Doing taxes can be highly complex and time-consuming. People sometimes have the added stress of tax debt they currently cannot pay, too. Here's where tax debt relief comes in handy. With the help of a qualified tax lawyer, you can receive tax debt relief through specific government programs.
This article will discuss tax debt and tax debt relief, particularly in the state of California. Small businesses and startups need to learn more about tax debt relief and how it may help relieve stress.
What Is Tax Debt Relief
Understanding taxes and how they work in any state is a challenging process, and California is no different. This section will take a look at the basics.
First, what does one consider tax debt? Essentially, it refers to unpaid tax payment after the filing deadline in any capacity. Further, doing so and not paying your taxes can be very stressful. Eventually, the IRS can issue claims on your personal property, and before that, they will give penalties based on your debt.
For taxpayers who cannot pay their taxes, they can make an offer on their tax debt. There is an Offer In Compromise program that enables you to spend less of your liability.
The Offer in Compromise (OIC) program
The Offer In Compromise program provides tax debt relief, depending on acceptance. Although it can help to alleviate financial stress, it is challenging to secure. There are different eligibility requirements for the program, which rely significantly on various factors, such as your ability to pay your debt, current and future expenses, income, and the overall value of your assets.
Before applying to this program, there are requirements that you must meet. For example, you must have already looked at payment options, including setting up a payment plan, and you must have already had the necessary tax returns filed.
What Is A Tax Lawyer And What Do They Do?
Receiving tax debt relief in California can be pretty complex. As a result, consulting a trustworthy and credible tax lawyer can be very beneficial. This section will cover tax lawyers and why it might be helpful for you and your business to consult a reasonable tax attorney for your requirements and have them represent you for an IRS OIC.
Tax Lawyers In Detail
Several tax attorneys within the state of California are fully capable of representing you for an IRS OIC. With a qualified tax lawyer, you can get plenty of relief from having tax debt that you cannot pay.
However, deciding on a tax lawyer to consult may be stressful in itself. Therefore there are plenty of ways to determine whether a specific tax attorney is suitable. For example, the tax lawyer that you consult must be very transparent. Transparency means they are clear about how they intend to help and outline all factors, like processes, fees, and more.
If a tax lawyer is transparent, it means that they are trustworthy and dependable. Such lawyers are highly capable of helping you secure the difficult-to-secure OIC with minimal hassle.
Benefits Of Hiring A Tax Lawyer
There are multiple benefits to hiring a tax lawyer to represent you for an OIC in California. For example, not paying your taxes can lead to penalties, interest, legal action, and more. So, you can save yourself from all that stress and financial cost in the first place with a reliable tax lawyer.
Although securing an Offer In Compromise is notoriously challenging, a tax lawyer enables potentially obtaining it much more manageable. Further, this results in less stress and more peace of mind during the application process.
The IRS can be pretty strict when it comes to choosing whether they accept an OIC or not. They have specific requirements and formulas to make such an important decision. Therefore, consulting a tax lawyer enables you to negotiate and settle your debt to the lowest amount. As a result, you can pay less in taxes and won't have to face significant repercussions.
In conclusion, while it may be pretty tricky to receive tax debt relief, it is very doable and can yield very positive results. If you cannot pay the total amount of your taxes, you can consult a trustworthy tax lawyer. By doing so, you can relieve some of your financial challenges and yourself from additional financial stress. However, remember to choose a credible and highly dependable lawyer.