by Jim Magary | Feb 11, 2016 | Tax Help
We are an AFFORDABLE full service tax firm that specializes in the settlement in negotiation of federal and state tax debt.
Call us today for a free initial tax consultation. 1-866-700-1040
If you have received a tax levy or tax lien, wish to make an installment agreement or settle your back tax debt, call and speak to one of our tax professionals about resolving any state or federal issue that you have.
We have over 206 years of professional tax experience and over 65 years of working directly for government agencies in the local, district, and regional tax offices.
We are a full service tax firm with all work being done in-house.
About Tax Levies, State of California
• Legal authority.
If you have a delinquent balance, we have the legal authority to collect. (California Revenue and Taxation Code Sections 18817 and 18670)
• Levy amount .
They issue levies to collect 100 percent of your delinquent balance for taxes, penalties, fees, and interest.They also issue levies for non-tax debts such as Court-Ordered Debt and Vehicle Registration Debts.
• Levy amount reduced.
They may reduce a levy amount in certain circumstances. If we do, we will mail a levy reduction notice to your bank, and if you provide us with a fax number, we will fax it.
Past Due Liabilities
If you have past-due liabilities, the information below may help you with the collection process.
You may also be interested in Payment Proposals and Offers in Compromise.
Call us today to learn more. 1-866-700-1040
• Board of Equalization
• Employment Development Department
• Franchise Tax Board
• Internal Revenue Service
Board of Equalization
If you receive a Demand for Tax Payment, it means you have a tax or fee liability that is due and payable by the date indicated.
Employment Development Department
The EDD sends out Employer Account Statements (DE 2176) when employers owe past due amounts and/or do not submit quarterly/annual reports when due.
The DE 2176 explains the reason for the statement and requests payment in full and/or the return(s).I
Employers who do not file and pay liabilities timely are subject to the filing of a State Tax Lien.
Offers in Compromise allow qualified tax debtors to eliminate a payroll tax liability at less that full value.
If you receive a notice from the Franchise Tax Board requesting a return or payment for taxes, contact us immediately.
Even if you can’t pay your taxes in full, file your return to avoid further penalties.
Internal Revenue Service
If you do not pay in full when you file, you will receive a bill.
This bill begins the collection process.
The first bill you receive will explain the reason for your balance due and demand payment in full.
It will include the tax due plus penalties and interest that are adding to your unpaid balance from the date your taxes were due. As former IRS Agents we completely understand the process.
Liens, Levies, and Offsets
Liens, levies and offsets are three ways to collect unpaid taxes.
A lien provides public notice to your creditors that someone has a claim against your property. When the debt is paid, the lien is released.
A levy gives the creditor the authority to actually take and sell your property to satisfy the debt. A
n offset occurs when the taxes that you owe are deducted (offset) from a refund due by another government agency.
Board of Equalization
A lien is a legal claim to your property as security for your tax or fee debt.
You will receive in the mail you a preliminary notice at least 30 days before filing a lien with the county recorder.
If you do not pay your liabilities or make arrangements to settle your tax or fee debt, BOE may levy (seize) any type of real or personal property that you own or have an interest in.
The BOE will usually only levy property after sending you a Demand for Payment letter and you have neglected or refused to pay the tax or fee.
Employment Development Department
The EDD may record a state tax lien against employers who do not file required returns and pay liabilities timely. For more information, please see Information Sheet: State Tax Lien (DE631TL).
Franchise Tax Board
FTB may record against taxpayers when their tax debts are delinquent. FTB notifies taxpayers 30 days prior to recording the lien.
If the taxpayer does not respond, a lien is recorded with the county recorder.
Call us today if you have any concerns or questions about any matter if you owe back state or federal taxes. We only handle cases with tax debt of over $15,000.
Owe Back State Tax Debt + Tax Levy + Tax Lien + Settle Taxes Debt + Franchise Tax Board, California State
by Jim Magary | Feb 11, 2016 | Tax Help
We are an affordable professional firm that specializes in immediate and permanent tax relief for back taxes both federal and state.
We have over 206 years professional tax experience in over 65 years of working directly for government agencies and the local, district, and regional tax offices.
Call us today for a free initial tax consultation. We only work cases were over $15,000 in back tax debt exists.
What you should know before preparing an Offer in Compromise
Are you an Offer in Compromise candidate?
If you are an individual or business taxpayer that does not have the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be a candidate. The Offer in Compromise program allows you to offer a lesser amount for payment of a non-disputed final tax liability.
Generally, the State approve san Offer in Compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Although you will be evaluated each case is based on its own unique set of facts and circumstances, we give the following factors strong consideration:
• The taxpayer’s ability to pay.
• The amount of equity in the taxpayer’s assets.
• The taxpayer’s present and future income.
• The taxpayer’s present and future expenses.
• The potential for changed circumstances.
• Whether the offer is in the best interest of the state.
The process your application?
They will only process your Offer in Compromise application if you have done all of the following:
• You have filed all of the required tax returns. If you have no filing requirement, note it on the application.
• You have fully completed the Offer in Compromise application, and provided all supporting documentation.
• You agreed with the Franchise Tax Board on the amount of tax that you owe.
• You authorized the Franchise Tax board to obtain your consumer credit report and to investigate and verify the information you provided on the application.
Will a collateral agreement be required?
Upon approval, the State may require you to enter into a collateral agreement for a term of five years. Generally, a collateral agreement will be required if you have significant potential for increased earnings.
A collateral agreement requires you to:
• Pay us a percentage of your future earnings that exceed an agreed upon threshold.
Are collections suspended?
Collection activity is not automatically suspended.
If delaying collection activity jeopardizes our ability to collect the tax, we may continue with collection efforts. Interest will continue to accrue.
When should offered funds be submitted?
You should not submit the offered funds until the State requests them.
When they do ask for the funds, submit them by cashiers check or money order.
What documentation is required with the application?
For a check list of required items:
• Personal Income Tax – see page 3 of FTB 4905PIT
• Business Income Tax – see page 4 of FTB 4905BE
All financial statement will to be need to be fully documented.
Call us today for a free initial tax consultation.
Offer in Compromise + State of California Back Taxes + Affordable Former Agents
by Jim Magary | Feb 11, 2016 | Tax Help
We are a AFFORDABLE full service tax firm that specializes in back tax debt. Since 1982
There are different tax options available to taxpayers who owe back taxes to California Franchise Tax Board.
Such options include the making of installment agreements in the settling of your tax debt through the offer in compromise.
An installment agreement
Allows you to make monthly payments when you are financially unable to pay your tax liability in full.
We encourage you to make the largest monthly payment possible.
Your tax liability will continue to accrue interest and applicable penalties until paid in full.
All your future state and federal tax refunds
The State will keep any state tax refund you are due and apply it to your balance.
This action does not replace your monthly payment.
Usually they will submit your account to the Federal Treasury Offset Program.
In that case the federal tax refund you would have received is used to pay all or a portion of a state income tax debt you owe.
If the full amount owed is not paid in one year, we may offset future federal tax refunds to satisfy your tax debt.
They usually will record a notice of state tax lien.
The State may record a lien to protect the state’s interest until your balance is paid in full. This will affect your credit report.
Eligible for a payment agreement, call us today.
You may be eligible for an IA if the following conditions apply:
• Your tax liability does not exceed $25,000.
• The installment period for payment does not exceed 60 months.
• You have filed all required valid personal income tax returns.
• You are not in an existing IA.
IA terms and conditions
• Payment—Make timely monthly payments until your tax liability is paid in full.
• Funds—Maintain adequate funds in your bank account.
• Tax returns—File all required valid personal income tax returns timely.
• Future balances—Pay all future income tax balances timely.
• Fee—Pay a $34 IA fee, which will be added to your balance due.
• Withholding—Confirm that the wage withholding rates for Forms DE 4 and W-4 on file with your employer will withhold enough state income tax to pay your state income tax liability for subsequent years..
• Estimated tax payments—Make any required estimated tax payments.
• Certify financial hardship.
If your tax liability exceeds $10,000 or the installment period for payment exceeds 36 months, then you must certify you have a financial hardship.
If they approve or reject your IA request based on your ability to pay and your compliance history.
They will / may request a financial statement as a condition for approval.
If you misrepresent or fail to prove your financial condition, we may reject your request. IAs are subject to periodic review.
Owe Back Taxes + California Franchise Taxes = Make Payments, Installment Agreements + Settle Tax Debt, Offer in Compromise
by Jim Magary | Feb 11, 2016 | Tax Help
We are affordable full service tax firm that specializes in the release of California tax levies. Since 1982
If you owe back taxes to the state of California they have the right to suspend your license and virtually shut down your source of income. Until your tax debt is settled you will have no right to obtain a license.
You can call us today and speak to a CPA or former government agent who knows the exact process of how to get a fast and affordable levy release , get your license back with the possibility of settling your case at the same time through an offer in compromise.
As a general rule, the board of equalization does not send out a tax levies until it tries to take positive steps to reckon the collection of the tax through voluntary compliance.
As a general rule the last thing a federal or state agency wants to do is take mandatory collection action that will upset the taxpayer.
Many times taxpayers are hesitant to address the issue it forces the state or federal agency to take levy action. a levy is a formal seizure.
Should voluntary compliance fail, collection activities includes liens, levies, wage garnishments , suspension of licenses and other similar actions. many times the suspension of licenses are the worst part of the collection process because it can cease and desist all income.
The appropriate collection actions are determined by the collection staff after a careful review each taxpayer circumstances and compliance history.
The decision to take summary collection actions is not taken lightly and it is never the first option they always asked to voluntarily collect the facts
The levy procedures are as follows:
After steps have been taken to collect the money and all notices have been sent and the tax liability still remains at large as well as all voluntary compliance methods have failed and the taxpayer has not make arrangements to pay the tax, a notice of levy is usually the most effective collection activity taken by the BOE staff.
When the financial institution or others holding the asset receive the levy it will a place a 10 day hold on the taxpayer’s assets unless a claim of exemption is filed within 10 days.
The funds will be sent on the 11th day. The tax levy notice that is sent will include two copies one that is sent to the entity being levied typically the bank or credit union and a copy to the taxpayer.
Should you have any question call us today for free initial tax consultation and we will walk you through the process of obtaining a levy release.
You can settle your case and reduce your tax liability get your license back.
What is an Offer in Compromise?
An Offer in Compromise (OIC) is a proposal to pay the Board of Equalization (Board) an amount that is less than the full tax or fee liability due.
Do you qualify for the OIC program?
The OIC program is for taxpayers or feepayers that do not have, and will not have in the foreseeable future, the income, assets, or means to pay their tax liability in full. You qualify for the program if you meet all of the following criteria:
• Have a final tax or fee liability on a closed account.
• Are no longer associated with the business that incurred the liability or a similar type of business.
• Do not dispute the amount of tax or fee you owe.
• Cannot pay the full amount you owe in a reasonable amount of time.
Effective January 1, 2009 through January 1, 2018, the Board will also consider an OIC for open and active businesses that have not received reimbursement from the taxes, fees, or surcharges owed; successors of businesses that may have inherited tax liabilities from their predecessors; and consumers, who are not required to hold a seller’s permit, but incurred a use tax liability.
How do you apply? By Calling us 1-866-700-1040
by Jim Magary | Feb 11, 2016 | Tax Help
We are an affordable full service tax firm that specializes in the release of California tax levies. Since 1982 we one of the most trusted tax resolution firms in the industry.
You can call us today and speak to a CPA or former government agent who knows the exact process of how to get a fast and affordable levy release with the possibility of settling your case at the same time through an offer in compromise.
As a general rule, the board of equalization does not send out a tax levies until it tries to take positive steps to reckon the collection of the tax through voluntary compliance.As a general rule the last thing a federal or state agency wants to do is take mandatory collection action that will upset the taxpayer. Many times taxpayers are hesitant to address the issue it forces the state or federal agency to take levy action. a levy is a formal seizure.
Should voluntary compliance fail, collection activities includes liens, levies, wage garnishments , suspension of licenses and other similar actions. many times the suspension of licenses are the worst part of the collection process because it can cease and desist all income.
The appropriate collection actions are determined by the collection staff after a careful review each taxpayer circumstances and compliance history.
The decision to take summary collection actions is not taken lightly and it is never the first option they always asked to voluntarily collect the facts
The levy procedures are as follows:
After steps have been taken to collect the money and all notices have been sent and the tax liability still remains at large as well as all voluntary compliance methods have failed and the taxpayer has not make arrangements to pay the tax, a notice of levy is usually the most effective collection activity taken by the BOE staff.
When the financial institution or others holding the asset receive the levy it will a place a 10 day hold on the taxpayer’s assets unless a claim of exemption is filed within 10 days.
The funds will be sent on the 11th day. The tax levy notice that is sent will include two copies one that is sent to the entity being levied typically the bank or credit union and a copy to the taxpayer.
Should you have any question call us today for free initial tax consultation and we will walk you through the process of obtaining a levy release. We are a full service tax firm with all work being done in-house.
Tax Levy California + Board Of Equalization + Fast Bank Levy Releases
