Pasadena Tax Attorney
Taxpayers in California that have received notices from the IRS should call tax lawyer Pasadena to start settlement right away. Tax debt that is not handled can result in IRS collection efforts. These efforts do not stop unless the full balance is paid or an agreement is reached between the taxpayer and the IRS. The IRS has the ability to put liens and levies on taxpayer assets to ensure that the debt will be repaid. Depending on the status of the debt, tax experts such as Pasadena tax lawyers can advise on the next step to debt resolution.
There are several repayment programs that a taxpayer can enter to work towards good standing with the IRS. Currently-Non-Collectible (CNC) status and Offers-In-Compromise are available to individuals who are unable to pay off the balance in full due to some form of financial hardship. If a Pasadena tax attorney determines that the taxpayer’s monthly expenses are greater than their income, CNC status can be awarded. This is a temporary situation and can only be maintained as long as the taxpayer remains compliant and their income stays the same. Offers-In-Compromise are short term repayment agreements in which the taxpayer pays as much as they can and the IRS agrees to lower the debt owed and release the liability after the settlement amount has been paid. Full financial disclosure and providing all pertinent information to tax professionals is crucial to qualifying for either of these programs.
For taxpayers who can pay off their full debt if given a monthly payment amount, Pasadena tax attorneys recommend Installment Agreements (IA’s). These are repayment programs that typically last for 60-months and have a variety of options for the specific repayment amounts. For example, individuals who have large and short-term payments to make on items such as cars or student loans can enter into a Stair-Step IA pay smaller amounts for a 12 month period while they pay their other obligation and then have an increased payment for the remaining 48 months.
If no efforts are made to resolve tax debt, or if any of the aforementioned agreements are broken through non-compliance, a lien can be placed by the IRS. Liens put “holds” on taxpayers’ assets to ensure the availability of future funds to repay the IRS. Liens damage credit ratings and stay on a taxpayer’s record for 7 years. If a lien has been issued, taxpayers need to contact tax professionals such as tax lawyer of Pasadena to start working towards a solution. If no action is taken at this point, the government can start seizing property from taxpayers by issuing a levy. These actions will continue until the debt has been settled either through repayment or by having enough assets seized. These assets can include anything from bank accounts to houses. If a levy has been issued, tax attorney Pasadena can advise individuals on the steps needed to settle quickly and cease the seizure of their assets.
Taxpayers can seek out tax experts like a Pasadena tax lawyer for assistance with other IRS problems as well. Penalty abatement, proper tax filing or other tax concerns can be addressed and advised upon to help you find a solution. Regardless of the tax problem, it is important to act quickly. Call a tax attorney in Pasadena today for free consultation and start working towards debt relief.