FAQ: 3 Basic Tax Debt Facts

Understanding the basics about tax debt can be extremely helpful if you are battling the IRS. Our Los Angeles tax attorneys answer some of the most common questions about tax debt to help gain control of your situation. If you have additional questions about overcoming tax debt, our team at The Blue Law Group is available to help you identify your tax debt relief options.

Contact our Rancho Cucamonga tax attorneys today at (909) 766-9996 to schedule a consultation!

#1: What Should I Do If I Can’t Pay Back My Taxes?

If you can’t pay back your taxes, there are options available to help you. Two common options are installment agreements and offer in compromise. An installment agreement is when the IRS lets you pay off your tax debt in monthly installments with up to ten percent in interest applied to each year of debt. An attorney can help you negotiate with the IRS to obtain a favorable agreement.

An offer in compromise is when you negotiate with the IRS to pay a lesser amount to satisfy your outstanding tax debt. To qualify, you will need to demonstrate that paying back the full amount of your tax debt is an undue hardship to your financial situation.

#2: What Reasons Would the IRS Have for Auditing Me?

In most cases, IRS audits arise from mathematical errors, claiming numerous charitable operations, or claiming several businesses. An audit could also arise if the IRS believes that you only reported a portion of your income. If you were notified of an IRS audit, you need an experienced tax attorney on your side.

#3: What Is a Bank Levy?

The IRS may use a bank levy to garnish unpaid debt. They will freeze your bank account to take some of the money from our account. Once the bank receives a notification of a levy, they will freeze your account for up to 21 days.

If you are dealing with overwhelming tax debt, let our Los Angeles tax attorneys help you! Contact us today at (909) 766-9996!