Seeking tax attorney in CA to help resolve IRS tax delinquencies, are they negotiable and can I arrange payment plan

I borrowed money against my life insurance policy but I was unable to pay back the loan. As such, interest started to accrue on the loan. After a period of time, I canceled my life insurance policy and I found out that the accrued interested was reported to the IRS as income. So, I was taxed on that amount. How can I resolve this or reduce the amount of tax I have to pay.
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Answers (2)

Pamela Koslyn

Pamela Koslyn

Contributor Level 10
Some IRS delinquencies are negotiable, and it's possible you can arrange a payment plan for these taxes, but if not, the IRS can place tax liens on your property.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
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Henry Daniel Lively

Henry Daniel Lively

Contributor Level 7
The IRS will abate penalties for reasonable cause. It does not sound to me like you have a situation that will meet the criteria. The next step is to look at payment of the tax. You may qualify for a payment plan, or depending on the amount, an Offer in Compromise. If this is not a significant sum, I recommend you just pay it in full and move on.

Disclaimer: This response does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique estate planning challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.

Circular 230 Disclaimer: “Nothing in this response is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same.”
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