Find the Best Tax Relief in Richmond, VA

Common tax problems in Richmond

People find themselves owing the IRS money for several reasons. For instance, an individual might make a mistake while filing and find out a year later that they owe thousands of dollars more to the IRS.

Others might forget to file their taxes for a year or longer, which could leave them with substantial back taxes plus interest and penalties. If you’re a business owner, you could have payroll tax debt.

If you have tax debt, the IRS will try to collect. It may initiate a tax lien, serve a levy notice or offset refunds. If you’re employed, it may garnish your wages. The different steps the IRS may take are described below:

• Tax lien: A lien is when the IRS files a legal claim against your property or assets in an effort to secure outstanding tax debt. Those who owe more than $10,000 are at risk for a tax lien.
• Tax levy: A tax levy is when the IRS actually seizes your property to satisfy an overdue tax debt. It’s possible to lose your house, car and bank account through an IRS levy.
• Wage garnishment: Wage garnishments are a type of tax levy where the IRS takes part of your paycheck until your debt is resolved. There are a few ways to stop a wage garnishment, but taxpayers typically either settle the debt in full or set up an installment agreement.
• Back taxes: Back taxes accumulate when you don’t pay in full when you file. You can owe back taxes at the federal, state and local levels.

How to get tax relief in Richmond

If you owe more than $10,000, then you will likely benefit from the guidance of a tax relief professional in Richmond. Tax relief companies in Richmond offer free consultations to evaluate your tax debt and go over strategies that may provide you tax relief. You may qualify for an offer in compromise, penalty abatement, installment agreement, innocent spouse relief or currently not collectible status.

• Offer in compromise: An offer in compromise lets you settle your tax debt for less than the full amount you owe. The IRS accepts an offer in compromise if it believes the amount offered is the most it can expect to collect in a reasonable period of time. You can pay using a lump sum or monthly payments.
• Penalty abatement: The IRS may relieve you of penalties for failing to file or failing to pay on time if you meet certain conditions, like having no penalties for the previous three tax years.
• Installment agreement: You may be able to set up a monthly payment plan with the IRS. Options include short-term payment plans and long-term payment plans of more than 120 days.
• Innocent spouse relief: If your spouse improperly reported or omitted details on your jointly filed tax return, you may be relieved of having to pay taxes, interest and penalties.
• Currently not collectible: If you can’t pay your taxes while continuing to pay for living expenses, the IRS may agree to put your account in “currently not collectible” status. The agency will continue to charge interest and penalties, but it won’t try to collect until your financial situation improves.

Before taking on your case, a tax relief company evaluates your situation to decide the option that’s right for you. Enrolled agents and tax attorneys consider the type of debt you owe, the amount of debt and how much money you can afford to pay the IRS.

Richmond tax relief FAQ

How much does tax relief cost in Richmond?

The cost of professional tax relief in Richmond generally ranges from about $1,000 to $10,000. The price varies according to the complexity of the case. You may be charged based on the amount of debt you owe, the number of hours specialists work on your case or a flat rate. Most tax relief companies offer a free consultation to go over your situation, determine the best tax relief strategy and discuss pricing.

How do I check if I owe Virginia state taxes?

If you are required to file a federal income tax return, have Virginia adjusted gross income greater than threshold amounts listed by Virginia Tax and are a resident, part-year resident or nonresident of Virginia, you could potentially owe taxes in the state and are required to file an income tax return. For more information, contact the state department of taxation at (804) 367-8031.

Can you pay Virginia taxes with a credit card?

Yes, you can use a credit or debit card to pay your Virginia taxes. The state accepts Mastercard, Visa, Discover and American Express credit cards. It also accepts Mastercard and Visa debit cards. There is a convenience fee for online payments.

What happens when the IRS sends you to collections?

The collections process starts when you receive a bill for the amount you owe. It is then up to you to propose an installment agreement or offer in compromise or request your account be reported as currently not collectible. If you don’t reach out to the IRS, the agency may file a notice of a federal tax lien, serve a notice of levy or offset a refund to which you’re entitled. The IRS may then seize your wages, bank account, Social Security benefits or property, including cars, boats or real estate.

Do Virginia state tax liens expire?

A memorandum of lien, or judgment against your property in favor of the commonwealth of Virginia, stays in effect for 20 years or until you fulfill your tax debt, according to the “Virginia Taxpayer Bill of Rights.”

What is the punishment for not paying taxes in Virginia?

If you underpay, file late or make late payment, you may be subject to an extension penalty (maximum of 12% of tax due), late filing penalty (maximum of 30% of tax due) and late payment penalty (maximum of 30% of tax due). The state also charges interest on unpaid taxes.

If you file a false or fraudulent return, or if you fail or refuse to file a return with the intent to avoid paying taxes, you could face a civil penalty of 100% of the correct tax. Fraud and failure to file are also subject to criminal penalties of one year of imprisonment, a $2,500 fine or both. For more information, visit the Virginia Department of Taxation website.