Sacramento Tax Lawyer
Taxpayers seeking relief from outstanding tax debt should call Sacramento tax lawyer today. Being in debt to the IRS can cause undue stress on taxpayers and affect anything from the ability to afford paying bills to the credit ratings needed for larger purchases. If you are in debt to the IRS and don’t know what the next step should be, a tax attorney of Sacramento can help figure out your next move.
When a taxpayer owes tax debt, the IRS will work to collect on that balance. Sacramento tax attorneys encourage taxpayers to pay off their full balance as quickly as possible, and in one lump sum if funds are available. However, this is not the case for a lot of people struggling with tax debt. For those taxpayers, there are several programs in place to make debt settlement a possibility. The programs involve financial disclosure and a commitment to maintain the terms set in any agreements between the taxpayer and the IRS.
For repayment options, the IRS has a series of Installment Agreements (IA’s) available to taxpayers. To find the best program, a taxpayer can hire a Sacramento tax attorney. Most of these agreements involve a 60-month commitment paying a pre-arranged amount, and the taxpayer repays the full amount within that time. Some are set up to vary the payment amount within the agreement to allow for larger expenses. In the case of any repayment, once the balance has been cleared it is very important for taxpayers to remain in good standing with the IRS. To make sure not to fall back into debt status, a taxpayer should find a tax lawyer Sacramento to discuss how to stay compliant. If a taxpayer is not careful, there could be another debt owed and the same procedures would have to be repeated.
There are a few programs offered by the IRS that do not require that the full balance be repaid. An Offer-In -Compromise (OIC) is an agreement between the taxpayer and the IRS in which a certain amount is paid to the IRS and then the taxpayer is released from their liability. The amount is determined by the taxpayer’s financial situation. Reviewing financial documents with a tax lawyer in Sacramento will help to prepare a case before the IRS to ensure the best possible outcome. An OIC is beneficial to both the IRS and the taxpayer, as the taxpayer is no longer held in debt by the IRS, and the IRS receives a payment on the delinquent account. There is also an option for those taxpayers who cannot pay anything. Currently-Non-Collectible (CNC) is a status awarded by the IRS to taxpayers who receive less income than their outgoing monthly expenses. This case must be evaluated to show that the money spent by the taxpayer is going toward necessary expenses. Collections are halted on a taxpayer with this designation. Sacramento tax lawyers should be consulted to confirm that this is not only a viable option, but that the circumstances actually call for a CNC status to be awarded.
When tax debt has brought trouble to the life of a taxpayer, the best thing to do is to take action and resolve the balance owed through the channels the IRS has set up. If you’re worried about your tax debt balance, or have missed filing or paying your taxes, call a tax attorney Sacramento today and get on the right track toward debt relief!