For many Los Angeles residents, the tax system is complex. This makes it easier to get behind on filing and paying taxes. If you have unpaid taxes and the IRS is approaching you, it’s time to seek expert assistance. A great Los Angeles tax relief company will assist you in negotiating with the IRS and managing your tax obligation on your behalf.
Tax Rates in the State of California and Los Angeles
In California, Los Angeles taxpayers have high-income tax rates. As a matter of fact, among all of the states in the US, California’s tax rates are the highest.
For taxable incomes, state income tax rates in California state range from about 1% to 13.3%. The more you earn, the higher will be the tax rate applicable.
Examples of California tax rates:
- For those who are single with a taxable income of $50,000, you belong to the 8% tax bracket.
- For those who are single with a taxable income of $100,000, you are in the 9.3% tax bracket.
- Once married and tax filed jointly with your spouse, and $50,000 is your taxable income, you belong to the 4% tax bracket.
- Once married and tax filed jointly with your spouse, and $100,000 is your taxable income, you are in the 8% tax bracket.
Defining Tax Relief
Tax relief is a government policy or program designed to help businesses and individuals reduce burdens or debts related to tax. Any government policy or program designed to help struggling businesses and individual taxpayers resolve or reduce tax-related debts would be classified and referred to as tax relief. It may come in the forms of universal tax cuts, initiatives that are aimed at meeting a particular goal of the government, or possibly, specific programs that would benefit a group of taxpayers.
Possible Reasons Why to Get Tax Relief
In Los Angeles, a huge portion of income may be eaten up by tax liabilities. Paying tax liabilities can, at most times, really feel like a burden, and this is where tax relief comes in. May it be reducing tax liabilities or enabling one to gain more income benefits, tax relief may help in doing so.
Due to unexpected turn of events that have an immense impact on your finances (possibly illness or job loss), paying the tax liabilities you owe may be a struggle. In these types of situations, tax relief may provide effective solutions for resolving pending tax liability in favorable manners that could help lessen the burdens.
Failure in Paying
If you are due on paying tax liabilities, you may be issued to fail in paying penalties. Generally, .5% is the percentage of Federal failure in paying penalties of any Federal tax liabilities that are owed after the due of a part of or for each month with an outstanding of 25% maximum of the liability. The California failure to pay the penalty for any California tax liability is 5% of the owed beyond the due date, plus (ii). for each month, 5% of that liability or part of a month (up to 40 months) remains unpaid.
Failure of Filing
Failing to file tax returns upon due is subject to failure in filing penalty. For Federal failures, generally, the file penalty is at 5% for any Federal tax liabilities owed after the due of a part of or for each month with an outstanding of 25% maximum of the liability. On the other hand, failure to file a penalty in California is generally 5% of any California tax liabilities after the due of a part of or for each month with an outstanding of 25% maximum of the penalty.
Failures in both filing and paying may be waived if one establishes or has a reasonable cause for such losses.
Possible subjection to tax crime penalty
Civil penalties may be imposed due to failure in paying and filing. Worst case scenario would be the possibility of troublesome behaviors in connection to taxes that may be subject to criminal penalties. Often described or regarded as tax evasion or tax fraud, there are different types of criminal tax penalties. One common example is false tax return filing also, failure in reporting, or overstating income or certain credits or deductions. Tax crimes may be regarded as felonies and taxpayers may face incarceration and monetary fine. Tax crime penalties come both as Federal and California tax crime penalties.
Forms of Tax Relief in Los Angeles
To minimize your burdens of going behind taxes and other liabilities, tax relief may aid in doing so. There are two forms of tax relief in Los Angeles:
First would be those people who are having trouble with high Federal and California income tax rates. Tax relief may help and be involved in helping these taxpayers. That is, these burdened Los Angeles taxpayers may grab the opportunity of appropriate credits and deductions, all possible income tax provisions that would be favorable to them that could lessen the tax liabilities.
Second, for those who are burdened and having trouble paying tax liabilities. These taxpayers face burdens of loss of assets due to levies and tax garnishments, civil penalties, criminal prosecution, and interests. Tax relief also may help taxpayers to grab the opportunity of all possible programs that could, favorably, settle unpaid tax liabilities.
Considering the Federal income tax rates that generally range around 10% to 37%, added with the income tax rates of the California state, Los Angeles taxpayers really do face quite a burden in paying their taxes.
What are Tax Relief Companies?
Also referred to as tax settlement firms, tax relief companies, are for-profit businesses that offer to negotiate with the Internal Revenue Service (IRS) to lower your overall debt or monthly payment. When taxpayers receive several notices from the IRS regarding debt and are concerned about wage garnishment or asset seizure, this is frequently the right time to contact tax relief firms. In general, you should only call a tax relief company if you owe at least $10,000 in taxes. In most circumstances, anything less than this indicates that the company’s costs aren’t worth it.
Why be proactive in paying and filing taxes?
Remember that attempting to avoid paying your tax obligation will not benefit you. In truth, ignoring your tax situation will simply make it worse as interest and costs continue to mount.
Be proactive. How? Submit your taxes, and contact the IRS to learn more about your alternatives. If you’re feeling overwhelmed, do not hesitate to seek help from a competent tax company, firm, or professional. Remember, however, you still have the right to contact the IRS on your own if you will.
Tax Relief Company in Los Angeles
Coast One Tax Group
Coast One Tax Group provides a comprehensive range of tax settlement services for individuals and businesses. IRS and state settlements, bank levies, tax audits, tax liens, wage garnishments, petitions for penalties, and filing of current and previous tax returns are handled by the Tax Attorneys, CPAs, and Enrolled Agents. Individual taxpayers, corporations, groups, and small businesses can all benefit from their assistance in resolving past tax issues. They consider their clients to be the foundation of their business, and it gives them great pleasure to see their clients save big sums of money and get back on track with their taxes. As a result, it’s no surprise that Coast One Tax Group is the top tax relief firm in the area.