InfoOctober 6, 2016 · Legal
Los Angeles Tax Attorneys to assist clients in filing IRS Settlements
The Internal Revenue Service provides a few ways to settle tax debts owed to them, one of which is the ‘Offer in Compromise’, which is a legitimate option for those who are unable to pay off their total tax liability amount. However, there is another alternative, it is the ‘Partial Payment’ option, also known as ‘Partial Payment Installment Agreement’ (PPIA). This plan is a recourse for people who do not qualify for the ‘Offer in Compromise’.Press Release VideoLoading the player...Details(prREACH)
Los Angeles, CA- The Internal Revenue Service provides a few ways to settle tax debts owed to them, one of which is the ‘Offer in Compromise’, which is a legitimate option for those who are unable to pay off their total tax liability amount. However, there is another alternative, it is the ‘Partial Payment’ option, also known as ‘Partial Payment Installment Agreement’ (PPIA). This plan is a recourse for people who do not qualify for the ‘Offer in Compromise’.
The ‘Partial Payment Installment Agreement’ was introduced by the IRS with the passage of the American Jobs Creation Act and signed into law on October 22nd 2004, allowing the IRS to enter into agreements which result in either full or partial payments with individuals affected.
To be eligible for this payment plan under the Fresh Start Program, taxpayers must be current on all tax returns. For taxpayers who were previously unable to fully pay their liabilities, the PPIA has come in handy to resolve unpaid tax debt by assisting those with limited payment options.
Los Angeles Taxpayers considering the PPIA are required to provide complete and accurate financial information which will be reviewed and verified;
Prior to enactment of this legislation, taxpayers that could not fully pay their outstanding tax liabilities could only enter into an agreement with the IRS if it resulted in full payment of the liability. This left taxpayer unable to meet this criterion with limited payment options.
Taxpayers who are being considered for a PPIA must provide complete and accurate financial information that will be reviewed and verified. Taxpayers will also be required to address equity in assets that can be utilized to reduce or fully pay the amount of the outstanding liability. In addition, taxpayers granted PPIAs will be subject to a subsequent financial review every two years. As a result of this review, the amount of the installment payments could increase or the agreement could be terminated, if the taxpayer’s financial condition improves.
The PPIA payment option will provide an appropriate payment option for many taxpayers. Those who qualify for the PPIA option will be strongly encouraged to make their payments via the direct debit option.
About Los Angeles Tax Attorneys Delia Law Tax Firm Los Angeles Tax Attorneys - Delia Law is headed by founding partner Dawn Delia. Ms. Delia earned a B.A. from Southern Methodist University in Dallas, Texas and a Juris Doctorate from American University, Washington College of Law in Washington, D.C. with an emphasis on business and taxation law. Ms. Delia holds licenses from both New York and Maryland. Ms. Delia’s knowledge and experience in tax resolution and financial management has helped many individuals and businesses resolve their IRS tax problems.VideoLinksQuotes“The process of submitting an Offer In Compromise is complicated and requires a great deal of skill, detail and compliance with the many IRS procedures, guidelines and regulations,” says Dawn Delia, Founding Partner at Los Angeles Tax Attorney Delia Law. “It is crucial that your OIC is submitted properly by an experienced, knowledgeable tax attorney or the result could mean a rejection of your offer or even worse, you may be required to pay more than necessary.”ImagesContact
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