If you have significant tax debt that only grows with interest and penalties you should explore your tax resolution options to stop collection activities, interest, and perhaps get out of tax debt for less than you owe. Sacramento Law Group LLP tax attorney Jin Kim helps people and businesses resolve their tax debt for a flat fee. Using tax resolution strategies such as not collectible status to cease IRS collections, offers in compromise to settle tax debt for less than the amount owed, and installment plans to extend repayment, Jin Kim has helped many clients eliminate federal and California tax liabilities. To learn more about your tax resolution options call attorney Jin Kim at (916) 299-9913 for a free consultation.
Tax attorney Jin Kim accepts flat fees for most tax resolution cases. By charging a flat fee every client can know exactly what their tax case will cost. To receive a free quote for resolving your tax case call our office (916) 299-9913 for a free consultation.
About Jin Kim
Attorney Jin Kim represents individuals and businesses in our tax resolution and cannabis taxation practice. She helps individuals and businesses gain relief from IRS garnishment and levy, secure currently not collectible status, draft offers in compromise, and obtain installment agreements with the IRS and California tax agencies. In addition, she represents clients under audit by the IRS, FTB, and CDTFA.
IRS Tax Resolution
Even a nominal amount of federal tax debt to the Internal Revenue Service can quickly balloon to an unmanageable amount with interest and penalties. However, when IRS tax debt grows to an amount you cannot repay, consider legal tax resolution options to minimize or extend your tax liability.
Currently Not Collectible Status
One of the most affordable tax resolution options for indigent taxpayers is securing currently not collectible (CNC) status with the IRS. To start, your tax attorney will file a Collection Information Statement to evidence your inability to pay your existing federal tax obligations. If approved, your CNC status will cease IRS collection actions such as wage garnishments and levies, giving you breathing room from the IRS collection process. In addition, the 10-year statute of limitations will continue to run while you’re in CNC status. If after 10 years the IRS cannot collect the tax debt, even though you were in CNC status, the tax debt will expire.
Offers in Compromise
One of the most well-known IRS tax resolution strategies, but least well understood, is the offer in compromise. When unrepresented individuals file for offers in compromise they rarely get approved; usually because the proposed offer does not align with the Reasonable Collection Potential. Moreover, offers in compromise require an upfront payment if proposing a lump sum, or ongoing monthly payments during the offer investigation period. Accordingly, successful offers in compromise usually require a skilled tax attorney who not only ensures that your fact patters qualify for an offer in compromise, but who can prepare a viable application.
Offers in compromise are made when there is doubt as to the IRS’s ability to collect the full tax debt from the taxpayer’s income and assets during the 10-year statute of limitation. When the taxpayer has assets, financial accounts, income, or future income that can satisfy the tax obligation during the collection period, the IRS is unlikely to accept an offer in compromise.
The amount of the offer is not simply a percentage of the amount owed or principal amount minus interest and penalties. Rather, the amount of the offer must equal the Reasonable Collection Potential – that is, the offer must equal what the IRS can reasonably collect during the collection period. That amount generally tracks the taxpayer’s equity in assets plus future monthly disposable income.
Some taxpayers do not qualify for an offer in compromise or not collectible status, but they also can’t afford to be garnished or levied. To remove the threat of IRS collections these clients may choose to secure an installment plan with the IRS. Through an installment plan, the tax debt is repaid over a series of years, much like a chapter 13 bankruptcy.