Tax Resolution Lawyers Bay Area CA

The IRS Fresh Start program for individual taxpayers and small businesses can help. The IRS began Fresh Start in 2011 and has since expanded the program by adopting more flexible Offer-in-Compromise terms. This program assists those who qualify with Releases of Federal Tax Liens, streamlined Installment Agreements, and more flexible Offer-in-Compromise terms.

The IRS Offer in Compromise program is a Federal Tax Relief Program for those taxpayers who cannot afford to pay their tax debt due to financial hardship, or have a legal claim and don’t think they owe the tax under the tax code.  We prepare all the required forms after verifying a taxpayer qualifies for this program.

If you are suffering from financial hardship, you can apply for CNC status with the IRS. Once in place the IRS will not issue a levy on your paycheck or bank account and will stop all collections activities against you. You must be under a financial hardship and have zero disposable income left at the end of each month. Your Non-Collectible status remains active, as long as you make the periodic filings required to maintain this status, for as long as you are experiencing financial hardship.

Installment Agreements are arrangements by which the Internal Revenue Service allows taxpayers to pay liabilities over time. During the course of installment agreements penalties and interest do continue to accrue. Generally however, no levy may be made while the IA is pending.

This is usually the best option for taxpayers who will not qualify, due to income or net-worth, for the hardship programs offered by the IRS.  If successful the IRS will remove or reduce interest and penalties on your tax debt while you must payoff the principle amount. We advise that the tax debt be paid in full before seeking abatement, otherwise (regardless of your petitions success) new penalties will be added leaving you in the same position.

The IRS will file a tax lien once a taxpayer owes more than $5,000.  A lien can be viewed similar to an “I owe you” to the IRS.  This is to protect the government’s interest in collecting the debt owed to them.  A lien can only be removed once the tax debt is paid in full, unless you qualify for release under the provisions of the IRS Fresh Start Program.  You can request a hearing before your lien is filed if you respond to your notices.

A continuous garnishment on your paycheck that remains in place until your employer receives notice of release. A wage garnishment can only be released by submitting full financial information.  Once released, consider entering into an installment agreement to avoid future collections.

The IRS issues a one-time levy to your bank account and has rights to all of the funds in your accounts, up to the total balance due.  A bank levy can only be released within 21 days from the date it was issued.  If you have a bank levy please call us ASAP due to the strict release deadlines.