If you heard the term tax relief but aren’t sure how it works or if it’s something you can qualify to receive, this article is for you. Here at J David Tax Law in Jacksonville, FL, we want to help you understand this term. The following article gives detailed information on how tax relief works and several tax relief programs that can be negotiated. It provides a way for you to determine if you qualify for tax relief as well.
Tax Relief Basics
Tax relief can be defined as a reduction or relief in taxes owed to the IRS. Individuals and businesses may face tax debt problems such as large tax debt, bank levies, wage garnishments, or Federal or State tax liens. Relief from these tax problems is what most of these people need.
In Jacksonville, FL, there are various methods for individuals and businesses to reduce their tax debt. Tax relief programs including the Fresh Start Program, an installment agreement, currently non-collectible hardship status, Offer in Compromise, or a penalty abatement are some examples. Tax debt reduction is also another tax relief method which reduces tax liability which in turn reduces taxes you owe. Another tax relief method is tax credit which covers something you did in your life or business. With complex tax matters such as these, it is important to have these matters be handled by an experienced and trusted tax lawyer. Our tax attorneys in Jacksonville, FL are eager to help you successfully get on with your life by helping you overcome your tax debt burdens.
Tax Debt Relief Programs
When you do not pay the taxes you owe, interest and various penalties can result. This causes issues that can potentially impact your future tax refunds, obtaining loans, keeping or receiving security clearance, and renewing or keeping a valid passport.
A solution to relieve you or your business from these issues would be various tax debt relief programs that can be negotiated. Although we are not a tax relief company, J David Tax Law has a team of experienced tax attorneys in Jacksonville, FL to provide tax relief assistance to our clients. We will represent you or your business to negotiate and resolve your tax debt issues with the IRS or Florida Department of Revenue in the shortest amount of time possible.
Failing to pay your taxes on time can result in Federal or Florida tax liens and bank levy actions. To help you pay the taxes you owe, an installment agreement can be negotiated. This is a type of payment plan with the IRS that states the you agree to pay the taxes you owe in installments within a specific amount of time. It is important these installments be paid on time.
However, unaffordable installment payments can be mandated by the IRS or Florida. Our experienced tax attorneys in Jacksonville, FL work with the IRS to negotiate installment agreements in your own terms.
Currently Non-Collectible Hardship Status
There is a provision in the tax code that allows for a Currently Non-Collectible Hardship which can be negotiated for individuals or businesses who cannot pay their tax liability. Our experience tax attorneys have negotiated Currently Non-Collectible Hardship Status for clients across the United States. This status can relieve wage garnishments or bank levies when applied correctly. This can be the best option to relieve the heavy burden of Federal or Florida tax debt for many people. We found that Currently Non-Collectible Hardship Status can be negotiated for clients represented by our experienced tax lawyers in Jacksonville, FL which includes 68% of clients who owe Federal or Florida taxes. We consistently provide tax debt relief for Federal or State tax liens, bank levies, and wage garnishments. In most cases, it can take within 48 hours to have a wage garnishment released.
Offer In Compromise
An Offer in Compromise or OIC is an agreement between you and the IRS or State of Florida to help you settle your tax liabilities for less than what is owed. This negotiation is impossible, however, if you are able to fully pay your tax liabilities through an installment agreement. There are steps that need to be taken in order to qualify for an Offer in Compromise. You would need to file all delinquent tax returns, pay the current year’s estimated tax payments, and if you are a business owner with employees you need to make all current quarter federal tax deposits. The ability to pay and your future income is measured by the IRS through the Reasonable Collection Potential. This makes Offer in Compromise a limited tax relief solution as only 11% of individuals and businesses with tax debt are able to qualify.
Offer in Compromise is the one solution that can lead to scams. Many unscrupulous tax relief companies will use Offer in Compromise as a bait and switch tactic saying that it can wipe away tax debt. Examples of this tactic can be seen on late night television commercials claiming that “we can settle your tax debt for pennies on the dollar.” Do not fall prey to these scams. Our experienced tax attorneys in Jacksonville, FL will work with you personally to prepare and negotiate your Offer in Compromise agreement with the IRS or State of Florida as well as your Reasonable Collection Potential analysis.
Penalty Abatement Relief
Individuals, small business owners, and self-employed individuals may qualify for relief from unpaid tax penalties if they attempted to comply with law requirements but failed to meet their tax obligations for reasons beyond their control. Two penalties eligible for relief are not paying taxes on time or not depositing certain taxes when required. Our experience tax attorneys in Jacksonville, FL work with the IRS or State of Florida to negotiate various tax relief solutions including reasonable cause penalty abatement, first-time penalty abate, and statutory exceptions.
Find Out if You Qualify for Tax Relief
You can find out if you qualify for tax relief if you schedule a no-cost professional consultation with J David Tax Law today. We help you overcome your tax problems by providing customized tax debt relief solutions for you or your business so you can successfully move on with your life. We offer flexible payment plans for professional tax relief representation that is affordable for anyone. We have represented thousands of individuals and businesses resolve their tax debt problems across the United States. Our experienced tax attorneys in Jacksonville, FL directly work with you to keep you informed during the tax debt relief process as they fight for a resolution.
He is the founder and Managing Partner of J. David Tax Law®. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.
7077 Bonneval Rd Suite 200, Jacksonville, FL 32216