If you have unpaid taxes—you are not alone. There are many taxpayers who are unable to settle the tax debt owing to the IRS or the Franchise Tax Board for California income taxes at this time. Whatever the reason or situation, rest assured there are solutions available that a tax debt attorney or CPA can offer when you can’t pay the balance owing to the IRS or Franchise Tax Board. When discussing the balance owing, it is made up of three parts:

• Income taxes – federal and state
• Penalties – for late filing or failing to make installments on time
• Interest – computed on your outstanding balance

When you receive a notice from the IRS or Franchise Tax Board the worst thing you can do is to ignore it. These government agencies have wide statutory powers to garnishee your wages, lien your bank accounts or seize your assets.

If you find yourself in this kind of situation, it is best to contact a debt tax attorney that can provide tax tips and other information. To begin, you should know that there are a number of options that a tax debt attorney can help you with including:

• Negotiated payment plans – called installment agreements. There are special provisions with the IRS if the balance is over $25,000. These plans typically allow the taxpayer to pay the debt over 5 years and keep their current taxes paid.
• Offer in compromise – this provision allows settlement of the tax debt for less than the amount owing. Contrary to TV ads that promise to settle tax debt for pennies on the dollar, it is a complex procedure best handled by a tax professional.
• Penalty abatement – you will need to demonstrate reasonable cause, such as a death in the family, why you can’t pay the full balance owing.

If you have a disputed tax liability there are several options to resolve this including:

• Negotiated settlements
• Review of IRS audits – as both seasoned tax attorneys and CPAs we can challenge the audit results
• Tax court
• Other courts

You do not need to take on the federal or state tax authorizes on your own. There are many rights of which a taxpayer can avail themselves. As tax debt attorneys we have experience assisting clients with IRS tax problems including Interest and Penalty abatement requests, collection due process hearings, offer in compromise, and installment agreement requests. We have an excellent working relationship with IRS and the Franchise Tax Board personnel. John Spurgeon & Associates offer a complementary initial consultation. Please call 626-440-9518.

About John Spurgeon & Associates

John Spurgeon & Associates is a professional services firm located in Pasadena, California with a focus on tax law and related accounting services. They have extensive experience with federal and state income taxes, payroll taxes and sales taxes. They represent business, non-profits and individuals against the IRS and the Franchise Tax Board (California State Taxes). As both tax attorneys and Certified Public Accountants they offer a broad range of tax related services.