Lincoln Tax Resolution Lawyer
As a resident of Lincoln, California, you may be facing overwhelming and daunting tax issues. These can create financial and legal problems that are difficult to manage independently. Tapping into the knowledge and experience of a professional tax resolution attorney can help you resolve these issues.
Understanding Tax Resolution
Tax resolution is a comprehensive process. It involves addressing and resolving tax disputes and issues with the Internal Revenue Service (IRS) and the state of California. Individuals or businesses often encounter difficulties meeting their tax obligations. Others have made errors on their tax returns. It often requires professional assistance to navigate and resolve these challenges. To gain a deeper understanding of tax resolution, it’s essential to explore its various aspects, including:
- Common tax problems
- The role of tax resolution professionals
- The methods used to achieve resolution
Common Tax Problems
Tax problems can arise for various reasons. These include filing errors, unpaid taxes, or discrepancies in reported income or deductions. Some common tax issues that may require tax resolution include:
- Unpaid Taxes: Sometimes, individuals or businesses fail to pay their taxes on time or in full. If so, they may face penalties, interest, and potential legal action from the IRS or the state of California.
- Tax Audits: The IRS or state tax authorities may conduct audits to verify the accuracy of tax returns. If discrepancies are discovered, taxpayers may face additional tax assessments, penalties, and interest.
- Tax Liens and Levies: The IRS or state tax authorities may place liens on property. They may also impose levies to seize assets when taxpayers fail to resolve their tax debts.
- Payroll Tax Issues: Businesses that do not adequately withhold and remit payroll taxes may face penalties and legal action from the IRS or the state of California.
- Unfiled Tax Returns: Failing to file required tax returns can result in penalties, interest, and potential criminal charges in extreme cases.
Types of Tax Solutions
- Offer in Compromise (OIC): An OIC is an agreement between you and the IRS. It allows you to settle your tax debt for less than the full amount owed. Our tax lawyers can help you determine if you qualify for an OIC. We can also assist you in negotiating possible terms.
- Installment Agreements: If you cannot pay your tax debt in full, our tax attorneys can help you negotiate an installment agreement with the IRS or the state of California. This allows you to pay your debt over time in smaller, more manageable installments.
- Penalty Abatement: If you have been assessed penalties for late filing, late payment, or other tax-related issues, our tax resolution lawyers can help you request penalty abatement. This can potentially reduce or eliminate these penalties.
- Innocent Spouse Relief: In some cases, your spouse or former spouse is solely responsible for tax errors or omissions that resulted in tax debt. Our tax attorneys can help you seek innocent spouse relief, protecting you from liability for the tax debt.
- Lien and Levy Releases: If you are facing a tax lien or levy, our tax lawyers can help you negotiate with the IRS or the state of California to release the lien or levy. This can protect your property and assets from seizure.
- Audit Representation: If you are facing an IRS or state tax audit, our tax resolution attorneys can represent you throughout the process. We can ensure that your rights are protected and help you achieve a favorable outcome.
Tax resolution can be a complex and confusing process. Still, with the help of our experienced tax attorneys, you can resolve your tax issues quickly and efficiently, taking the burden off your shoulders for good.
Tax Resolution FAQs
Q: How Long Can the State of California Collect Back Taxes?
A: The state of California has a 20-year statute of limitations on the collection of back taxes. This means that the California Franchise Tax Board has 20 years from the date the tax was assessed or the return was filed, whichever is later, to collect any unpaid taxes. After this period, the FTB generally loses its legal right to collect the debt. However, certain actions, such as entering into an installment agreement or filing for bankruptcy, may extend the statute of limitations.
Q: How Far Back Can a California Tax Audit Go?
A: In general, the California Franchise Tax Board can audit tax returns filed within the past four years. However, the audit period may be extended to six years if the taxpayer has substantially understated their income by more than 25% of the gross income stated on the return. If the taxpayer has filed a fraudulent return or has not filed a required return, there is no statute of limitations allowing the FTB to audit and assess taxes at any time.
Q: Does the State of California Forgive Tax Debt?
A: While the state of California does not have a specific tax debt forgiveness program, taxpayers facing financial hardship may be eligible for certain tax relief options. These options can include penalty abatement, an Offer in Compromise, or a request for Currently Not Collectible status. Each option has specific eligibility criteria. Taxpayers should consult with a knowledgeable tax resolution attorney to determine an appropriate course of action.
Q: What Is the California 10-Year Exit Tax?
A: The term “California 10-year exit tax” is a misnomer, as no specific exit tax is imposed on individuals who leave the state. However, California does have a clawback provision for certain tax benefits related to the Qualified Small Business Stock (QSBS) exclusion. If a taxpayer leaves the state within ten years of claiming the QSBS exclusion, they may be required to recapture and pay taxes on the previously excluded gain. Additionally, California may continue to tax certain types of income earned by former residents even after they have left the state. This may contribute to the misconception of a 10-year exit tax.
Contact Coggins Law Today
If you are facing tax issues in California, the experienced tax attorneys at Coggins Law can help. Our team of dedicated legal professionals can work with you to resolve your tax issues quickly and efficiently. We can ensure that your rights are protected immediately. Contact us today for a consultation. We look forward to helping you reach an optimal solution.