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IRS Debt Relief Services

At Valley Tax Law, we understand the burden and stress that comes with federal tax debt. It’s the most unavoidable debt, and the consequences of not addressing it can be severe. The government has various means to collect overdue tax bills, including imposing harsh penalties, interest charges, and even seizing assets. However, the IRS is not solely focused on punishment; it provides options for those struggling to pay their taxes.

What is IRS Debt Relief?

IRS debt relief encompasses a range of options designed to help individuals resolve their tax debts. These options often involve setting up a payment plan or negotiating a debt settlement, commonly known as an offer-in-compromise. The best approach depends on the unique financial situation of the taxpayer.

While there are for-profit companies claiming to offer solutions for tax debts, caution is necessary. Many of these services are expensive, inefficient, and high-risk. Valley Tax Law encourages individuals to seek assistance from qualified professionals who can guide them through the process of exploring repayment options.

Who Might Need IRS Debt Relief?

If you find yourself in any of the following situations, it’s crucial to explore IRS debt relief options promptly:

  • You have overdue taxes and lack the means to cover the bill.
  • The IRS has sent you letters regarding your debt.
  • The IRS has employed a private debt collector to pursue your debt.
  • You’ve failed to file your tax return for one or more years.
  • Your debt is classified as “seriously delinquent” ($52,000 or more), and the IRS has instructed the State Department to take actions against your passport.

Trustworthy Professionals at Valley Tax Law

Valley Tax Law acknowledges the skepticism surrounding tax settlement companies and emphasizes the importance of choosing trustworthy professionals. Our team, including IRS Taxpayer Advocates, tax attorneys, and certified credit counselors, possesses the following qualities:

  • Up-to-date professional certifications, licenses, or affiliation with accredited organizations.
  • Commitment to understanding the reasons behind your tax issues.
  • Guidance on the IRS’s payment options tailored to your situation.
  • Providing a realistic assessment of the amount you’ll need to pay.
  • No up-front fees or pressure to engage our services.

IRS Relief Options Explained

1. Installment Agreements

Installment agreements with the IRS operate similarly to loans, allowing you to pay a fixed amount each month until your tax bill, including interest and penalties, is settled. This approach offers benefits such as stopping the accrual of penalty fees, preventing liens, levies, and garnishments, and making the debt payment more manageable over time.

2. Offer in Compromise (OIC)

The offer-in-compromise (OIC) option involves settling your tax debt for less than the full amount owed, payable either as a lump sum or through monthly installments. Success with an OIC depends on various factors, including income, expenses, and asset equity. Valley Tax Law can guide you through the application process and increase your chances of approval.

3. Currently Not Collectible (CNC)

Individuals facing genuine financial hardship and unable to pay any money toward their tax debt may qualify for Currently Not Collectible status. While this provides temporary relief from collection efforts, it comes with downsides, such as accumulating interest and potential property liens.

4. Innocent Spouse Relief

The IRS acknowledges situations where one spouse is unfairly burdened with tax liability due to the actions of the other. Innocent Spouse Relief allows eligible individuals to be relieved of taxes, interest, or penalties associated with their partner’s errors.

5. Penalty & Interest Abatement

While uncommon, the IRS may offer penalty abatement for special hardships associated with delinquent tax bills. Under the First Time Penalty Abatement policy, relief may be granted for issues like failing to file a tax return or pay on time. Interest abatement is more restricted and rarely approved.

Signs of a Tax-Debt Relief Scam

Recognizing potential scams is crucial in the tax-debt relief industry. Valley Tax Law advises clients to be vigilant and provides the following red flags:

  • Direct marketing through letters or email.
  • Unsubstantiated guarantees without understanding your debt details.
  • Claims of eliminating or significantly reducing penalties and interest.
  • Up-front payment demands.
  • Lack of interest in understanding the reasons behind your IRS issues.
  • Delays in providing results or repeated requests for the same documents.

State & Local Taxes

Addressing state and local tax debts differs from dealing with the IRS. States may have their own debt settlement programs with varying terms. For information on paying state tax bills, contact your state comptroller’s office or visit NASACT.Org for state-specific resources.

Other Debt-Relief Help

Beyond IRS debt relief, Valley Tax Law acknowledges that individuals may encounter various financial challenges. Our services extend beyond tax-related matters, offering assistance in:

  • Credit counseling: Free or low-cost counseling to navigate your financial situation.
  • Legal help: Exploring debt dismissal and, in some cases, bankruptcy options.
  • IRS Taxpayer advocate: Connecting you to resources and solutions for your tax concerns.

Get Professional Help with Your Debt

Valley Tax Law stands out among companies offering tax debt assistance. Before sharing your tax information with any third party, ensure you consult with a reputable nonprofit credit counseling agency or a qualified professional.

Our experienced team is ready to assist you in addressing tax debt and other financial challenges, providing objective advice without ulterior motives. Schedule an appointment with our counselors to take the first step towards financial stability.

Choose Valley Tax Law for Reliable and Trustworthy IRS Debt Relief Services. Your Financial Future Matters to Us.

Testimonials

Our Team

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Glen Barber

Senior Tax Consultant

Over 14 years of experience in consulting and tax relief. Responsible for liaising between clients and the resolution team and preparing resolution strategies.

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John Nelson

Senior Tax Consultant

Over 23 years of experience in various fields of business, including banking, human resources, and consulting.

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Aaron Brumfield

Senior Tax Consultant

Over 25 years of experience in marketing and business development. Responsible for helping clients with tax relief and customer service.