Find Tax Relief Attorneies Near You in Burbank, CA

Typical costs for a tax relief attorney in California range from $3,000 to $10,000 for flat-fee cases such as offers in compromise or installment agreement negotiations. Hourly billing rates for experienced tax attorneys generally fall between $300 and $600 per hour, with retainer amounts of $2,500 to $5,000 required upfront. Some attorneys offer unbundled services for specific tasks, such as preparing an offer in compromise application for $1,500 to $3,000, or representing a client at an IRS audit for $2,000 to $5,000. Payment plans for legal fees are sometimes available, though interest or administrative fees may apply.

This information is general and does not constitute legal advice. Tax laws and fee structures vary based on individual circumstances, and you should consult with a qualified tax professional regarding your specific situation.

Tax relief attorneys in Burbank, California assist individuals and businesses facing serious tax collection actions from both the Internal Revenue Service and the California Franchise Tax Board. These legal professionals handle a wide range of federal and state tax problems, including back taxes owed from prior years, IRS audits that uncover discrepancies, tax liens filed against property, tax levies that seize bank accounts or wages, and wage garnishment orders that take a portion of each paycheck. Common resolution tools include offers in compromise, which allow taxpayers to settle debts for less than the full amount owed, installment agreements that break balances into manageable monthly payments, and penalty abatement requests that remove or reduce failure-to-pay and failure-to-file penalties. Each situation requires careful analysis of the taxpayer's financial circumstances, the amount owed, and the specific collection actions already taken by the taxing authorities.

Federal tax issues often begin with IRS notices mailed to the taxpayer's last known address. These notices escalate from a simple balance due letter to a formal Notice of Federal Tax Lien, which publicly records the debt against real estate and other assets. If the taxpayer does not respond, the IRS may issue a Notice of Levy, authorizing seizure of bank accounts, wages, or retirement funds. The IRS generally has ten years from the date of assessment to collect unpaid taxes, as set forth in Internal Revenue Code Section 6502. This statute of limitations can be extended if the taxpayer signs a waiver or files for bankruptcy. Innocent spouse relief under Section 6015 of the Internal Revenue Code may be available for taxpayers who filed joint returns but had no knowledge of the other spouse's understatement of tax. Currently not collectible status is another option for taxpayers who can demonstrate that paying any amount would cause economic hardship, as defined by IRS financial standards for necessary living expenses.

State tax issues in California are handled by the California Franchise Tax Board, which has its own enforcement powers separate from the IRS. The FTB can file state tax liens, levy bank accounts, and garnish wages without a court order. California imposes its own set of penalties, including a 5 percent penalty for failure to file a timely return, plus an additional 0.5 percent per month for failure to pay up to 25 percent of the unpaid tax. The FTB also offers its own offer in compromise program, known as the Offer in Compromise Program, which allows qualifying taxpayers to settle state tax debts for less than the full amount. State tax liens in California remain in effect for ten years from the date of assessment and can be renewed for an additional ten years if the FTB files a renewal notice. Unlike the IRS, the FTB does not have a formal currently not collectible program, but taxpayers may request a temporary hold on collection activity based on financial hardship.

Resolution options for tax debt vary depending on the taxpayer's ability to pay and the nature of the debt. An offer in compromise allows taxpayers to settle federal tax debts for a lump sum amount that is less than the total owed, but the IRS requires a detailed financial disclosure and a nonrefundable application fee of $205, plus a 20 percent deposit of the offer amount for lump sum offers. Installment agreements are more common and can be set up for balances under $50,000 with streamlined approval, requiring monthly payments over up to 72 months. Penalty abatement is available for first-time penalty abatement under IRS guidelines, which applies to taxpayers who have not had any penalties in the prior three years and have filed all required returns. Reasonable cause abatement is also possible for taxpayers who can show circumstances such as serious illness, natural disasters, or reliance on incorrect professional advice. Bankruptcy can discharge certain tax debts, but only if the taxes are income taxes, the return was due at least three years before filing, the return was filed at least two years before filing, and the tax was assessed at least 240 days before filing.

When hiring a tax relief attorney in Burbank, taxpayers should expect flat fees ranging from $3,000 to $10,000 or more for complex cases such as offers in compromise or audit representation. Hourly rates for experienced tax attorneys typically range from $300 to $600 per hour, with some firms charging a retainer upfront. Taxpayers should be cautious of tax relief scams, which often promise unrealistic results such as settling debts for pennies on the dollar without reviewing financial documents, or demand full payment before any work is performed. Legitimate tax relief professionals include enrolled agents, who are federally licensed to represent taxpayers before the IRS; certified public accountants, who can prepare returns and represent clients in certain matters; and attorneys, who have the broadest authority to represent clients in court if litigation becomes necessary. Attorneys are particularly valuable for cases involving tax court petitions, criminal tax investigations, or complex legal issues such as innocent spouse relief.

A taxpayer should consider hiring a tax relief attorney immediately upon receiving an IRS notice that indicates a balance due or an audit. If a revenue officer has been assigned to the case, the taxpayer has a limited window to respond before enforced collection actions begin. A bank account levy or wage garnishment requires urgent legal intervention to stop the seizure of funds or income. Audit notifications should be taken seriously, as failure to respond can result in the IRS determining a deficiency based on default. Unfiled returns are another critical trigger, as the IRS can file a substitute for return on the taxpayer's behalf, which typically results in a higher tax liability because standard deductions and credits are not applied. In all of these situations, prompt engagement of a qualified tax relief attorney can help protect the taxpayer's rights and explore all available resolution options.