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Many individuals are used to the forgiving nature of credit card debt. If you miss a payment, there’s a nominal penalty and a predictable interest rate. Unfortunately, tax debt is far less forgiving. Penalties apply for a range of tax infractions and the interest rate on unpaid liabilities can quickly snowball. In many cases, the amount of tax debt owed far exceeds the original underpayment. With unforgiving penalties and interest, many taxpayers need affordable tax relief. That’s where an experienced tax attorney can help. The Law Office of Jin Kim helps clients resolve tax debt owed to the IRS, FTB, CDTFA, and EDD. From offers in compromise to installment agreements, there’s often a tax resolution option for every taxpayer.
To receive a free consultation with tax attorney Jin Kim call her office at (916) 299-9913 Monday through Friday from 8 AM to 5 PM.
Offer in Compromise
Many taxpayers have heard of an offer in compromise, but it’s widely misunderstood. First, an offer in compromise isn’t a negotiated settlement with the IRS where the taxpayer throws out an offer and the IRS counteroffers. Likewise, the offer proposed to the IRS isn’t a percentage of the tax debt or an amount the taxpayer feels like making. Rather, the offer must align with the taxpayer’s reasonable collection potential – that is, the amount the IRS can collect from assets and future income. Furthermore, a down payment must also be submitted with the application, making an offer in compromise a costly process without a guarantee of success; but of course, the likelihood of success increases with the involvement of an experienced tax attorney.
Despite the cost and complexity of the offer in compromise process, it can be a powerful tax relief strategy for individuals with modest income and assets. In effect, an offer in compromise can resolve tax debt for less than the amount owed.
Installment Agreement
The IRS and many state tax agencies accept installment agreements to resolve tax liability. At base, the taxpayer will repay the amount owed through a series of payments over time. In exchange, the IRS or state tax agency will cease collection methods such as garnishment and levy. In the end, the taxpayer gets peace of mind that their bank account won’t be drained, wages won’t be garnished, and interest won’t accrue, and the IRS gets repaid over timed without investing further in collections.
Installment agreements are not guaranteed for every taxpayer. Also, installment agreements can be used in conjunction with other tax resolution strategies that decrease overall liability. To explore your tax relief options and learn more about installment agreements, call our Roseville tax attorney for a free consultation.
Currently Not Collectible Status
It’s possible to stop IRS collections while waiting for the 10-year collection period to expire. For taxpayers with modest income and assets, currently not collectible status can be a viable alternative to costly offers in compromise or installment agreements.
About Jin Kim
Tax attorney Jin Kim has helped hundreds of taxpayers resolve tax liability with the IRS and State of California. In addition to her audit defense and tax resolution practice, she also represents cannabis businesses against the CDTFA for sales tax underpayment and IRS for 280E and COGS assessments. Jin Kim also maintains a successful divorce practice in Roseville and Sacramento, CA. To schedule a free consultation with attorney Jin Kim call her office at (916) 299-9913 Monday through Friday from 8 AM to 5 PM.
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