Tax Collection Representation
We provide comprehensive help for clients who owe taxes they are not able to pay including assistance with all of the various IRS and State tax programs available as well as helping clients get rid of taxes in bankruptcy. IRS and State programs include monthly installment agreements, hardship deferrals on collection (an agreement to temporarily suspend collection) and offers in compromise (the IRS agrees to "settle" the tax debt for less than the amount owed.) Bankruptcy can be an attractive option for Clients who either do not qualify for any of the administrative programs or who have other financial difficulties.
The IRS currently relies on many elements from the "disposable monthly income" calculations used in Bankruptcy Court in determining how much and how quickly it will require a taxpayer to pay. Although the standards for these programs have been recently relaxed, the lack of adequate customer service personnel and resources at the IRS can make it very difficult to get your case heard unless you are intimately familiar with the internal procedures and the administrative appeal system within the IRS.
We are typically able to resolve nearly all collection cases at the administrative level but litigation and the threat of litigation are occasionally needed to obtain a fair resolution. One of the biggest problems taxpayers who owe taxes will face is a set of "monthly expense" standards which in no way reflects the actual costs of living in the Bay Area. Revenue agents will routinely advise taxpayers that owe taxes that they should move to lower their rent, sell their house, liquidate retirement assets, etc. in order to pay their taxes. Before you rip your children out of their school system, sell your house and/or liquidate your retirement assets, give us a call as their may be much better options for you.