Looking for Debt Settlement in California? Don’t Know Where to Turn? Trust the Experts at Sheppard Law Offices to Help You Get the Settlement You Deserve!
How Does IRS Debt Settlement Work in California?
To settle your IRS debt in California, you have a few different routes that you can take. You can negotiate with the IRS or make a payment plan with them.
How to Negotiate with the IRS?
Are you looking to settle your back taxes with the IRS? The first step is to try and negotiate with the IRS directly or have a tax attorney to speak, on your behalf, to the IRS.
The follow steps are to explain how a negotiation works when you owe back taxes to the IRS:
- Know the tax laws: Learn about tax settlement laws for California. Hire a trusted tax lawyer that knows the laws for your state and are updated with the yearly changes for the tax laws.
- Notify the IRS: Talk to the IRS and advise them that you want to settle your back taxes.
- State your reason for back tax settlement: Have a legit reason why the IRS should accept your case and issue you tax settlement. This can give you a better chance to get your proposal accepted.
- Make an Offer to settle: Save a lump sum of money to give the IRS, which will help with your negotiation.
- Purpose a payment plan: If your unable to make a large lump sum as your first payment, then work on a payment plan with the IRS, this will allow you to make affordable monthly payments, to pay off your back taxes in full.
- Check with the IRS to make sure your back taxes are noted as “settled” on your account: After your payment plan is paid off, make sure the IRS reports your accounts as “paid” or “settled”.
How can a California Tax Attorney Help You?
If you feel you don’t know much about negotiating with the IRS, then you should hire a professional tax attorney that can speak on your behalf to the IRS in California.
When hiring a tax attorney to deal with your back taxes settlement with the IRS, they will work on you tax issues in the following ways:
- Your attorney will consider what your able to pay per month, and work on which settlement process will work best in your case.
- Your attorney will work with the IRS and creditors to make sure they stop calling you about your back taxes.
- Your tax attorney will purpose a payment plan with the IRS and set up a monthly payment plan.
- Your attorney will advise you on how much you should save, to make a reasonable settlement negotiation with the IRS.
- If your unable to pay the full amount in one payment your tax attorney will talk to the IRS on your behalf to work on a reasonable payment plan arrangement.
What Are the Benefits of a California Debt Settlement?
A California IRS settlement agreement, can give you the following benefits:
- help you avoid bankruptcy
- Stops calls from creditors
- Improve your credit score
- Give you time to save to pay in full
Is my Tax Settlement Taxable?
Yes. Debt settlement is taxable with the IRS. Any forgiven amount is considered taxable.
At the end of your settlement, you need to report your forgiven amount to the IRS by sending them the 1099C form to report the amount on your Federal tax return.
If you’re not sent the 1099C form, make sure that the IRS knows about the amount that was forgiven and report it on your tax return.
8 Ways to Settle Your IRS Tax Debt
- Installment Agreement.
- Partial payment installment agreement.
- Offer in Compromise.
- Not currently collectible.
- Release Wage Garnishments.
- Stop the IRS from Levying Your Bank Account
- Innocent Spouse Relief.
- Pay Attention to the Expiration of the Statue of Limitations
Hire a California Tax Attorney
If your struggling with IRS problems and don’t know what direction to go in next you should contact the tax attorneys at Sheppard Law Offices . We can help you strategize what the best way is to settle your back taxes. We specialize in California tax laws and can get you a fresh start.