John D. Teter Law Offices

REQUEST A CONSULTATION TODAY

408-866-1810

1361 South Winchester Boulevard, Suite 113
San Jose, CA 95128
Subscribe to this list via RSS Blog posts tagged in San Jose CA tax compliance lawyer

San Jose, CA tax lawyer for offers in compromiseCOVID-19 has completely transformed most people’s day-to-day lives. You may be working from home or unable to work until the quarantine period is over. You may have been laid off from your job and now must survive with no income. Even if you are able to continue working, you may be left without childcare or other necessary services. These issues can quickly create serious financial hardship. You may struggle to pay your bills or even to put food on the table. During hard times like these, paying tax debts may simply not be possible. Fortunately, an “offer in compromise” offers many struggling taxpayers the opportunity to settle their tax liability for a reduced amount.

Addressing Outstanding Tax Debt Through an Offer in Compromise

Having an unpaid tax liability can be a very distressing burden to bear. If you currently owe the IRS money, you may be worried that you will be visited by an IRS agent or even face criminal charges for failure to pay. Fortunately, the IRS is much more interested in collecting unpaid taxes than punishing taxpayers who have an unfulfilled tax obligation. The agency offers several options that can help taxpayers who are experiencing financial struggles to fulfill their tax obligations and become compliant with the law.

An offer in compromise allows a taxpayer who cannot afford to pay his or her full tax debt to settle the debt for less than the original amount. If paying your full tax debt would create a financial hardship, an offer in compromise may be right for you. When deciding whether or not to grant an offer in compromise to a taxpayer, the IRS will consider the taxpayer’s income, assets, expenses, and overall ability to pay. In order to qualify for this program, you must file all of your required tax returns, and you cannot be in an open bankruptcy proceeding. The IRS typically charges a fee when submitting an OIC application; however, this fee may be waived if the applicant’s adjusted gross income or household’s gross monthly income is below 250 percent of the poverty guidelines issued by the Department of Health and Human Services. The IRS also typically requires a 20% “deposit” of the offered amount be made at the time of offer submission. Upon offer acceptance, this “deposit” then becomes part of the offered amount. HOWEVER, very importantly, if the offer is rejected, the deposited amount is NOT returned to the taxpayer and is logged as a payment toward the unpaid tax liability. John D. Teter will work extensively with you to ensure you are making a “good” (acceptable to the IRS) offer to maximize the likelihood of offer acceptance and get you back on the road of tax compliance with a fresh start and old tax debt resolved.

...

San Jose, CA tax compliance attorneyMost people know that paying taxes is not optional. However, sometimes something as simple as a mistake or miscalculation on a tax return can result in a tax compliance issue. When the Internal Revenue Service (IRS) discovers a problem with an individual’s tax return, the first method for contacting the taxpayer is typically a letter through the mail. If the issue is not resolved through the mail, an IRS officer may sit down with the taxpayer in a face-to-face meeting to discuss the compliance concerns. If you have been contacted by the IRS because you have not adequately met your tax obligations, an experienced tax lawyer can help you understand your options and protect your rights.

Make Sure That it Is Actually the IRS Who Is Contacting You

In recent years, there has been an uptick in the number of scammers pretending to be IRS agents. A scammer will typically make a phone call to an unsuspecting taxpayer and impersonate an IRS agent for the purposes of gaining access to personal identifying information or stealing the individual’s money. The IRS very rarely makes phone calls regarding tax issues. If an IRS worker does call you, he or she will not demand immediate payment or ask for credit card details over the phone. According to the IRS’s official website, anyone who receives a suspicious phone call from someone claiming to be with the IRS should hang up and call the IRS directly to discuss any potential compliance issues.

Know What to Expect During an IRS Meeting

The IRS recently announced that it will be increasing the number of revenue officers who make in-person visits to taxpayers. These face-to-face meetings will be focused in communities that have been especially affected by reduced IRS resources. In-person meetings only occur after the IRS makes several attempts to contact the taxpayer via mail. These meetings are typically unannounced. The IRS officer should provide two forms of credentials in order to verify that he or she is indeed an IRS worker. If he or she does not offer identification, you have the right to ask to see these credentials. The officer will then discuss your tax concerns and help you understand your options for resolving the issues.

...

: San Jose foreign income tax compliance lawyerIn July 2019, the Internal Revenue Service Large Business and International Division announced that six new campaigns are being launched to help noncompliant taxpayers avoid criminal prosecution and/or civil penalties. These campaigns are part of an effort to allow taxpayers who are currently behind on their tax obligations to become compliant with the law. Two such campaigns address obligations related to foreign financial assets and expatriates. If you have unresolved tax issues related to foreign assets or are living outside the United States, these campaigns may be of special interest to you.

The Purpose of the Offshore Voluntary Disclosure Program

U.S. citizens or residents who make money outside the United States are still required to report this income to the Internal Revenue Service. Those who fail to report foreign assets and pay the associated taxes may be subject to civil penalties and even criminal prosecution. In 2009, the IRS created the Offshore Voluntary Disclosure Program (OVDP) as an avenue for taxpayers to avoid criminal liability and resolve outstanding tax debt related to foreign assets. This program ended in 2018. Because many former OVDP participants are still noncompliant with U.S. tax laws, the IRS has launched a number of new campaigns to address compliance issues.   

Post OVDP Relief and Expatriation

The IRS has recently announced a new campaign addressing individuals who had previously participated in the OVDP but have failed to remain compliant with foreign asset reporting. The Post OVDP Compliance campaign will identify problems that represent a risk of noncompliance. The IRS says it plans to address tax noncompliance through examinations (audits) and “soft letters,” which warn taxpayers that they may need to take steps to meet their reporting requirements.

...
BBB ABA State bar of california SCCBA MH 2016
Back to Top