Mike, Author at Legal Tax Defense

Tax Debt Relief Company

Posted on May 3, 2018April 23, 2024 by Mike

When looking for the best tax debt relief company and deciding which company is good and legitimate will require research. If it’s your first time looking for tax relief help, then you can always trust Legal Tax Defense. We are the nation’s leading tax experts with tax attorneys and enrolled agents that can help you resolve any tax problems.

Currently, taxpayers are in need of tax relief help companies are growing at a very fast phase for the past 5 years. With the increase in the number of tax resolution firms comes an equivalent increase in the number of companies who leave their clients with higher tax debt and rather than solving the problem. We strive to give our clients the one on one treatment they deserve leaving them with a fresh clean start with IRS.

Steps To Find the Best Tax Relief Company

Here are a few tips on finding the best tax relief company and deciding which tax relief firms can offer you the best tax relief services?

#1 Understand the Different Types of Tax Relief Firms

There are mainly 3 main types of firms that handle IRS tax issues. They are Natural Resolution Firms, Software-based firms, and certified public accounting firms.

National tax resolution companies: These types of firms are a big alternative to certified public accounting firms as they have cheaper services that are very affordable. You deal with the junior partners while the main tax lawyer or attorney works in the backstage. You will typically never speak with a tax professional.
Software-based tax relief firms: this is the cheapest tax relief help you can possibly get, it is recommended to people who do not have a seriously complicated situation. They are automated by software just like filing current tax year returns. The software has been designed to take you step by step from the start to the finish. These companies don’t Taylor fit tax resolution services to your specific needs.
Certified public accounting firms (CPA): these companies are the most expensive and most times dependable and efficient tax relief help you’d find available. A lot of times CPAs do not negotiate with the taxing authorities, they simply do accounting, bookkeeping and tax filings.
Legal Tax Defense – We are a tax relief company that has the most affordable rates and best taxation experience firm. You’ll get the best results for any tax problems. We have both tax attorneys and certified enrolled agents working parallel to solve extremely complex situations. Our staff and tax professionals are trained to specialize in tax debt relief.

#2 Find Out How Long The Tax Relief Company Has Been In Business

Research the tax relief company and be sure of it is established. Check the secretary of state website of your state, e.g. sos.ca.gov for California for a more precise and accurate data of the tax relief company establishing date. Remember, the older the firms the better chance that you will get the best tax relief option for your tax debt problem.

Be aware that many tax relief companies lie about how long they have been in the tax relief industry. And most of the time they will claim that their tax resolution firms have been in existence for a decade or even longer when in truth, they only exist just for a few years.

#3 Ask About the Proprietors of the Tax Relief Company

Make sure to ask about the partners of the firms, and qualifications of their tax pros. Any unwillingness by the respondent is a sure sign that there’s something fishy about the firm. He or she does not want you to know the owners and who will be handling your case.

#4 Review The Tax Relief Company Success Rate and Complaints

Research about how successful the tax relief company has been with their case. You can do this by checking the better business bureau website for the number of complaints they have, the ranking of the tax relief firm and all other necessary information. The success rate will give you a quick insight of the tax relief company.

Usually, when a tax relief help company tells you “NO” when you ask about the guarantee of them fixing your tax debt issues, it is most times a sign of honesty and good ethics.

#5 Tax Relief Company Say They Have a Relationship or Connection with the IRS

Ethics and character of a good tax relief company show the true image and culture of the firm. If tax relief companies tell you that they have a relationship or connection with the IRS, it is very likely that the tax relief company is lying to you.

#6 Tax Relief Company Ask You to Pay In Full at the Start

Any tax relief companies that ask for a full payment upfront are very likely that they are trying to scam you. It takes time to resolve tax problems and no tax relief company can resolve your matter in a snap. An ethical tax relief firm usually charges you as needed based on performance.

#7 Make Sure the Tax Relief Company Have Licensed Tax Attorneys

You should always research the tax relief company attorneys. Are the attorneys qualified enough? Does the attorney have enough experience? These are questions you should ask. Any tax relief company telling you they have a licensed tax attorney is not always the truth. You should always ask for proof to make sure the tax lawyer or tax attorney is licensed before the hire.

Not Sure Which Tax Relief Company to Hire? We Can Help

At Legal Tax Defense, you don’t have to go through all the stress to resolve your tax problem. We have excellent records and outstanding reviews with an A+ rating on the BBB. We are a well-established tax relief company with senior tax debt attorneys and Enrolled Agents who are well trained and specialize in solving tax debt or any tax-related issues. Call us today for a free case evaluation!

Tax Debt Problems and the Consequences of Not Having Them Resolved

Posted on April 20, 2018 by Mike

The majority of people face tax debt problems are taxpayers who made financial mistakes and don’t know the tax law very well. The results are that they end up owing the IRS money and end up not being able to pay.

Many people overextend themselves and even evade going to jail because of their tax debt problems. The consequences are real but a lot of people think this only happens in film and television. The average person who owes money to the Internal Revenue Service will not go to jail. They can face long years of debt and financial struggle due to mistakes that they made.

The IRS is the largest collection agency in the world. The legal rights granted to the IRS include garnishment of your income from all sources, placing a lien on any property or credit that you own or are paying for, and outright seizure of any property that you own.

The amount of tax that you owe acclimates interest and penalties on daily biases. You may be subject to penalties for late payment as well. The idea here is not to intimidate taxpayers but to make the taxpayer take steps to resolve the tax debt problems as quickly as possible.

Many people who owe a substantial amount of money to the IRS think that they can handle the problem on their own. Don’t try and tackle your tax matter alone, reach out to a tax pro. The goal is to avoid increasing tax debt that could have been avoided if the person had looked for tax debt relief to deal with their tax debt problems.

A licensed tax attorney is your best source for advice and direction for tax debt relief. They can present you with the tax relief options that apply to your specific situation. A tax attorney can protect your assets from the IRS. This gives you time to make the best decision possible that costs you the least. And if you want to lower your debt or eliminate your debt, an experienced tax lawyer is your best resource for negotiating a reasonable tax debt relief with the IRS.

Common Relief for Tax Debt Problems

The following are some of the tax relief options that a tax attorney can help a person with who has tax debt issues. The majority of people would never know about these alternatives without the advice of an experienced tax lawyer.

Apply for Form 433A or 433B

The IRS has developed programs to resolve tax debt problems for taxpayers who can’t afford to pay their tax debt. Form 433A or 433B makes the tax collection process stop. The requirement is that a person or a business proves to the IRS that they only make enough money to meet living expenses. The taxpayer account is frozen and all collection efforts cease until the taxpayer can afford to start making payments.

Negotiate and Compromise with the IRS

The IRS will compromise. The basis for the compromise is the taxpayer’s ability to pay. Health factors, disability, and age are taken into account. You pay what you can. Another compromise allows you to pay less if paying the full amount would take away your home.

The IRS is willing to negotiate for a release of the garnishment of your income in part or in total. You and the tax attorneys must prove that the garnishment produces an unnecessary hardship on you and your family. An example would be the inability to provide proper nutrition for your children.

You are also allowed to negotiate the release of some bank accounts from control through an IRS levy. This procedure is complicated because it involves a bank and the IRS. The bank wants to protect itself more than you.

Separate and Joint Accounts

The IRS may attempt to levy a spouse’s account that is held only by the spouse. If the spouse is not a part of the business that the IRS is seeking taxes from or the couple files separate tax returns then, the IRS acted illegally.

Installment Repayment Plans

The IRS will arrange for a taxpayer to pay their tax debt over time. The amount of the monthly payment is based on income and living expenses. This arrangement reduces or can completely eliminate interest payments and penalties.

File Bankruptcy

The IRS sees bankruptcy as the chance for a person or a business to start new. There are some restrictions that prevent the use of credit for a period of time. You may qualify for complete relief of all debts or a partial release from some tax debt. This step should be taken with sound advice.

Tax debt problems can be a source of anxiety, emotional upset, and paranoia. A letter from the IRS can make your life spin out of control. Fear of losing everything that you have worked for all of your life threatens you every minute of the day.

Not Sure How to Handle Your Tax Debt Problems? Call Us

It takes years to master the taxation law. Getting advice and direction from a tax specialist is very important when dealing with tax debt problems. Our tax lawyers help to create a plan of action to solve tax debt problems with the IRS. We will take the time to evaluate your situation. Our goal is to give you the best tax relief advice that fits your circumstances and ultimately give you a fresh debt-free life again.

Do I Owe the IRS? How to Find Out

Posted on April 20, 2018 by Mike

If you are wondering, do i owe the IRS? Here are the few ways you can do check to see if you are in the clear with IRS.

Contact IRS Tax Support

The IRS offers a variety of resources to help you determine if you owe money. The IRS tax tables provide information that shows the percentage of taxes that the government collects for certain things, such as rent, real estate profits or benefits obtained from investments. If you had obtained income or profits from a sale, you could consult the tax tables to determine the amount of money you will have to pay to the government. Note that the tables do not consider compensation deductions.

The IRS website contains detailed information, including IRS publications that provide instructions on how to contact the right department or submit the necessary forms. Some publications cover the percentage of your tax on specific sales. You can also find out what to do if you owe money to the IRS.

Wait for a Letter from the IRS

One of the easiest ways to know if you owe money to the IRS is to wait for a tax bill from the agency. If you had recently moved or paid taxes from a different address than your home address, the times in which the post office sends you a letter, which will include the amount owed and the payment methods available, could be delayed. Sometimes, you will receive a “Notice of Payment” letter from the IRS, which is essentially an invoice.

Receiving an invoice or letter from the IRS does not always mean you owe money. In some cases, the IRS may have misinformation in the registry. To correct this problem, you may need to visit the local IRS office or contact the office that appears on the bill or letter and finds out what documentation you must provide to resolve the situation. In some cases, you may have to hire a tax attorney or request an audit to resolve your tax debt.

Get Help from a Public Accountant (CPA)

Another way to get help to determine if you owe money to the IRS is to work with a certified public accountant (CPA). Most people use the services of an accountant to present their income taxes, and although many people expect a refund, the CPA can also inform you of any outstanding debt. Software programs designed for filing income tax returns can also notify you of possible balances owed to the IRS. If you think there is an error, get a second opinion.

Use the IRS Online Tool

With the IRS online tool, you can calculate the taxes you owe, since it will show you the balance of each fiscal year with the amount of the capital, the interest or the penalty. It will also show you the payments you made during the last year and a half and what is the amount of payment you have made.

You can trust the result because the tool can update interests and fines every 24 hours, although for the payments to be published there is a delay of one to three weeks. Therefore, if you do not notice that they were published immediately, do not worry.

Require Items to use the IRS Online Service Tool

If you plan to use the IRS online tool, you need to have the following information:

Your social security number.
Your date of birth.
You must verify your identity.
The IRS needs to know your marital status.
It also needs your postal address.
Your last tax return
Your email address.
Your mobile phone number in conjunction with your name on the account.
The account number of a home equity loan, a mortgage account number, a credit card in your name or a car loan.

You can use the online tool to know the amount of your payment, the balance of each fiscal year you owe; up to a year and half of your payment history if you are an individual taxpayer.

Then, once you’ve confirmed the information is correct, you can select an option to use electronic payment. Once you have paid, you must wait for one to three weeks for payments to appear in the payment history.

If I Owed The IRS, What is The Consequence?

If you owed money to the IRS and did not pay the debt, the IRS could turn your account over to a collection agency. This usually does not happen until the IRS has done everything possible to contact you. But, if you had changed your phone number, you had moved several times, and you had changed jobs in a short period, it is possible that there is an invoice that you have not been receiving.

When this happens, you can start receiving calls and letters or emails from the agency. This can happen even in cases where you would not have known that you owed money to the IRS. In some cases, a representative may initiate family and friends contacts, which could embarrass you. If an agency does not contact you, contact the IRS to verify that the account is collected. Always ensure to contact a tax lawyer to resolve tax problems because the IRS can garnish your assets.

How to Reduce Tax Debt if You Owed the IRS?

If you owe the IRS, with the help from our tax attorneys, you do not have to pay what the IRS asked for. We can help to reduce your tax debt. For the best tax debt relief options, consult with one of our tax attorneys. The consultation is FREE!

Federal Tax Lien and the Necessary Steps to Eliminate a Tax Lien.

Posted on April 18, 2018 by Mike

A federal tax lien is the legal claim of the Internal Revenue Service (IRS) on your property and assets due to delinquent tax liability. When you do not pay your taxes, the IRS can file a lien to file a claim against everything you own. A tax lien not only adheres to your current property and assets, but also to everything that may come into your estate in the future. A federal tax lien is a way the government protects its interest in your assets. If you must sell your possession, the IRS is entitled to the proceeds of your sale, up to the amount you are owed.

Understanding the Federal Tax Lien

Initially, the IRS sends notifications to the taxpayer about the non-payment of tax, informing why they incurred the debt and steps to pay it. Then, the IRS sends a final notice for payment of back taxes. When a final notice is sent to the defaulting taxpayer the intent to collect and a hearing is established. A federal tax lien is enforced if the taxpayer does not acknowledge the notices.

What Does A Tax Lien Mean For A Taxpayer?

A federal tax lien on property or assets means that the IRS has a legal claim. If the assets or properties are sold, the IRS has the initial claim over the proceeds.

Tax liens can do a lot of personal harm. The IRS files a public document called the Federal tax lien Notice (NFTL) at your local or county courthouse. This document is a public record, accessible to anyone interested in obtaining it. When a tax lien is filed, three credit bureaus are notified so the tax liens will appear on your credit report.

Since the inclusion of tax liens on your credit history are obviously considered as negative elements, it presents you as a risky borrower. This tax lien will lead to a significant reduction of your credit score and make it very challenging for you to obtain any type of financing. Increasingly, employers review the credit scores of potential applicants before hiring them.

Common Ways to Prevent a Federal Tax Liens

When taxes are paid in full, the IRS will not file a tax lien against the taxpayer. The issuance of a federal tax lien can be prevented by establishing a payment agreement in installments that satisfies the requirements of the IRS to avoid a federal tax lien filing. Also working payment options out with IRS can avoid this lien process.

A federal tax lien will not be filed by the IRS if the taxpayer makes an agreement or a simplified installment payment agreement. The installment contract of this form requires that the first-rate stability be at least $10,000 in the case of assured installment agreements or $ 25,000 or less within the case of optimized installment agreements.

The Best Way to Eliminate a Federal Tax Lien

A tax lien can be eliminated immediately if you pay your tax debt in full. Qualifying for a tax debt relief program can also help eliminate a federal tax lien. The IRS will remove a tax lien once a taxpayer meets the conditions for payment of back taxes in installments. Tax Liens can be very difficult to eliminate and it is advisable to consult a tax lawyer to resolve the tax debt and try to get the tax lien removed.

How to Handle a Federal Tax Lien If you think it’s issued by Mistake

A federal tax lien can be filed in mistake; you should promptly contact a tax professional. An agent will evaluate your tax payment history to verify that you do not have back taxes and put steps in place to remove the lien.

The release of a federal tax lien implies that the lien does not impact your house. Upon the release of a lien, county documents shall be up-to-date to mirror that the lien has been removed. Nonetheless, a federal tax withholding will stay on your credit score report for up to ten years. The liens are released within 30 days of the complete cost of exceptional tax duties or with the aid of establishing an assured or optimized cost agreement. According to the new IRS application, taxpayers are also eligible for the removal or unencumber of liens if their incredible steadiness is less than $ 25,000.

Less often, the IRS can issue a lien on federal tax if it accelerates tax collection or if it serves the best interest of government and taxpayers. The IRS automatically releases federal tax liens after the tax payment in full. The IRS usually gives out a copy of a lien release for the updates of credit scores with credit bureaus.

How a Federal Tax Lien Affects Your Credit

The filing of a tax lien negatively affects the taxpayers’ credit. Your credit ranking will doubtless undergo a strain, and you can have difficulties getting new credit score or to refinance existing credit.

Still Not Sure How to Resolve Your Federal Tax Lien? Call Us for Immediate Help

Taxpayers who need assistance dealing with tax liens and tax collections can contact us for immediate tax debt relief. Our certified tax professionals and tax attorneys can easily remove your federal tax lien and solve all your tax problems. The consultation is FREE!

Possible Ways to Get IRS Tax Debt Relief

Posted on April 18, 2018April 23, 2024 by Mike

Seeking for the best IRS tax debt relief is very important. Tax Debt can put your bank accounts, assets, and paychecks at jeopardy. Once the IRS collection process starts, the clock begins to tick and the agency begins to look for ways to collect what is owed. If you do not want your wages garnished, your assets froze, your bank wiped out clean then you must take immediate action to resolve your tax debts.

Our tax attorneys can negotiate to get you the best IRS tax debt relief if you are dealing with any of the following tax debt situations:

If you owe back taxes to the IRS or a state government
If your salary is being garnished
If you need help to face a tax lien
If you have tax penalties on your credit report and you want to resolve or negotiate

Common Consequence of Not Paying Your Taxes

If you do not pay your taxes, even if you file an extension, you will still be hooked by the application of additional interest on your tax debt. You may also be subject to severe penalties that can increase your total tax debt by up to 25 percent. However, a tax lawyer can help you reduce and minimize what you owe.

Comprehensive IRS Tax Debt Relief Plans

There are no two equal tax situations, so it is not surprising that there is a range of solutions (detailed below) that you can use to solve your problems. Depending on your income, employment status and nature of your debt, you will want to use a certain solution or combination of solutions. Fortunately, you do not have to solve it on your own. You can get the help of a tax lawyer to go through a comprehensive tax debt relief plan:

Review your financials and talk about the problems you have with your taxes.
Taylor fit the solutions you need to minimize fines and interest while helping you settle your debts as quickly as possible.
Installment agreements (IA): a tax payment plan
Build a tax repayment plan

If you owe money to the IRS for back taxes, you do not necessarily have to repay everything you owe at once. Learn how you can set up a monthly payment plan with the IRS that allows you to pay your tax debt over time. With the right plan, you can develop a working strategy to pay your tax debt, so you can regain control. A Tax Attorney can even set up partial payments to the IRS in lieu of the full amount.

IRS Tax debt relief Options and Solutions

The IRS usually accepts payment concessions for back taxes. Here are some useful tips for creating payment plans, requesting payments in installments that you can afford, which gives you total through a compromise offer or discharge through the bankruptcy of your tax debt.

Applying for a Payment plan

The structuring of a monthly payment plan with the IRS is pretty straight forward. A tax debt attorney can establish a payment agreement on a tax payer’s behalf. This is typically accomplished either by phone or by filling out some paperwork. Note: The IRS will always refer to a “monthly payment plan” by calling it a payment agreement.

Here are some tips that will help you save time when applying for a payment plan with the state and IRS:

Before applying for a payment plan, you must file all your tax returns.
You must declare all your fixed and liquid assets to the IRS.
You mustn’t have enough good credit rating to apply for loans that will suffice for the payment of your IRS tax debt.

Do You Need to Repay Everything You Owed?

Depending on how much you owe and your financial situation, it may not be realistic to think that you can repay everything you owe. If you are facing serious problems with the tax debt, then ask a tax lawyer to make an offer in compromise (OIC), could help you settle your debt with the IRS for a small amount so you can resolve your debt for less. Our goal is to set up something you and the IRS can live with.

Qualifying for the Currently Not Collectible (CNC)

If you are facing a difficult financial situation with your tax debt it can put your other financial obligations in a major financial hardship i.e paying your mortgage, rent or just flat out putting food on the table. If you are already facing financial difficulties and are living from paycheck to paycheck, a situation of Currently Not Collectible (CNC) could help you postpone the refund to the IRS until you can pay what you owe. Our experienced tax professionals will help guide you through tax relief options. Call us today don’t wait any longer.

State Tax Levy – Everything You Need to Know to Stop a Tax Levy

Posted on April 18, 2018 by Mike

A state tax levy is a collection method that tax authorities use. A tax levy itself is a legal means of seizing taxpayer assets in lieu of previous taxes owed. A tax levy is not the same as a tax lien. A tax lien is a claim on what you own but a levy goes a step further to seize these assets. The tax levy can be placed on your bank accounts, wages, social security, investment accounts, and your physical properties.

State Tax Levy Process

The state authorities and the IRS are required to go through some appropriate steps before implementing a levy. This ensures that a taxpayer is properly informed of his tax debts and the levy that will be implemented if it is not paid.

For starters, the IRS will assess the tax amount you owe. This is done when you file a tax return stating the money you owe or the IRS will do so for you. This is called a substitute for return (SFR).

The next step is the sending of a tax bill to your most recent address. The bill will demand the payment for the taxes you owe.

If you don’t pay the tax bill or make an arrangement to pay with time then the IRS will send a Final Notice of Intent to Levy and Notice of Your Right to A Hearing. 30 days after notifying the taxpayer of intent to levy, the IRS or state authorities can then go ahead and begin the seizure of assets.

Types of State Tax Levy

There are various types of tax levies that apply to different taxpayers. The state authorities usually go for the method that’s easiest to seize your assets.

State Tax Levy on Bank Account (Bank Levy): The IRS will get in touch with your bank and ask them to freeze funds in your bank account for the time being. 21 days after this they will remove the amount you owe from your bank account funds if they are enough to cover. If your funds are not enough to cover your debt the IRS will be entitled to future funds you put into that bank account and will deduct them as they enter.
State Property Tax Levy: This involves the seizure of your property and physical assets so the IRS can sell them to cover your tax debt. They are entitled to seize and sell anything from your cars to your house(s), boats, furniture and more.
State Tax Levy on Wages: In wage garnishment, the IRS will reach an agreement with your employer to put a tax levy on your wages to deduct a certain amount or percentage from your wages to pay your tax debt. Employers can be held liable for the debt if they refuse to heed to the IRS demands. The levy will continue until the tax and other fees are paid in full or the statute of limitations on the debt expires.
State Tax Levy 1099: This is a form of state levy that is issued in some states that entitled the IRS to levy your 1099 payments. The state authorities can levy every amount you are owed currently but cannot touch any future payments you will get.
Passport seizures: If you owe $50,000 or more, the IRS can ask the state department to revoke your passport. This is, however, a rare type of levy.
Seizure of other assets: The IRS is also entitled to seize assets like life insurance, dividends, retirement accounts, commissions, and more.

How to Stop a State Tax Levy?

A state tax levy is the last course of action the IRS or state authorities will take but it is the harshest. To stop a state tax levy, you will need to act quickly. The first step is to get a tax attorney or a tax lawyer to arrange a tax debt relief for you. Don’t try to handle a tax levy on your own. Tax professionals have a higher success rate to negotiate with the IRS and make an arrangement to stop the tax levy. Some possible arrangement options include:

Starting a payment plan: there are payment plans state taxing authorities offer. You can choose a plan to suit your current financial situation. Once you start a payment plan, the IRS will stop the levy.
Submit a counteroffer: Your tax lawyer can submit an offer in compromise to the IRS. This offer will request that you pay less than the amount you owe in taxes. This option is available only to individuals that are financially challenged. Get in touch with a tax professional to determine if you qualify for this option.
Provide evidence of financial difficulties: If you can prove to the IRS that you are truly financially incapable of paying your taxes, the levy could be halted temporarily. This is especially applicable to wage garnishment. If your tax attorney can provide evidence of financial difficulties to the IRS, the amount can be lowered or canceled. Eventually, however, you will have to find a way to resolve the taxes you owe.
File an appeal: You can file an appeal on a levy for several reasons:
- You applied for bankruptcy before the levy was issued.
- The statute of limitations on the debt is expired.
- You paid all your tax debt before the notice was sent.
- There were errors in the procedure during the assessment of your taxes.
- You did not get the chance to discuss your liability.
- Other reasons include spousal defense and discussing other collection methods.

Not Sure What to Do to Stop Your State Tax Levy? Call Us Now!

Talk to our state tax levy attorneys today and explore the best option for your tax levy. Call now to resolve your state tax levy. The consultation is FREE!

How to File Back Taxes and How to Resolve the Problem

Posted on April 6, 2018 by Mike

The Internal Revenue Service (IRS) requires that you file a tax return each year that your income is greater than your standard deduction. In other words, if you are generated income or revenue you need to file a tax return with IRS. Many taxpayers do not comply with filing a return even when it is necessary. Here is how to file back taxes.

General Steps on How to File Back Taxes

Step 1: Gather Information about Income

Get the details of your income for the time you are required to present. You will need your previous W-2 and 1099(’s) for those years. You can ask the IRS for an alternative by filing an IRS Form 4852 if you are unable to get W-2 from your company and you need it.

If you deal with capital assets during the period, you also have to declare this income. However, if you aim at stopping accrued interest and fines, prior to getting a copy of your Form W-2 or 1099, you can make a payment of tax after estimating your income.

Step 2: Determine Deductions and Exemptions

Decrease your tax account with exemptions and deductions. Simply because you are filing your return overdue does not mean you will lose the deductions and exemptions you may have taken. If you aim at itemizing your deductions, you are required to get documents that will help you with that.

You can claim the standard deductions for the period if you don’t have the necessary documentation. You can also reduce your tax base with exemptions for dependents that you were eligible to claim in previous years.

Step 3: Obtain the Appropriate Tax Forms

Get the correct forms and instructions for the specific years in question. Your overdue statements must be submitted on the original tax forms. You can access tax forms from previous years by contacting the IRS. Do not make the mistake of using tax forms of current years or you may end up making the return statement again.

Step 4: Complete the Tax Forms

Fill out the necessary forms according to the instructions on those forms. Since tax laws change from year to year, it is important that you use the corresponding instructions for the fiscal year for which you file a return. Apart from the confusion, it will cause, following the wrong instructions can cause you to pay more or less the amount of taxes you owe.

Step 5: Submit Your Tax Return

Send in your tax return, and all documentation to the address indicated on the instructions. Sending your statement to the wrong address can delay the time it takes for the IRS to process it. To get results easier and faster, you can complete your previous year’s statement using a tax e-file software.

Advice from Tax Attorneys

Make sure you make a copy of all the documents you send to the IRS. Documents are lost from time to time, and you may need a backup copy in case you are audited. It is important to contact a tax attorney for legal advice on how to file back taxes.

What You Should Do If You Can’t Afford To Pay the Back Taxes

If you owe taxes but cannot pay the IRS, consider filing Form 9465 (Installment Agreement Request) with your tax return to request an installment payment plan. In certain situations, the IRS cannot deny a request for installment payment if you owe less than $10,000. That said, you must pay for everything you can when you file your tax return. Even if they approve your payment request in installments, you will be charged interest and penalties for late payment of taxes that are unpaid at the due date. You can avoid notices and other IRS collection actions. A Federal Tax Debt Lien could be issued so make sure you are proactive. If you do not know how to file back taxes you should speak to our tax specialist for immediate help.

Other Alternative for Back Tax Taxpayers

If you owe back taxes, here are a few tax debt relief programs that you can apply:

The plan installment payment (Installment Agreement) is available for people who cannot pay their total tax debt at once. This program allows people to pay small monthly payments until they finish paying all the debt.
Under the Fresh Start initiative, the IRS raised the limit amount of tax debts for simplified installment payment plans from $25,000 to $50,000 and extended the repayment period from five to six years. Taxpayers who owe less than $50,000 can submit their application on the IRS website and do not have to complete the Collection Information Declaration (form 433-A, form 433-B, or form 433-F ) of the IRS.
A transaction offer (Offer in Compromise or OIC) allows taxpayers to permanently resolve their tax debt by paying less than the amount owed. The offer in transaction or OIC is an important tool to help people, but only applies in limited circumstances; this is an option that is available only to those taxpayers who have exhausted the other payment options.
The IRS extended the offer of transaction offering to help more taxpayers with payment problems under its Fresh Start initiative. Nevertheless, the IRS is going to reject any present of this type if it considers that the taxpayer can pay his debt or using an installment payment plan or as a lump sum.

Still need help? Talk to our tax lawyers today. We solve back tax problems!

How to Resolve a Delinquent Tax Return

Posted on March 29, 2018 by Mike

Delinquent tax return also referred to as late tax return refers to a tax that is unpaid after the payment due date which in order words might mean a late in filling or payment of tax. In the eyes of IRS and federal government a delinquent tax return is defined as income tax return having a US mail postmark after April 15^th or the latest tax filing due date, if an extension was granted, a delinquent income tax return is defined as an income tax return with a US mail postmark after due date of that extension. Usually, a penalty is attached to a delinquent tax. The power, jurisdiction, and authority to collect all delinquent taxes is vested in a state tax commission. Internal revenue service (IRS) policies stated that the enforcement period for delinquent return and filling requirements is not to be more than six years.

However, the extent to which delinquent procedure will enforce will depend upon the facts and circumstances of each case and by reference to factors ensuring evenhanded administration of staffing and other IRS resources. The IRS prepares the return based on the information it has from employers, banks, financial institutions and other payers of the person involved. The IRS does not take kindly to people who do not pay their taxes on time and the same holds for people who do not file a return.

What If You Don’t Response to a Delinquent Tax Return?

No matter how overdue your returns are and no matter what your excuses may be, you must file your taxes. If you don’t file a required tax return by the due date the internal revenue service (IRS) will charge you a 5% per month penalty for failing to file. If you owe taxes on the return, you will be charged a 0.5% per month failure to pay penalty. interest will also accrue on any unpaid balance from the day the return was due until the date you will pay the tax in full. The IRS Can also file a return for you called a substitute for return (SFR). So if you have a refund date, you must file your tax return within three years of the due date of the return or you will lose your refund.

Ways to Resolve a Delinquent Tax Return

The IRS can be very intimating in most cases as on receiving notice from them will raise anyone’s blood pressure. To understand how to deal with it, it is important to understand some steps to be followed to get some tax debt relief. The very important and first step to take is to get help from a licensed tax professional which could be a tax lawyer or a tax attorney, they are pros in this field and know the tax law. They can provide you with tax debt relief which can save you from the intimidation of IRS which can make you start thinking you have no choice than to pay the amount of your tax immediately on receiving their notice.

Also consulting with a tax lawyer might make you understand your rights and options and will make you realize you can file your taxes even if you can’t pay at the moment. This will potentially save you from IRS collection or the IRS filing your taxes for you. As said by Zimmelman, the owner of Westwood tax and consulting, a New York-based accounting firm, “The penalty for late filing is 5 percent of the unpaid taxes for each month that the tax return is late.” Your tax attorney might assist you in requesting an extension of time and can also assist you in setting up an installment agreement with the IRS. With the help of your tax attorney, the IRS may set up an installment agreement for you if your combined tax penalties and interest is less than a fixed amount of money. Making an offer in compromise can also be a tax debt relief to save you of the challenge of the delinquent tax return. Zimmerman also said, “if you can prove that you cannot afford to pay the taxes, the internal revenue service might be willing to compromise and reduce your balance”. An important aspect that must not be left out is frequent communication and record-keeping which is also important in dealing with the delinquent tax return. This can be streamlined if a tax debt relief professional is on your side.

Resolve Delinquent Tax Return is Very Important

It is very important to deal directly with a tax attorney to help you until you get the delinquent tax return issue resolved to avoid possible consequences such as potential loss of tax credit as if you qualify for. One must also be aware that if you fail to file a return, the Internal Revenue Service could start some serious collection activities which typically includes tax liens, wage garnishment, bank levies, cooperate responsible person assessment, license and permit revocations, referrals to a private collection agency and other types of property seizures. If you need help, don’t hesitate to contact us today. The consultation is FREE!

Top 5 Ways You Can Use to Stop IRS garnishment

Posted on March 22, 2018 by Mike

Stop IRS garnishment especially if you are unaware of IRS practices it could be quite confusing. IRS garnishment involves the IRS taking a part of your paycheck to collect for your unpaid taxes. This practice does not just happen nor does it come as a surprise from them. This option takes them time after many failed attempts to recover your unpaid taxes from you. In fact, it is the last option in the tax collection process by the IRS. But if you hire the right Tax Attorney, you can stop or end wage garnishment.

The truth is; the IRS will take a part of your wage if you owe them unpaid taxes. This comes as a last resort after several letters have been sent to you. In this situation, they will submit the garnishment request to your employer for the collection of your wages. Understand that your employer cannot reject this move by the IRS. If they do, they become liable for your debt. So, if you want a Tax Debt Relief from the IRS, you must understand how to stop IRS garnishment. Unlike other creditors, the IRS does not require a court judgment for wage garnishment. So, having a good Tax Lawyer to help you fight with the IRS is very critical.

The Amount of Your Wage That the IRS Can Garnish

Unlike other creditors, the limit varies on the exact amount IRS can garnish. There is a specific tax code that determines how much the IRS can leave you with. The truth is; wage garnishment can take more than 70% of your income. So, you must take the necessary steps to stop this action that could leave you with little to survive.

How You Can Stop IRS Garnishment

There are many ways that will help you to resolve your issues with the IRS. To do this, you must get a clear understanding as to what the exact issue is with the IRS. To achieve this, you must get compliant with IRS requirements. One of the most common mistakes is not filing your taxes. The second reason for the IRS collection activity would be a lack of repayment towards your debt or liability. When looking for a resolution a well-experienced Tax Attorney can help you reduce tax debt. Here are a few ways you can stop a wage garnishment by the IRS.

1. Apply for an Installment agreement

You can stop IRS garnishment if you agree to installment payment with them. Here, your Tax Attorney or Tax Lawyer can help work with the IRS to map out a payment plan. Installment Agreements will see that you pay off your unpaid taxes over time. This is a payment plan that spreads around each month over a specific period of time. As long as you commit to your installment agreement, you will chip away at your Tax Debt

2. Opt For the Offer in Compromise Program of The IRS

You can settle your unpaid taxes for an amount less than what you owe. This can happen if you apply for the Offer in Compromise Program or OIC. This program permits you to settle your unpaid tax for less than what you owe the IRS. To qualify for this program, you must meet certain acceptable guidelines set by the IRS. Not everyone who submits an OIC will qualify for this program. The truth is; once you submit a proposal, the IRS will halt the collection process. This is necessary to ensure better negotiations between you and the IRS. This will give you room to pursue other programs to stop IRS garnishment if negotiation fails. So, allow a competent Tax Attorney or lawyer to guide you through this process for an optimum result. The goal here is to give you a fresh clean start.

3. Prove and Plead Poverty

The IRS might let you off the hook if you can prove that garnishment will cause you financial hardship. If you can prove this, chances are they will let you off until your financial status improves. They will let you once you can prove your inability to meet up with basic living expenses. In fact, although this is temporal it can help you a long way while you look at other options. You need a competent Tax Attorney to help you file for hardship status. Tax Attorneys know and understand the formulas that can help you stop wage garnishment.

4. Hire a Competent Tax Lawyer (The Most Optimum Option)

The IRS tax problems, as well as the federal laws on tax regulations, are very complex. So, the best option to stop IRS garnishment is to hire a competent Tax Attorney for tax debt relief. A competent Tax Attorney has the knowledge, and the skills required to stop IRS garnishment. The truth is; a competent Tax Attorney can help you reduce a good tax debt amount and provides the best Tax Debt Relief. More so, the Tax Attorney becomes your representative for any IRS tax problems. Thus, this will reduce any form of harassment from the IRS.

5. Quit your job

When you quit your job, you are not entitled to a paycheck. Thus, the IRS cannot garnish your wage. This is a severe step that gives you the opportunity for better negotiation with the IRS. Although this will help stop IRS garnishment for a short period and the result is only temporary. The IRS will definitely find your new employer and thereafter initiate another wage garnishment.

Los Angeles Tax Lawyer for Tax Debt

Posted on August 6, 2017April 23, 2024 by Mike

The best way to get your tax problem resolve in Los Angeles is to hire a Los Angeles tax lawyer to represent you and have the tax lawyer negotiate with the IRS on your behalf. Our Los Angeles tax attorneys have years of professional experience with taxation law and IRS loopholes that can get you out of tax trouble. For immediate state or IRS tax debt relief, call now to speak with a Los Angeles tax lawyer.

Los Angeles Tax Lawyer that You can Trust

Here at Legal Tax Defense, our team of qualified Los Angeles tax lawyers handles and settles all matters pertaining to the State of California Franchise Tax Board(FTB) & Internal Revenue Service (IRS). We are a reputable Los Angeles Tax Lawyer team with experienced knowledge in resolving tax liabilities with the IRS. Our Los Angeles tax lawyers are extremely dedicated and will work aggressively on your behalf to solve every tax-related issue regardless of the circumstances.

What Our Los Angeles Tax Lawyer Can Do for You

We offer a broad range of tax debt relief services to suit our client’s needs such as

Stop Wage Garnishments – Sometimes when the IRS or a State fails to collect back taxes, they will begin a ‘levy’ process to reclaim assets and anything of value from the individual concerned. Wage garnishment is a form of the tax levy to seize your paychecks, collecting a percentage or all, in an effort to collect what is owed. Wage garnishment can be very stressful for an individual or business and often become so severe that they are unable to afford necessities. The only way to prevent or stop a wage garnishment is to come up with a tax resolution plan. Our Tax Lawyer in Los Angles will work quickly to help prevent or stop your money from being garnished or levied by the IRS.

Stop IRS Levies – Are you receiving collection letters from the IRS? It’s important that you get help from our qualified Los Angeles tax lawyer immediately so your assets can be protected. Don’t wait until levies have been placed against your assets and your property is seized by the IRS.

Offer in Compromise – Sometimes due to financial hardship situations, a taxpayer may not be able to make payments towards their tax debt. In these circumstances depending on guidelines, the IRS allows taxpayers to settle for pennies on the dollar. Let our Los Angeles tax lawyers analyze your case and determine if this program is best for you.

Remove Tax Penalties – Every year the IRS issues millions of dollars of penalties against taxpayers. The IRS also abates several of those penalties as well. What most taxpayers don’t know is, they can contest a penalty and if they present a good enough case can have their penalty abated. Here at Legal Tax Defense, we understand your rights to contest penalties issued by the IRS. Our Los Angeles tax lawyer can help you remove tax penalties from overdue and unpaid tax debts.

Remove IRS Tax Liens – A tax lien is a document filed against you when you refuse or neglect to pay your tax debts or even go above a certain tax debt amount. It gives the federal government a legal claim over your properties and ensures that their interests are protected. The best way to release a tax lien is to pay your debts in full. If this isn’t possible, there are several alternative ways to release or subordinate a tax lien. Our Los Angeles tax lawyer handles the release of your tax lien by negotiating something that works for you and the IRS.

Tax Audit Representation – If you or your company is facing a tax audit, then you will need immediate assistance and representation. Our experienced Los Angeles Tax Lawyer will help you develop a strategy, handle all the paperwork, as well as attend meetings and correspond on your behalf during a state or IRS tax audit.

Prevent or Stop Bank Levies – Aside from wage garnishment, the IRS can also seize your bank accounts as a form of the levy so they can withdraw the amount owed from your account. Without noticing this IRS or State collection tactic can put you in a major financial hardship. Our Los Angeles tax lawyer can help you protect your bank accounts, personal property and other assets from the IRS. You have to act now, a bank levy can only be reversed if you act quickly.

Late Tax Return Filing – Our Los Angeles tax lawyer can also help file a late or outstanding tax return. If you fail to file on time you are subject to having the IRS force file for you. The IRS calls this a substitute for return. If the IRS has already filed for you we can amend these years possibly lower your tax debt also getting you compliant with IRS filing requirements.

Why You Should Work With Our Los Angeles Tax Lawyers?

Tax liabilities are a very serious matter, and they can be devastating consequences if you procrastinate. In some cases, individuals have ended up losing their financial assets, cars, and even homes. In some cases, individuals are even arrested. As such you can’t afford to hire just any IRS tax attorney, but rather a qualified team with vast knowledge and experience of California and Federal taxation law.

California has one of the most aggressive tax collection efforts in the nation. It also has the third-highest income tax rate and higher property tax than before Proposition 13 was passed. You need a Los Angeles tax debt lawyer who understands every aspect of Tax Law and protects your best interests.

No matter what your tax situation is, we will find the best possible avenue of tax resolution for your IRS problems. Ignoring your tax debt will only compound the problem, and handling it yourself offers only a slim chance of success. This is why you need a qualified tax lawyer for tax debt relief to explore all your potential options coming up with the best plan of action. If you want the best and most aggressive in the business on your side, Legal tax defense is here to help!

Call Now to Talk to be Connected to a Los Angeles Tax Lawyer

Do you have a tax problem? Call us today for a free case evaluation for tax debt relief options to solve your tax problem. Our tax lawyer in Los Angeles will analyze your situation and present you with the best possible tax defense options. Our Los Angeles Tax Lawyers will protect your assets and protect you from the harassment and communicate with the IRS directly on your behalf. Our goal is to come up with a strategic tax resolution plan giving you a fresh clean start again. Call us today for immediate tax relief help. The Consultation is FREE!