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