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Back Taxes Owed

Experienced Help with Back Taxes in San Francisco

back taxes assistance in San FranciscoAt the firm of Steve Rabin, CPA, we understand how intimidating back taxes are. Whether you owe taxes at the federal, state, or local level, the stress of not knowing where to start or what resources are available to you can be overwhelming. We have spent years using our expertise in back taxes to help individuals in San Francisco and the Bay Area get the relief they deserve, and we want to do the same for you.

Since we started our firm, we have helped our clients correct back tax compliance problems. Our passionate team has helped make this possible through meticulous document preparation, an in-depth understanding of tax law, and a genuine dedication to our clients. We look forward to meeting you and helping you take the first step toward total tax relief. Call our office today for your free initial consultation!

Call: 415-969-3414 Book a Consultation

What Are Back Taxes?

Back taxes are taxes that have gone partially or fully unpaid in the year that they were due. Back taxes can occur at the national, state, and local levels. Not everyone who neglects to file a return owes back taxes, but the IRS or state will notify you if you do.

If you owe back taxes, you will begin to receive notices in the mail alerting you to your delinquent status. Unfortunately, too many people assume that if they ignore the warnings from the IRS or state that the issue will resolve itself. The reality could not be further from the truth. The longer your taxes go unpaid, the greater the financial repercussions become.

3 Common Mistakes That Result in Back Taxes

Our CPA and his team have helped countless clients with their back tax issues. Frequently, they are not aware of what they did or didn't do to have back taxes on their records. Individual circumstances vary, but there are three mistakes that we commonly see, including:

  1. Filing a return but failing to pay tax liability: Filing a tax return does not automatically mean that you have covered all your bases. You still have to cover your tax liability, which is the total amount of tax you owe from liabilities like capital gains, income tax, self-employment tax, and any penalties or interest. Tax liability differs from year to year, and it can be easy to overlook one. We will work with you to ensure your entire liability is covered and show you what to look for in the future.
  2. Failing to report all your income: Failure to report your full income can result in costly penalties and fines, even if it was by accident. One of the more common areas taxpayers forget to report income in is cash income received from contract work. Our team will review your previous and current tax returns to report all your income sources.
  3. Neglecting to file your tax return: We understand that life can be hectic, and it can be easy to forget to file your tax return. We stay up to date on federal, state, and local deadlines for current and previous years.

Why You Should Handle Back Taxes Quickly

couple reading letter from IRS about back taxes owedEach year, countless taxpayers put off addressing their back taxes. Whether they believe the IRS has made a mistake or think the problem will go away on its own, ignoring back taxes can prove costly the longer it goes without a resolution. Once the IRS sends them a CP504 Notice, they need to move quickly to address their tax debt.

A CP504 Notice, or a Final Notice, is an alert from the IRS that it has not received payment for an outstanding balance. It lists the amount you owe, when it is due, what penalties and interest have been added on, and how to pay the amount. If the IRS does not receive a payment within 30 days, they can seize your income, business assets, bank accounts, retirement savings, and more. Our firm's staff are excellent at understanding what course of action to take in the face of C504 Notices and will work to find the most effective solution for your back taxes quickly.

Our Four-Step Process to Compliance

No matter your situation, we help you through it with a structured approach. We perform a four-step process that we actively fine-tune along the way. Our four-step process includes:

  1. We will gather any necessary documents, including past tax returns, W-2s, and 1099 forms for the required years. We can also help you request a wage and income transcript from the IRS for further details about your back taxes.
  2. Our CPA will prepare your returns from any previous years. The most challenging aspect of filing for earlier years is accounting for their respective tax laws, which can be easy to overlook and could potentially provide setbacks with filing.
  3. We will submit your tax return correctly. Late tax returns can only be filed on paper and sent to a local IRS Service Center either by postage or in person. Furthermore, you must use certified mail as proof that the IRS has received your returns. We will make sure each return is in a separate envelope to reduce the chances of a clerical error.
  4. We will help you establish an Installment Agreement (IA) to pay off your back taxes to the IRS. An IA allows you to pay off multiple years of back taxes through one consolidated payment plan. We will negotiate with the IRS on your behalf to agree on a payment plan that is affordable and reasonable.

"Steve is first rate. I've worked with many CPAs over the years and have yet to find one as knowledgeable and helpful. His command of complex tax issues is top notch. Highly recommended."

- D. Bryan, San Francisco, CA

Additional Ways We Can Help

Various appeals and statuses can directly affect if, when, and how you pay your back taxes at the federal level. Our San Francisco back tax professionals will sit down with you to review your circumstances and the details surrounding your tax debt to determine if any of these solutions are right for you.

Filing for Currently Not Collectible (CNC) Status

woman consulting with tax specialist regarding back taxes in San FranciscoIf you do not have the means to pay back the IRS, filing for Currently Not Collectible (CNC) status may be the right option for you. Once we help request the status, the IRS will thoroughly review your financial situation to confirm that you do not have a way to pay them back.

We will provide any necessary documents to the IRS that helps show your income is unable to sustain regular payments. Once the IRS approves your CNC status, all requests for payments will stop. However, penalty and interest assessments will continue until you are financially stable to begin paying them back.

Making an Offer in Compromise (OIC)

An offer in compromise (OIC) is the IRS' version of a settlement plan. An OIC allows you to pay a portion of what you owe in exchange for the discharge of your remaining balance. We will directly work with the IRS on your behalf to furnish any documents or forms, including Form 433-A or 433-B. You must complete all OIC payments within two years of the agreement. Skipping payments can result in hefty penalties.

Requesting for Penalty Abatement

If you had reasonable cause for accumulated back taxes, we could help you apply for penalty abatement. You might qualify for penalty abatement through situations such as natural disasters, a death in the family, or other major life events.

Penalty abatement does not reduce the amount of back taxes you owe, but it minimizes the penalties applied to your debt, making a substantial difference. Our San Francisco back tax professionals will review your circumstances to see if penalty abatement is appropriate.

Filing for Innocent Spouse Relief

Innocent Spouse Relief is an IRS status granted to taxpayers with back taxes who were unaware of their spouse's false tax filing. It only applies to individual income or self-employment taxes. If you are approved for Innocent Spouse Relief, you are no longer financially responsible for the debt. The process for claiming this status can seem confusing, but we will be by your side every step of the way.

One-on-One Back Taxes Relief in San Francisco

Whether you have just found out you owe back taxes or received a CP504 Notice, it can be confusing and stressful to figure out your next steps. We have helped CEOs, CFOs, trustees, executors, attorneys, and other individuals with their back taxes.

We are proud to help the residents of San Francisco and its surrounding communities in the Bay Area. The firm of Steve Rabin, CPA is eager to help you get your financial life back on track through diligent and meticulous tax maneuvering. Call our San Francisco office today for your free consultation!

Call: 415-969-3414 Book a Consultation

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