Firstly, an individual must have filed every tax return that is overdue.  Additionally, the taxpayer needs to have completed all tax returns in the previous six years; however, the time frame may be extended depending on the circumstances, and the taxpayer may not be required to file in years that he/she did not make sufficient income to warrant a tax return.

The second concern is that the taxpayer be in compliance with all current tax payments.  In cases of individuals who are self employed or receive revenue from dividends or royalties, compliance includes estimated tax payments, which must be made four times per year, after each quarter.  So, for example, before a self-employed wage earner can resolve his/her tax debt, the IRS demands that he/she make all requisite Estimated Tax Payments.  It is advisable to know whether you are deemed compliant by the IRS, and if not, how you can take steps to obtain compliance status.

The IRS must go to the District Court in order to force an individual to respond to an IRS Summons.  When this occurs, bear in mind that the Statute of Limitation on the IRS tax debt is suspended, to recommence once the lawsuit has been concluded in the District Court.

The service of an IRS Summons must meet the following guidelines: 1) the Summons’ face need have an attestation with the correct signature; 2) The Summons must either be given directly to the person summoned, left at his/her usual residence with a person with the maturity and discretion to send it to its intended recipient, or attaching the Summons to the door of the residence in a way that will not permanently alter the door.

Additionally, the time and place of the execution of the IRS Summons must fall within the following constraints: 1) The time and place must be deemed reasonable; 2) the date must not be a Saturday, Sunday, or legal holiday; 3) The date of service or appearance cannot be determined in the same way as the appearance or submission of records, which is ten days for the liable party, whereas a third party receives 23 days; 4) The date may be postponed by mutual agreement, if for example, the liable party becomes ill on the date of the Summons.

A number of people can be summoned via an IRS summons, including: 1) the liable party under investigation; 2) an employee of the person liable; 3) a person in care of books of the liable party; 3) a anyone who might have information that may aid the IRS in assessing the party’s liability or collecting that liability.

Additionally, the information that the summons intends to glean may be received by an oral statement or via the submission of the individual’s records, but it must be pertinent to: 1) Determining any return’s validity; 2) Making a new return; 3) Ascertaining tax liability; 4) Collecting an IRS tax debt; 5) Questioning any breech of the law regarding IRS laws.

Historically, the IRS is given a certain degree of freedom as to the information that a summons intends to ascertain, but there are still certain guidelines that an IRS Summons must meet in order to be enforceable, such as: 1) The Summons must be served in accordance with the law; 2) The summons must be authorized by the signature of an IRS officer of proper rank; 3) The Summons must detail the information that it intends to discover; 4) The Summons must stipulate a realistic time and place for the conference.

After each quarter, as the individual accrues income from sources that do not automatically withhold income for the federal government, the individual pays estimated tax payments on that income.  Both ways of remaining compliant with the IRS, that is, by withholding funds from paychecks and submitting ETPs, are designed to help the taxpayer avoid accumulating IRS tax debt.  ETPs are a little more involved, but all the relevant information can be found in the Estimated Tax Worksheet.

There are a number of reasons why an individual would want to send in ETPs regularly.  Firstly, it makes budgeting concerns easier, since tax payments are smaller and made more regularly, they are more easily planned.  Secondly, should the individual accrue an IRS tax debt, having submitted ETPs regularly and on time improves the individual’s prospects for resolving his/her tax debt.  In short, ETPs help the taxpayer avoid trouble with the IRS while serving as insurance that, should something unforeseen occur that drives an individual into tax debt, the individual would be better prepared to cope with the problem without significant or longstanding financial harm.

For a taxpayer, an Offer in Compromise represents a great opportunity to resolve tax debt and move forward. For the IRS, accepting an Offer in Compromise represents the same opportunity, but it comes with the expectation that residents will begin to pay their taxes on time.

Hiring a California offer in compromise attorney can help you improve the chance that your offer will get accepted. At a minimum they can review your situation and provide you valuable information that will allow you to make an informed decision.  California tax lawyers can complete these tasks for you.

California tax lawyers will review your situation and submit the Offer in Compromise on your behalf.  Upon submission of the offer in compromise, the IRS must verify that the offer can be processed. The offer goes through a screening process to determine if the taxpayer or taxable entity has: (1) paid the required application fee; (2) ensured that all delinquent income tax returns have been filed; (3) not instigated a bankruptcy court proceeding; and (4) not been issued an audit notification.

Many California offers in compromise are denied. The two main reasons that rejection occurs is because the documentation is inaccurate or incomplete or the taxpayer earns in excess of the required allowance. Your offer in compromise attorney will make sure that your filing is accurate and complete.

A California tax lawyer will help you get your Offer in Compromise completed accurately and will give you the greatest chance that your offer will be accepted the first time it is submitted.

Need a California Tax Attorney?

The IRS has many programs in place to help residents with back tax problems. The options largely consist of an Installment Agreement, Offer in Compromise (“OIC”), and Currently Not Collectible status.  Your California tax attorney will understand these programs in detail so you don’t have to.

If you proceed with an Offer in compromise, you will be required to disclose sensitive financial information. Rejection rates for OICs are high, but your chances for success will increase if you work with a California tax attorney. Should your OIC be rejected, there is an appeals process.  A Currently Not Collectible option will still require full disclosure of the taxpayer’s financial situation.

Residents must file Form 656 if there is uncertainty that the tax liability could be collected in full via a lump sum payment or an installment agreement. Taxpayers should file Form 656-L when they believe that the tax liability claimed by the IRS is incorrect. You are not allowed to file offers simultaneously and claim both that the tax liability is incorrect along with an inability to pay the tax liability due.

If you want any hope of success you must make sure that you stay current with all your tax filings and payment requirements, including estimated taxes and federal tax deposits. Becoming delinquent or filing late could put an end to any chance of success you may have had.

Who is the Best Tax Attorney in California?

This issue is not as easy as you would think.  Even Income tax attorneys specialize in specific areas of the income tax code, including sales tax, business taxation, tax planning and strategy, etc.  The best California Tax attorney is the one that can help you get your income tax issue resolved and help you with ongoing income tax compliance. 

Assuming that paying your income tax bill in full is not an option, there are many options available if you need IRS tax relief. You may actually find that you don’t need to do anything to resolve your back income tax situation. This is because the IRS has only ten years to collect back income taxes starting with the date on which the income taxes were assessed. As a result, if you know that you have unpaid taxes that are older than ten years, the IRS may not be able to collect those taxes anymore.

Offer in Compromise applications are frequently denied and the Internal Revenue Service has the legal right to refuse your appeal. The Internal Revenue Service cannot be sued for not accepting the Offer in Compromise from California residents.

People should realize that if they have income tax problems there are many options afforded to them by the IRS. Procedures have been placed in service by the IRS to address most tax problems. Just make sure that you are working with a California Tax attorney and understand the options available to you.

For a taxpayer, an Offer in Compromise represents a great opportunity to resolve tax debt and move forward. For the IRS, accepting an Offer in Compromise represents the same opportunity, but it comes with the expectation that taxpayers will begin to pay their taxes on time.

Hiring an Arizona offer in compromise attorney can help you improve the chance that your offer will get accepted. At a minimum they can review your situation and provide you valuable information that will allow you to make an informed decision.  Arizona tax attorneys can complete these tasks for you.

Arizona tax attorneys will review your situation and submit the Offer in Compromise on your behalf.  Upon submission of the offer in compromise, the IRS must verify that the offer can be processed. The offer goes through a screening process to determine if the taxpayer or taxable entity has: (1) paid the required application fee; (2) ensured that all delinquent tax returns have been filed; (3) not instigated a bankruptcy court proceeding; and (4) not been issued an audit notification.

Many Arizona offers in compromise are denied. The two main reasons that rejection occurs is because the documentation is inaccurate or incomplete or the taxpayer earns in excess of the required allowance. Your offer in compromise attorney will make sure that your filing is accurate and complete.

An Arizona tax attorney will help you get your Offer in Compromise completed accurately and will give you the greatest chance that your offer will be accepted the first time it is submitted.

Need an Arizona Tax Lawyer?

The IRS has many programs in place to assist taxpayers with back tax problems. The options largely consist of an Installment Agreement, Offer in Compromise (“OIC”), and Currently Not Collectible status.  Your Arizona tax lawyer will understand these programs in detail.

If you proceed with an Offer in compromise, you will be required to disclose sensitive financial information. Rejection rates for OICs are high, but your chances for success will increase if you work with an Arizona tax lawyer. Should your OIC be rejected, there is an appeals process.  A Currently Not Collectible option will still require full disclosure of the taxpayer’s financial situation.

Taxpayers must file Form 656 if there is uncertainty that the tax liability could be collected in full via a lump sum payment or an installment agreement. Taxpayers should file Form 656-L when they believe that the tax liability claimed by the IRS is incorrect. You are not allowed to file offers simultaneously and claim both that the tax liability is incorrect along with an inability to pay the tax liability due.

If you want any hope of success you must make sure that you stay current with all your tax filings and payment requirements, including estimated taxes and federal tax deposits. Becoming delinquent or filing late could put an end to any chance of success you may have had.

Who is the Best Tax Attorney in Arizona?

This question is not as easy as you would think.  Even tax attorneys specialize in specific areas of the tax code, including sales tax, business taxation, tax planning and strategy, etc.  The best Arizona Tax attorney is the one that can help you get your tax issue resolved and assist you with ongoing tax compliance. 

Assuming that paying your tax bill in full is not an option, there are many options available if you need IRS tax relief. You may actually find that you don’t need to do anything to resolve your back tax situation. This is because the IRS has only ten years to collect back taxes starting with the date on which the taxes were assessed. As a result, if you know that you have unpaid taxes that are older than ten years, the IRS may not be able to collect those taxes anymore.

Offer in Compromise applications are frequently denied and the Internal Revenue Service has the legal right to refuse your appeal. The Internal Revenue Service can not be sued for not accepting the Offer in Compromise from Arizona taxpayers.

Taxpayers should realize that if they have tax problems there are many options afforded to them by the IRS. Procedures have been placed in service by the IRS to address most tax problems. Just make sure that you are working with an Arizona tax attorney and understand the options available to you.