Do you have a tax debt that you can’t seem to get rid of? You might be able to lighten the burden. There is about $450 billion in unpaid tax debt in the United States per year. Underreporting accounts for more than $380 billion of the tax shortfall. Tax relief does not always imply that you will no longer owe money to the IRS. Instead, finding a means to set up a payment plan that works for you or getting rid of some of that debt is all about tax relief.
There is also particular tax relief available in cases such as natural catastrophes, where victims may be eligible for deadline extensions or a reduction in the amount payable. If you want to file for tax relief in Sacramento but cannot figure out where to start, you may wish to seek assistance from a firm or team of experts who know about tax relief.
Why Hire a Tax Firm or Expert?
It is highly suggested to hire a Sacramento tax filing firm because the firm will be present during your audit, can engage with the IRS on your behalf, and assist you in negotiating resolutions if necessary. Having knowledgeable legal counsel on your side can assist you in avoiding overpaying as a result of your audit.
Some taxpayers disregard IRS warnings and letters because they are afraid or unsure of how to respond. In such cases, the Internal Revenue Service may have no choice but to threaten you with criminal tax evasion charges. If you find out that you’re the subject of an IRS criminal investigation, you’ll want to hire a tax assistance company in or near Sacramento as soon as possible.
Who qualifies for getting a tax reduction or tax relief?
In Sacramento, you must meet all filing and payment requirements before the IRS may consider decreasing your tax obligation. If you’re in the middle of a bankruptcy case, you’re ineligible. To confirm your eligibility and develop a tentative proposal, use the Offer in Compromise Pre-Qualifier.
When you get the Offer in Compromise Booklet, Form 656-B, you’ll find all the forms and step-by-step instructions for submitting an offer. If you meet the Low-Income Certification guidelines, you won’t have to send the first payment or the application fee, and you won’t have to make monthly payments while your offer is being evaluated.
Other FAQ in connection to Tax Relief in Sacramento
Q: Are Tax debts negotiable?
A: Yes, you can work it out with the IRS. If you owe the federal government a tax liability, an Offer of Compromise may make it easier to reach an agreement to pay your debt for a fraction of the entire amount owed. If the IRS feels the citizen has other assets it can confiscate to satisfy the debt, it may refuse to accept the Offer In Compromise. The OIC is unlikely to be approved if the citizen transferred assets into the name of another person or if it would be against public policy, such as settling a tax bill when the citizen was convicted of fraud.
Q: If I can’t pay my taxes, what should I do?
A: In the event that you are unable to pay your taxes, the IRS offers payment options. Which option is best for you is mostly determined by the amount you owe and your current financial situation? Each option has its own set of requirements, and some of them charge a fee—most alternatives for paying down a tax obligation work best if you take action right away. You should file your return on time, with or without payment, because late filing penalties can be costly.
Q: Is it possible for me to claim wage garnishments from my California taxes?
A: To pay off a debt, a government agency, a lender, or the state of California commonly garnishes your salary. Alimony, child support, past-due taxes, and lawsuit settlement payments may all be included in these debts. Garnishment may be tax-deductible depending on the nature of the debt. For instance, if you were garnished by a hospital for prior medical bills, you can claim the garnishment as an itemized deduction. Garnishments for alimony, student loan interest, and unemployment compensation repayments may also be claimed.
Q: What can I do if I am unable to pay my tax obligations?
A: In the event that you are unable to pay your taxes, the IRS offers payment options. Which option is best for you is mostly determined by the amount you owe and your current financial situation? Each option has its own set of requirements, and some of them charge a fee—most alternatives for paying down a tax obligation work best if you take action right away. You should file your return on time, with or without payment, because late filing penalties can be costly.
Q: In California, can I be fired for having a wage garnishment?
A: Your Sacramento stuff might vanish mysteriously, or the employer may view a pay garnishment as a risk to bring you around cash. Perhaps you are regarded as untrustworthy because you show evidence of failing to honor responsibilities or displaying poor character, such as failing to repay what you owe. Finally, annoy the payroll department, and your organization will be forced to deal with a court order. Despite this, your employer is not allowed to fire you because of wage garnishment. The Consumer Credit Protection Act makes it illegal. But proceed with caution. If you have more than one garnishment, the firm may terminate you.
Q: What are the acceptance rates for Offers in Compromise (IRS Fresh Start initiatives and programs) agreements?
A: Since the year 2000, the number of citizens who make repeat offers following an IRS denial has increased, with the percentage ranging from 15% to 44% of the total number of proposals received by the IRS. OIC approval is rare for two reasons: either the taxpayer cannot afford to pay the offer amount or the taxpayer does not qualify for an OIC. The truth is that OIC eligibility is based on a calculation of a taxpayer’s ability to pay a tax bill before the IRS runs out of time to collect it (called the collection statute expiration date).
About Coast One Tax Group
Coast One Tax Group, situated in Encino, California, was established in 2008 and provided tax relief services to individuals and corporations in all 50 states (including Washington, DC). They have exceeded their thousands of delighted customers’ satisfaction in their experience of over 25 years. Thanks to in-house lawyers and enrolled agents, this full-service organization produce top outcomes quickly and thoroughly. They specialize in tax resolution and settlement and many others, such as levy release, representation, lien withdrawal, audit tax preparation to name a few. Their process of qualification is quick and easy, and a client will be able to save up to 93 percent (or more) on past taxes with just a 10-minute phone conversation.
Coast One Tax Group is a company that provides a wide array of professional services for both business tax and personal resolution. Their team of CPAs, tax attorneys and specialists deal with IRS and state settlements, petition for penalties, tax liens, bank levies, and more.
