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  • Writer's pictureSean Sadeghi CPA, EA,

Tax Resolution in Los Angeles: A Guide to Resolving Tax

Tax Resolution in Los Angeles: A Guide to Resolving Tax Debts

For many residents of Los Angeles, tax season can bring a lot of stress and uncertainty, especially if they owe the government money they can’t pay back. Tax resolution is the process of resolving tax debts with the government. This blog will guide you through the process of resolving tax debts in Los Angeles and provide you with some tips for avoiding tax debt in the future.

What is Tax Resolution?

Tax resolution is the process of negotiating with the government to resolve a tax debt. This can include negotiating a payment plan, obtaining a loan to pay off the debt, or settling the debt for less than what is owed. The goal of tax resolution is to help taxpayers get back on track with their taxes and avoid penalties, interest, and other financial consequences.

How to Resolve Tax Debts in Los Angeles

The first step in resolving a tax debt is to contact the Internal Revenue Service (IRS) or the Franchise Tax Board (FTB) in California. You can do this by phone or in person. They will help you determine the amount of debt you owe and provide you with options for resolving the debt.

The most common options for resolving tax debts are:

  1. Payment Plan: A payment plan is a way to pay off the debt over time in monthly installments. The government will work with you to determine an affordable monthly payment based on your income and expenses.

  2. Offer in Compromise: An Offer in Compromise is a settlement offer where you agree to pay a portion of the debt in exchange for the government forgiving the rest.

  3. Loan: A loan is another option for resolving tax debts. You can take out a loan to pay off the debt in full or in part.

  4. Innocent Spouse Relief: If you are a married taxpayer who is liable for a tax debt that was incurred by your spouse, you may be eligible for Innocent Spouse Relief. This will relieve you of liability for the debt.

Tips for Avoiding Tax Debts in Los Angeles

To avoid tax debts in the future, it’s important to be proactive and take the following steps:

  1. Keep Good Records: Good record-keeping is essential for accurate tax preparation. Make sure you keep all receipts and documentation related to your taxes.

  2. File Taxes on Time: Filing taxes on time is critical to avoiding penalties and interest.

  3. Estimate Taxes: Estimating your taxes throughout the year will help you avoid a large tax bill at the end of the year.

  4. Hire a Tax Professional: If you’re having trouble with your taxes, it’s best to hire a tax professional who can help you navigate the process.

In conclusion, resolving tax debts in Los Angeles can be a complicated process, but it’s important to take the first step and contact the government. By working with the government, you can resolve your tax debts and avoid financial consequences. With the right preparation and help, you can stay on top of your taxes and avoid tax debts in the future.

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