If you find yourself facing the IRS collections process along with the related penalties and consequences that follow, California Tax Boutique is standing by with access to various tax resolution programs and is ready to help. As Enrolled Agents, we can provide you with experienced tax resolution advice, guidance, and the representation needed to successfully navigate the IRS or Franchise Tax Board. We are experts fluent in all available tax resolution options. Our only mission is to remedy your IRS and/or Franchise Tax Board problems and get you back in good standing.
Below are just some of the tax resolution options available:
Have you received a concerning notice from the IRS or the Franchise Tax Board? Are you unsure on how to respond or what documents you need to provide? We can quickly assist you in decoding the notice to promptly respond with the appropriate information to ensure your tax issues are handled.
Do you owe the IRS a large sum of money that you cannot afford to pay? An offer in compromise may allow you to settle your tax debt for less than the full amount you owe. While many people believe an offer in compromise is merely a negotiation with the IRS, that is untrue. The IRS follows strict guidelines when determining whether a taxpayer qualifies for an offer in compromise. There are three types of offers: (1) Doubt as to Collectibility - this is the most common type of OIC. You may qualify for this type if you owe back taxes and cannot pay them, even if you sold all of our assets or paid the balance through an installment agreement before the statute of collections expires; (2) Doubt as to Liability - This type includes tax debt where the taxpayer disputes the facts, law or argument for the tax debt. If the debt is due to an audit, an audit reconsideration may be a better option.; (3) Effective Tax Administration - If you have a large tax debt and do not dispute the amount you owe, the IRS has the discretion to accept an offer when exceptional circumstances exist, such as payment of the debt would create a severe economic hardship.
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The IRS may determine that you cannot pay any of your tax debt due to your financial circumstances. In that instance, the IRS may report your account as "currently not collectible," which delays any collections efforts of your tax debt until your financial circumstances improve. However, if granted this status, the IRS may file a tax lien as a matter of public record, and penalties and interest will continue to accrue on your tax debt.
If you can financially afford to pay your tax debt, you can make monthly payments through an installment agreement.
You are expected to immediately pay your tax liability in full. However, that is not always possible for everyone. If you cannot financially afford to pay your full tax debt by the Collection Statute Expiration Date (CSED), and you have some ability to pay, you can enter into a partial pay installment agreement. This is sometimes referred to as a backdoor OIC.
Depending on your circumstances, you may qualify for relief from penalties if you made an effort to comply with the IRS requirements, but were unable to meet your tax obligations, due to circumstances beyond your control.
If you have any questions about the IRS collection process or would like more information about how we can help, do not hesitate to contact us today.