Tax Debt Relief: What You Should Expect

Tax Debt Relief California varies greatly depending on many factors. To whom you owe money, how much money you owe, and what your current finances are like are some important factors that are considered when trying to settle tax debt problems. Fees and other penalties can also accrue that will likely make repayment even more involved. With this considerations, there are some decisions that can be made to help you with this process.

Offer in Compromise

An Offer in Compromise is simply a contract between you and the IRS. This situation can help you greatly as usually the amount owed is reduced to a smaller amount that you can pay on the condition that you will pay your taxes for the next five years. Organizing these kinds of Offers is best handled by a professional tax expert. They can help argue your current financial situation and other factors so that you are best represented on what you can provide.

Wage Garnishment

Any time fees payable towards the IRS go uncollected for any lengthy period, liens as well as salary garnishments can become prominent. Wage garnishments make it more difficult to maintain a fixed budget to pay other debts as well. It is best to avoid this situation as it is a form of penalty and does not produce a helpful result. To avoid having your wages garnished, it would be best to contact an expert tax advisor or attorney to help mitigate any greater potential damage and any further penalties.

IRS Payment Plans

The IRS offers some people the ability to pay off their tax debts in many payments instead of one. This method helps to reduce excessive fees and other penalties by allowing you to pay back affordable chunks in a timely manner. These payment plans are best left handled by tax experts or attorneys so that your situation is fully disclosed as to why you qualify for such an option.

Tax Penalty Reduction

Like any other business, organization, or department, the IRS makes mistakes from time to time. This can arise as accrued penalties for failing to pay previous taxes. This process is automated through a computer system and is compiled against next year's file. Because computers are relied upon during this process, excessive or inaccurate records depicting delinquent payments can occur. In this situation, a professional tax advisor or attorney can help remove these inaccurate records and can help reduce some or remove all tax debts that are owed to the IRS.

Tax debt is a problem for some people because of different financial burdens and situations. Severe penalties such as garnished wages can be suffered, but there are other ways to handle these tax problems. Professional tax advisors and attorneys are able to help you set up: payment plans and Offers in Compromise. These experts can also help you reduce or remove inaccurate records from your tax debt. It is always best to seek professional help in these situations.

Devin Finley is a freelance writer and tax expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://optimataxrelief.com/

Best tax debt relief

Tax relief:

Understanding and coping

with the IRS

If you’re in receipt of an IRS Notice and Demand for Payment you’re definitely interested in your options for Best tax debt relief.  You are also familiar with the term levy and have 30 days to do something about it. Not to be confused with the noun levee - a protection against flooding - levy is both a verb and a noun, which when used by the IRS, can put you in rather deep financial straits.

 

Here is the IRS definition of levy:

“A levy is a legal seizure of your property to satisfy a tax relief. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.”

 

If you don’t pay your taxes, or if you don’t come to some sort of settlement or agreement with the IRS, the government can actually confiscate and sell off your real or personal property that you either own outright or have a personal interest in, such as:

• your car, boat or home

 

• your wages, retirement, bank and investment accounts, rent incomes and even the cash value of your life insurance policy

 

The three criteria for an IRS levy

The IRS will seize your assets only after your case meets the following requirements:

• You have taxes owed and have received a Notice and Demand for Payment.

 

• You failed to pay the tax after receiving a final notice along with the notice of your right to a hearing.

 

Your hearing and appeal determined that the levy is proper and warranted

 

 

The notification process all takes place over a period of about 60 days, and if you opt for a hearing, you can also appeal any adverse ruling through a complicated and lengthy bureaucratic process that can be baffling and confusing to the average wage earner. You should definitely get some help here.

 

Your protection against the hardship of levying

The IRS has the power to release a levy if “they determine” (i.e., you can prove) “immediate economic hardship”. The release won’t exempt you from having to pay the tax, but you can work out a payment plan or other means to discharge the debt. Again, don’t run and hide. Get some professional help and be up front and proactive with the IRS manager handling your case.

 

You have 30 days to act

When you receive your first notice you can request what the IRS calls a “Collection Due Process” hearing by filling out their - you guessed it - a Collection Due Process Hearing request. Alternatively, you can simply ask the IRS manager to review your case. Do that within 30 days after receiving the notice and you’ll get an opportunity to clear up the problem.

 

You have a lot to lose

The IRS and its thousands of pages of regulations and procedures allows it to throw the book at any delinquent taxpayer. Our complex tax system shows no signs of getting simpler, and the average American definitely needs help when the IRS decides to bring their power to bear against you. Contact Optima Tax Relief if you’re facing a lien or levy. These folks will help you deal with the IRS and help lead you out of trouble.

 

Captain Money enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation.

 

Captain Money has a bachelor’s degree in economics and a LL.M. degree in Taxation from University of San Diego School of Law.

 

Captain Money is admitted to practice law before the United States Tax Court and the Supreme Court of the State of California. 

 

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