Owing back taxes to the IRS or state FTB, EDD, CDTFA can be overwhelming and stressful. It’s not uncommon for individuals and businesses to fall behind on their taxes due to various reasons, such as financial hardship or a lack of understanding of tax laws. However, ignoring the problem can lead to serious consequences, including wage garnishment, bank levies, and even seizing assets.
If you’re in this situation, it’s essential to seek professional help to resolve your back taxes. A tax professional (EA, CPA, Lawyer) can help you navigate the process, negotiate with the IRS or state on your behalf, and help you get back on track.
Here are some key things you need to know about resolving IRS and state FTB, EDD, CDTFA back taxes with professional help:
Understanding Your Options
When it comes to resolving back taxes, there are several options available, depending on your situation:
Installment Agreements: An installment agreement is an agreement between you and the IRS or state to pay your tax debt in monthly installments. This can be a great option if you’re unable to pay your tax debt in full but can afford to make regular payments over time.
Offer in Compromise: An Offer in Compromise is an agreement between you and the IRS or state FTB, EDD, CDTFA to settle your tax debt for less than the full amount owed. This option is only available if you meet certain criteria, such as demonstrating financial hardship or doubt as to the liability.
Currently Not Collectible: If you’re unable to pay your tax debt and don’t qualify for an installment agreement or Offer in Compromise, you may be able to get your account classified as “currently not collectible.” This means that the IRS or state will temporarily stop collection activities, giving you time to get back on your feet.
Bankruptcy: In some cases, bankruptcy may be an option to resolve tax debt. However, it’s important to note that not all tax debts are dischargeable in bankruptcy, and it’s a complex process that requires the assistance of a qualified bankruptcy attorney.
Negotiating with the IRS or State FTB, EDD, CDTFA
Negotiating with the IRS or state can be a daunting task, especially if you’re not familiar with tax laws and regulations. However, a tax professional can help you navigate the process, communicate with the IRS or state on your behalf, and ensure that your interests are protected.
Your tax professional can help you gather the necessary documentation, negotiate a payment plan, or an Offer in Compromise, and provide representation during any necessary hearings or appeals.
Benefits of Professional Help (EA, CPA, Lawyer)
There are several benefits to seeking professional help to resolve your IRS or state back taxes:
Knowledge and Expertise: Tax professionals have in-depth knowledge of tax laws and regulations and understand how to navigate the process effectively. They can identify potential issues and develop strategies to minimize your tax liability.
Reduced Stress: Resolving back taxes can be a stressful process, but with the help of a tax professional, you can reduce your stress levels and focus on other areas of your life or business.
Improved Communication: Your tax professional can communicate with the IRS or state on your behalf, ensuring that your interests are protected, and that you understand the process.
Increased Likelihood of a Positive Outcome: With the right representation, you are more likely to achieve a positive outcome when resolving back taxes. Your tax professional can identify potential issues and develop strategies to minimize your tax liability.
Choosing the Right Professional (EA, CPA, Lawyer)
When choosing a tax professional to help resolve your back taxes, there are several factors to consider:
Experience: Look for a tax professional with extensive experience in resolving back taxes. They should have a deep understanding of tax laws and regulations and know how to navigate the process effectively.
Reputation: Check the reputation of the tax professional you are considering. Look for reviews and testimonials from past clients to get a sense of their track record.
Qualifications: Ensure that the tax professional (EA, CPA, Lawyer) you choose is qualified and licensed to practice in your state. You can check with your state’s licensing board to verify their credentials.
Communication Skills: Choose a tax professional who communicates effectively and clearly explains the process to you. You want to work with someone who keeps you informed every step of the way.
Fees: Consider the fees charged by the tax professional and ensure that they are transparent about their pricing. You don’t want to be surprised by unexpected charges down the line.
Final Thoughts
Resolving back taxes with the IRS or state FTB, EDD, CDTFA can be a complex and stressful process, but it’s essential to take action to avoid serious consequences. Seeking professional help can make a significant difference in your ability to negotiate with the IRS or state and reduce your tax liability.
When choosing a tax professional (EA, CPA, Lawyer), look for someone with experience, a good reputation, and excellent communication skills. With the right representation, you can achieve a positive outcome and get back on track financially. Don’t hesitate to seek professional help if you’re struggling with back taxes.