax and accepts an offer for less than $3,000.  Taxpayers no longer owe the tax; the tax liens on their credit report are satisfied and reported to the credit bureaus.

 

2.  OFFER IN COMPROMISE – LEGAL CLAIM

The other Tax Relief program is called Doubt as to Liability and can be used to offset a tax liability if the tax is not legally owed by the taxpayer.  The IRS may have erroneously assessed a tax because of mistake or lack of evidence.  Upon proof IRS will terminate the tax liability.

 

Example:  Taxpayer inherits assets from a deceased parent's estate and the financial institution which managed the asset reports taxpayer as the recipient of the asset.  Taxpayer does not file an estate tax return and IRS assesses a $25,000 tax ion letters demanding payment.  A Doubt as to Liability claim is filed because the inherited asset is exempt under estate tax law and not taxable as income.  IRS acknowledges the legal claim and accepts taxpayer’s offer.  Accordingly the tax liability is terminated and all liens associated with the debt are satisfied and reported to the credit bureaus.

 

 

 

 

 

3.  EXCEPTIONAL CIRCUMSTANCES

Exceptional circumstances can persuade the IRS to accept an OIC because the collection of the tax is unfair and inequitable.  This is the least common approach for tax relief.

Example:  Taxpayer is in his retirement age and owes the IRS $30,000.  Taxpayer’s retirement assets are much more than the debt but because of taxpayer’s medical condition, he needs his $30,000 to pay for his medical expenses.  Since the collection of the tax would harm taxpayer’s health and general welfare, the IRS accepts taxpayer’s offer and settles the account.

 

 

The OIC program is the best Tax Relief program available today with the IRS.  An experienced Tax Attorney who has successfully settled hundreds of OIC cases with the IRS can consult with you and advise you on whether you are a good candidate for the offer in compromise program.  If you are qualified, it is the best deal you can get with the IRS.  Get started today by calling 800-220-1651 or simply fill out the online form.

 

 

PARTIAL PAYMENT INSTALLMENT AGREEMENT

Partial Payment Installment Agreement (or PPIA) is an alternative to tax settlement under the Offer in Compromise (OIC) Program with the IRS.  If you do not qualify for the OIC program, or if your OIC was rejected by the IRS, a Tax Attorney can negotiate an affordable payment arrangement under PPIA where you only pay the IRS based on what you can afford instead of a Traditional Installment Agreement proposed by the IRS.  PPIA is for those taxpayers who cannot settle their debt because their income is too high, but still cannot afford minimum monthly payments under an Installment Agreement.

 

For Example:  Taxpayer owes $25,000 to the IRS and cannot settle his debt with the OIC program because his income is too high.  After deducting all his necessary living expenses from his gross income, taxpayer is left with only $150 in disposable income.  Under a Traditional Installment Agreement the IRS would require taxpayer to pay $500 per month to payoff the debt in less than 6 years.  However under PPIA the IRS will accept the $150 payment plan.

 

CURRENTLY NON COLLECTIBLE

If you are suffering from financial hardship, you have the right to stop the IRS from issuing levy on your paycheck or bank account. If you are suffering from financial hardship and have no disposable income left at the end of each month, the IRS will consent to placing your account on a Non- Collectible status and stop all collection activity. Your Non-Collectible status remains active for as long as you are experiencing financial hardship.

 

WAGE GARNISHMENT

Once the tax becomes due the IRS can legally garnish your paycheck and take more than half of your gross monthly income.  This can be quite stressful as the IRS continues the garnishment until the tax is paid in full including penalties and interest.  A Los Angeles Tax Attorney can help release your wage garnishment and devise a plan to either settle your debt with the IRS’

Offer in Compromise program, or negotiate an affordable payment plan.

 

BANK LEVY

The IRS and the State will issue several notices before they start placing a levy on your bank account.  Once the IRS or the State issue a levy on your bank account, the money in your account stays frozen until you either remove the levy within 21 days or the Bank must send it to the IRS or the State.  Under the collection rules, you have the right to keep all personal funds to pay for your living expenses and a Los Angeles Tax Attorney can negotiate with the IRS or the State to release your bank levy, and place your account on a non collectible status to prevent future levies on your bank account and sources of income.

 

PAYROLL TAXES

The IRS is very aggressive when it comes to employment taxes and often assigns a Revenue Officer to the case to quickly collect the tax debt.  If you have a payroll tax liability from a current or prior business, or haven’t filed your 940/941 business tax returns, the IRS will continue pursuing you until the debt is paid in full, including garnishing your business accounts and filing liens against your assets.  A Tax Attorney can negotiate an affordable payment plan and assure continuity of your business operation.

If you have closed your business and owe business taxes, even if your business was a corporation, the IRS can still assess taxes against you personally.  An experienced Tax Attorney can help solve your business tax debt by filing an Offer in Compromise and settle the debt for less than what is owed.

 

UNFILED TAX RETURNS

If you have not filed your taxes, the IRS and the State will file those taxes on your behalf without giving you proper deductions, resulting in a much higher tax assessment.  The first step in resolving your Tax Problems is to file your tax returns.  Premier Tax Attorney, PC can prepare your tax returns to make sure you get proper deductions, and devise a plan to solve the Tax Problem by either settling the tax debt with the Offer in Compromise program or negotiate an affordable payment plan.

 

TAX LIEN AND LIEN SUBORDINATION

The IRS can issue a tax lien on your property which will also be reflected on your credit report.  You can remove the lien from your property and fix your credit by negotiating a payment plan and reducing the tax debt to less than $5,000, or settling your tax debt with the Offer in Compromise program.  However if you have enough equity in your property to pay for the tax debt you can request the IRS to subordinate the tax lien and allow you to borrow money from your property to

pay-off the tax debt.  This loan allows you to finance your tax debt with an affordable monthly payment plan, and deduct the interest on the loan from your income.

 

PENALTY ABATEMENT

The IRS generally rejects most penalty abatement requests, however if there were certain conditions beyond your control which barred you from paying your taxes, the IRS may remove interest and penalties on your tax debt and allow you to only payoff the principle amount.

For example:  Taxpayer was suffering from a medical condition and could not pay his taxes during his treatment.  Several years have gone by and the interest and penalties are now more than $7,000 for a debt of $24,000.  The IRS removes the $7,000, and his debt is reduced to $17,000.  This debt can then be negotiated into an installment agreement for less than $500 per month.

 

INNOCENT SPOUSE RELIEF

If you have filed a joint tax return with your current or ex-spouse, any amount of tax owed by one spouse is considered a joint liability. The IRS will continue collecting unpaid taxes from both spouses, until the tax is paid in full. However a spouse can get tax relief so long as he or she has a reasonable cause and considered innocent under IRS’ guidelines.  Meet with a Tax Attorney to find out if you are a good candidate for Innocent Spouse Relief.

 

CALIFORNIA SALES TAX

California State Board of Equalization (SBE) is responsible for collecting sales tax and conducting audits of your retail business.  An experienced Tax Attorney can represent you before the SBE in case of an audit, or negotiate a payment plan that you can afford without causing a financial burden to your business operation.  Start your Tax Resolution Program today by calling 800-220-1651

or simply fill out the online form.

Call Us Today

for a Free Consultation

(888) 982-9332

Free Consultation

  • id
  • date
    calendar
Copyright © 2017 Los Angeles Tax Relief Attorney - Premier Tax Attorney, PC. All Rights Reserved.