Tax Relief and ResolutionMost taxpayers believe that they handle their taxes appropriately and that they are unlikely to face an audit. Furthermore, most taxpayers also believe that they are unlikely to face significant tax penalties because enforcement actions are more likely to affect someone who earns significantly more money. Unfortunately, these assumptions are not always sound. While it is true that individuals with significant incomes are audited at a higher rate than individuals with incomes closer to the state or national average, an audit with devastating financial effects can happen to any taxpayer.
It may take several years before the IRS detects your mistake, oversight, or overly aggressive deductions. In the meantime, you may have compounded your liability by engaging in the same or similar behaviors for multiple tax years. When the IRS detects and engages in a tax enforcement action against the taxpayer, significant penalties and interests may have already accumulated. As such, the unpaid tax due and owing may become impossible for the taxpayer to satisfy or it may represent a significant hardship.
The tax relief professionals of the Tax Law Offices of David W. Klasing are experienced Los Angeles tax attorneys and CPAs. They are dedicated to mitigating the consequences faced by taxpayers who have accidentally strayed from compliance with the U.S. Tax Code. To schedule a private, reduced-rate tax relief consultation call 800-681-1295 or contact us online today.
Offer in CompromiseIf you have tax debt that is far more than you could possibly pay, the IRS Offer in Compromise program (OIC) might be a tax relief option. An Offer in Compromise resolves a taxpayer’s liabilities with the IRS for less than the full amount owed. An OIC might not be the best solution for you, as not everyone qualifies and there are various conditions that must be met before and after your offer is accepted. I know the parameters of the Offer in Compromise program and can educate you about your options.
How Do I Know I Need Tax Relief and When Is it Appropriate to File?After receiving notice of the unpaid tax obligation that is due and owing from the IRS a taxpayer may request a hearing and potentially utilize the Collections Due Process (CDP) procedures. A notice that triggers this right is likely to have a title or subject similar to the following:
• 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 Collections Due Process hearing can be requested by filing IRS Form 12153 – Request for a Collection Due Process or Equivalent Hearing. If a taxpayer wishes to engage in this relief option, the request for a hearing must be filed within 30 days or receipt of the final intent to levy notice. This is often the only opportunity to take effective control over your issue as the Revenue Officer assigned to the case is prohibited from taking collection actions in many cases while the appeal is pending.
At the hearing, your tax attorney will present information as to why the collection action is erroneous or not warranted. Furthermore, your tax relief representative should present an alternative plan to the IRS regarding the collection action. Your representative may suggest alternatives including lien subordination, offer in compromise, innocent spouse relief, or an installment agreement.
Questions and Answers About Tax Relief and Tax Resolution
- Attorney-Client Conflicts
- Can Divorcing Spouses Allocate Estimated Tax Payments?
- What happens when the collection statute expires?
- International Estate and Gift Planning for Non-Citizens
- Frivolous Collection Due Process Hearing Requests
- California Employment Taxes Basics
- Spouses tax liability at life and death
- What Should I Do About a Divorcing Spouse’s Threatened Criminal Tax Disclosure?
- Is a Full Disclosure of Assets Required During a Divorce Proceeding?
- What are some events that can suspend or extend the collection statute allowing the IRS more time to collect on an outstanding tax debt?
- Does A Divorce Create a Conflict of Interest for a Family CPA?
- A Citizenship Renunciation FAQ
- Can I Seek a Tax-Motivated Divorce or Annulment?
- Should High Net Worth Couples Plan for Divorce Taxes?
- How long can the IRS collect on a past due debt?
- Divorce and Criminal Tax Exposure
- What Is Asset Dissipation?
- When Can a Divorce Result in Both a Husband and Wife Facing Exposure for the Potential Investigation and Conviction of Tax Crimes?
- How much time does the CA Franchise Tax Board have to collect on an outstanding tax debt?
- How are Alimony, Spousal Support, Palimony, or Child Support Payments Taxed?
- Differences between a CDP Form 12153 and Form 9423
- Tax Issues Surrounding Divorce
- 2016 Changes to IRS Collections
- What happens if an employer continues to incur new payroll tax liabilities?
- When should I file a Collection Appeal Protest (CAP)?
- Is Tax Fraud Likely to Be Disclosed During Divorce Proceedings?
- IRS Collection Notices
- What Happens to My Retirement Accounts in a Divorce?
- How Can a Divorcing Spouse (and the IRS) Identify my Undisclosed Assets / Income?
- Divorce Transfer of Property and Tax Issues
Relief Through BankruptcyWhether or not a taxpayer can discharge tax debt through bankruptcy is often answered with uncertainty. Even to many tax professionals, tax motivated bankruptcy is often misunderstood. The truth is, not only can bankruptcy help get rid of many tax debts, but it can also stop collection attempts by the IRS or state tax agencies while you are in the bankruptcy process.
Before and during the bankruptcy, there are generally more questions than answers. But at the Law Offices of David W. Klasing, my legal team and I will guide you towards tax relief every step of the way. With a combined 20 years of experience as a Certified Public Accountant and tax attorney, I know the tax motivated bankruptcy process inside and out and can offer a helping hand to those who need it most.
Need help or have a Tax Relief Question? Contact us!
Tax Relief through Collections Due ProcessThe Collection Appeals Program (CAP) is a tax relief alternative that taxpayers can choose to pursue. However, it is important to note that entering into this appeals program for tax relief is binding. As such, it requires taxpayers to waive their right to further appeal or relief proceedings in federal court. Taxpayers who wish to engage in this program can do so only after receiving one of 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
Taxpayers can enter into CAP by completing by completing IRS Form 9423, Collection Appeal Request. However, taxpayers should be aware that procedures for entering into the program differ if you have not already been contacted by an IRS Revenue Officer.
While CAP is often used to appeal the cancellation or denial of an installment agreement, it can be used to provide a pathway to relief for other concerns. You may also appeal rejected offers in compromise (OIC), denied requests to abate penalties, denied trust fund recovery claims, and proposed trust fund recovery penalties.
Tax Lawyers Provide Experience Tax Relief GuidanceThe experienced Los Angeles attorneys and CPAs of the Tax Law Offices of David W. Klasing can assist taxpayers facing significant tax obligations and request relief. We can provide guidance as to whether you are required to provide financials to the IRS. If not, we can help determine whether it would be prudent to do so despite the lack of an obligation. We can also assist a taxpayer in determining how the IRS calculated his or her income, and address discrepancies in the taxpayer’s ability to pay that may result from an errant calculation. Furthermore, we can assess how the taxpayer and IRS handled “allowable expenses” and determine if errors or oversights provides room for tax relief. Finally, we can also discuss the benefits and drawbacks presented by a tax-motivated bankruptcy.
The above represents only a selection of the relief options we can explore. If you are facing an undue hardship to the imposition of significant tax obligations, penalties, and interest you may be able to reduce the burden by requesting tax relief. To schedule a tax relief consultation with an experienced tax professional from the Tax Law Offices of David W. Klasing call 800-681-1295 today or contact us online. The professionals of the Tax Law Offices of David W. Klasing are experienced on Los Angeles tax relief.