Tax settlement in Virginia is a process that can help taxpayers repay their tax debts. The tax debt and relief process in Virginia is not the same as in the Internal Revenue Service (IRS) and state tax debtors cannot use the IRS to settle their federal tax liability. Tax debt relief in Virginia is available to only tax paying residents of Virginia. Residents of the state may also contact the Internal Revenue Service for assistance with tax debt and relief requests.
Tax settlement in Virginia is similar to the negotiation processes used by tax professionals and experienced settlement companies to reduce federal tax liabilities. Professional tax debt and relief specialists negotiate with tax debtors on behalf of taxpayers in Virginia. These negotiations result in the successful negotiation and settlement of tax debts in a taxpayer’s favor. Tax experts play an important role in tax debt relief because they can access tax information that is often unavailable to ordinary consumers or even to tax paying professionals.
Tax professionals negotiating tax debt relief in Virginia utilize a variety of strategies to obtain the best tax benefits for their clients. These strategies include: Offer in Compromise (OIC); Installment Agreement; and Currently Not Collectible status. OIC is a tax debt relief strategy that results in a tax debt reduction of up to 70% and a tax debt relief of up to 50% of the total balance. Installment Agreement involves a monthly payment schedule that will repay a portion of a tax debt in a lump sum.
There are three tax debt and relief options that taxpayers may choose from. A tax debit agreement is a written contract that stipulates how a tax debt is repaid. In a tax debit agreement, the taxpayer and the tax adviser submit detailed financial information to the tax debt relief firm. The tax adviser then negotiates the debt with the creditors on behalf of the taxpayer. The tax debt relief firm then pays off the creditors using funds provided by the taxpayer. A taxpayer may be able to pay off his or her tax debt in as little as two years.
Another tax debt relief option available to taxpayers in Virginia is Currently Not Collectible status. This status allows taxpayers to negotiate reduced tax obligations with the creditors. The tax debt relief firm sends a notice to the tax collector informing the collection agency that the tax debt relief option has been declined. If the creditor agrees to the reduced amount, the tax debt is forgiven.
Some tax experts in Virginia offer their clients a tax debt relief program known as a compromise arrangement. This tax debt relief program enables the taxpayer and his or her tax adviser to agree on a reduced tax liability. A compromise agreement is usually a better solution than OIC, because it eliminates the tax debt altogether for the taxpayer. For this reason, tax experts in Virginia prefer to use a compromise agreement when possible.
In recent years, many tax debt relief companies have come into existence. These tax debt relief companies will work with each individual taxpayer to find the right settlement amount that meets all of the taxpayer’s needs. Tax specialists and tax lawyers represent the taxpayer during all stages of the negotiation process. Tax specialists like the tax attorney Virginia know all of the tax law for Virginia, and tax lawyers can assist with common tax problems such as the double standard and abatement.
Taxpayers who are not satisfied with the results of an offer made by a tax debt relief company should still retain an attorney. An attorney can make sure that the proper tax laws are followed and that a suitable compromise agreement is entered into. Tax attorneys can also provide help with other issues related to taxes, such as filing tax returns, filing claims for tax relief, and working out a repayment plan for the tax debt. Attorneys can even represent the taxpayer after a tax settlement in Virginia has been reached, if that is what the taxpayer desires.