FAQ

WE KNOW YOU HAVE QUESTIONS

These are some of the questions that our clients ask frequently. If you don’t see the answer you are looking for in this list, please contact us. We are happy to help.

Call (916) 331 – 2011 or click HERE and fill the form.

Real life happens, but the IRS is not in the business of telling tax payers how to reduce their tax debt.  However, the government has many different resolutions to help tax payers when they can’t afford to pay their tax debt. Not all circumstances are the same and not everyone is a candidate for these resolutions, but the answer is: yes! On the best case scenario you can get your tax debt partially reduced to a just few dollars. With an Offer in Compromise you can settle thousands of dollars in debt for as little as $20. Are you a candidate? We may be able to help. Contact us for a free consultation!

Yes, it can. Under some circumstances, the IRS will contact the State Department and revoke passports and have passports denied on submittal. If you travel outside the USA periodically this is important news!

This is a program that allows tax payers to pay off substantial tax debts affordably over a period of time of 6 years. Monthly payments are based on their current income and the value of their liquid assets. The debt is usually paid off in full after 6 years.
It is available to both, business owners and individuals.

Yes, the IRS knows.

You should always file your taxes on time, you may be entitled to a refund and missing a potential payment from the government.

Yes, attorney fees are tax deductible for business owners and schedule A Tax Filers

Schedule A is an income tax form that U.S. taxpayers use to report their itemized deductions, which can help reduce their federal tax liability. A Schedule A form is an optional attachment to the standard 1040 form for U.S. taxpayers paying their annual income taxes.

The interest is very high, this causes the debt to increase rapidly. The penalty is 0.5% of your balance daily.

According with the IRS everyone should be filing taxes every year when they are due.

The IRS will not penalize you if you are due a refund and file a late federal return, but you are limited to file it with in 3 years of the original date to claim money refunded to you.

If you never do so, at some point, the IRS may file a “substitute return” for you and the IRS may then believe that you do owe taxes. This “substitute return” WILL NOT take in consideration many factors on you favor that could give you a positive outcome.

Many factors come in play, these are a few examples:

  • Their computer system is design to detect anomalies
  • You don’t report registered income
  • You spend or deposit a lot of cash with no other records
  • You own a “cash” payment business
  • You reported that earned more or less of what they have in their records
  • You have assets or cash in another country

It varies depending on the complexity of the case and the amount of work that needs to be done to achieve the desired results. Most legitimate Tax firms will offer to do an Tax Account Review to find this information and then give you a cost for their services.
OIC TAX Has saved thousands of dollars in debt to tax payers, some of them for as low as $500. The number comes from looking at the time involved in resolving your problem, not the amount that you owe to the IRS.

The amount of time depends on the specific problem and the participation of the tax payer, quick response and active participation helps speed the process. While some cases can be solved in a few weeks, other can take several months.

Yes, you can deal with the IRS or Franchise Tax Board yourself. Its highly recommended that you do a good amount of research and learn all the applicable laws to your case to avoid any mistakes that can have negative repercussions in the outcome. The IRS representative is well informed and has the IRS’s interest in mind. Be informed and be ready to negotiate. Be careful with the information that you provide to the IRS, you can make mistakes that will affect you for ever.

Finding the appropriate resolution that applies to your personal circumstances is a fairly complex process. Having an experience tax professional on your side will take away the stress of a problem that can take months to be solved. You will have someone that has your best interest in mind when negotiating and dealing with the IRS & State. In addition to that, you can get the peace of mind that you will get the best option possible to solve your tax problem.

Some companies only focus on reaching a resolution and solving your past tax problems/debt.

On OIC TAX we specialize in the full process; from tax preparation to the resolution. We solve our client’s tax problems taking in consideration the past, the present and the future.