Tax Law Los Angeles
Many Americans are afraid of the IRS, because they have the power to destroy their lives as well as their livelihoods. Many people have to deal with Los Angeles tax debt, and this has caused a great deal of anxiety for the American taxpayer. The stress level has reached astronomical proportions for many people, especially after the Great Recession.
Fortunately, the IRS is not as callous as many people think. In fact, they have rolled out a series of initiatives that can help taxpayers get back on their feet.
An Offer in Compromise allows the taxpayer to settle their debt for less than what they owe. It can be a good option for someone who can’t pay all their Los Angeles tax debt, especially if it could cause extreme financial hardship.
The IRS has four main considerations that can determine a taxpayer’s eligibility:
It’s important to go through a pre-qualification process before you apply for this program. To be eligible, you must:
Be sure to use the IRS’ Pre-Qualifier Tool to see if you’re eligible. Once you qualify, you need to follow the instructions on how to apply, which is in the Offer in Compromise Booklet (Form 656-B). Your completed form will include:
Once you have submitted a form, you’ll have to select a payment method. Acceptable forms of payment include:
If you qualify for the Low-Income Certification, you will not have to pay an application fee or a first payment, but you will have to make monthly payments while they consider your offer.
To decide if an Offer in Compromise is right for you, you need to understand the process. While your offer is being evaluated:
An Offer in Compromise will be automatically granted if the IRS does not make a determination within two years of when the taxes are due.
With so many Americans dealing with hard times, there has been an increasing demand for tax debt resolution services. But not all of them are legitimate.
Some warning signs of a questionable tax debt resolution company include:
Some of the other warning signs include:
If you believe that the company you’re working with is questionable, you can report any problems to the IRS by filling out Form 14157 (Complaint: Tax Return Preparer).
Whether you decide to file for an Offer in Compromise, petition the IRS directly, or work with a tax debt resolution company, make sure you:
You have a few options for tax debt resolution, which are:
Are you still not sure which option is right for you? Or do you just want someone in your corner while dealing with Los Angeles tax debt?
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