IRS Tax Relief

While most people would agree that paying taxes can be a burden, it is still your legal responsibility. At Montgomery & Wetenkamp, we help strike a balance between what taxpayers are legally obligated to pay and what they can realistically afford to pay. Working within the confines of state and federal tax collection laws, our attorneys help people who owe taxes they cannot pay. The specific tax relief strategy that we pursue always depends on your individual situation and circumstances, including where the government is in their collection efforts, as well as your own individual financial profile. We always take the time to understand the unique facts of each case in a free consultation before proposing a tax relief strategy. We are always happy to meet with you in our offices, conveniently located in both Sacramento and Modesto.

IRS Levy Assistance

If you have an outstanding tax debt, the IRS does have the authority to issue levies. After you have been given proper notice of the tax debt and still do not pay your tax bill or make arrangements to pay it, the IRS can levy your bank account and garnish your wages . For many taxpayers, this can result in extreme financial hardship and can cause issues with employers and loved ones. It’s always best to get ahead of the game and contact us before a levy has been issued. However, if you’ve already been hit with a levy, you won’t have to worry knowing you have an experienced IRS tax lawyer on your side. A wage levy or wage garnishment can be damaging because it continues paycheck after paycheck until the taxing agency agrees to release it, or until the tax is paid in full. The amount of the wage levy is not usually based on a taxpayer’s ability to pay, so it often results in the taxpayer falling behind on bills and other important obligations.

Unlike most wage levies, when it comes to bank levies, they do not automatically recur. The IRS must issue a new bank levy every time it uses this method of enforced tax collection. The amount depends on how much money is in the targeted account and how much is owed. This means they can take as much as someone’s entire life savings. This is the point where the IRS starts taking aggressive action, forcefully seizing what is owed. It’s important not to ignore the initial signs and to get help right away. You won’t be fighting this battle alone. With a personalized approach, we will be there for you every step of the way. Give us a call to discuss your tax relief options with one of our experienced tax attorneys.

Tax Settlements – Offer in Compromise

The Offer in Compromise (OIC) program has been around for many years as an option for taxpayers to settle their tax debt for less than the full amount. Some aspects of the OIC program have been updated under the “Fresh Start” initiative to make it easier for struggling taxpayers to meet the requirements for an accepted offer. At Montgomery & Wetenkamp, we provide complimentary evaluations to determine if your case is a candidate to be settled through an offer to compromise. Usually for an offer to be accepted, taxpayers must prove that the IRS is never going to be able to collect more than what is being offered. This takes much more than simply filling out and filing the proper forms. In fact, most of the technical work and negotiations begin after the required forms have been filed. So, it’s important to have a skilled IRS tax attorney by your side. Our tax attorneys will work tirelessly to get you the tax relief you deserve.

Tax Hardships – Currently Not Collectible Status

Currently Not Collectible status is meant for people who are in financial hardship situations, no matter if temporary or permanent. These taxpayers simply do not have the means to pay back their taxes, even in monthly installments. Generally, if your monthly necessary expenses are equal to or higher than your monthly income, you are considered “currently not collectible,” and therefore are not required to make monthly installment payments. To be placed in this tax relief status, taxpayers must go through an analysis by the IRS. Since there are many ways to calculate income and expenses, it can get complicated. You should know what your options are. With our tax attorneys on your side, we will fight for you and help you in any way we can.

Installment Agreement

When it comes to installment agreements with the IRS or the Franchise Tax Board, no two cases are alike. An installment agreement is the best option for people who are unable to pay their back taxes in one full installment, but have the means to pay some or all of their tax debt over time. Sometimes a financial statement is required to help determine how much the taxpayer can afford on a monthly basis. Other times, they will agree to a payment based on how much is owed without regard to one’s ability to pay.

The government can also require a large down payment before they will even agree to a payment plan. Since the government begins with the assumption that the taxpayer can pay in full, it is up to the taxpayer to prove otherwise. No matter your situation, taxpayers with a significant amount of cash or equity in assets can have a difficult time getting an approved installment agreement. With tax relief help in Sacramento and Modesto, our skilled attorneys will always negotiate to seek the lowest possible payment for you so you will be able to meet your other financial obligations without worry.

Tax Audits and Exams

The IRS often sends out a notice indicating that they will be taking a closer look at your tax return. When you’re up against the IRS, an organized approach and an understanding of tax law and procedure is crucial when defending your tax return. With an audit, the IRS will ask for clarification of an item(s) on one or more tax returns. They will often require proof of transactions reflected on the return, and if they don’t receive sufficient explanation and cannot provide the requested documentation, the IRS will make adjustments to the tax return that will result in an even higher tax liability.

Our firm helps audit clients focus on the right questions. The main focus should be on presenting the supporting documents in an organized, well-reasoned manner. To make it through this part of an audit, the taxpayer must have the documentation to support their expenses and a legal basis for claiming them. We know how invasive and intimidating an audit can be, especially if you go unrepresented and unprepared. Call us for a free consultation and see how we can help. You’re in good hands with us.

Attorney Advertisement. Tax Attorneys Montgomery & Wetenkamp are licensed by the State Bar of California, are licensed attorneys authorized to practice before the United States Tax Court, and may practice before the Internal Revenue Service (IRS) as attorneys in all 50 states. Sacramento Tax Attorneys and Modesto Tax Attorneys Montgomery & Wetenkamp perform all services in Sacramento, California and Modesto, California. The content of this website is for informational purposes only and does not constitute legal advice. The tax information contained on this website, is not intended to be used, and cannot be used, referred to or relied upon, for the purpose of avoiding tax-related penalties under the Internal Revenue Code or promoting, marketing, or recommending to another party any tax-related transaction or matter addressed herein. Past successes cannot be an assurance of future successes because each case must be decided on its own merits and will differ if based on different facts. Full disclaimer provided on our disclaimer page and is incorporated herein by reference.