How Much Time Do You Have To Pay Back Taxes In California?
Each American citizen must pay taxes. Your annual income will determine how much tax you owe. This amount may vary from year to year. With a busy schedule, some people forget to pay their taxes in California. However, they still owe the government money. You may owe back taxes if you haven’t paid taxes for any year in the past. The amount of back taxes you have to pay will depend on the person you owe it to, and if there are any exceptions.
The federal and state levels are where taxes are collected. The taxes will be assessed by your home state, while the taxes will be determined at the federal level by the Internal Revenue Service (IRS). There are limitations that restrict the time the federal government and the state can collect back taxes. California’s time limit is 20 Years. The IRS has a shorter time limit of 10 years. It is not smart to try and outlast the deadline as the government could impose penalties against you during that time, including criminal prosecution. You may owe taxes to the IRS or the state if you haven’t paid taxes in a while. Our South California tax lawyers can help you sort out your tax situation, and possibly avoid expensive penalties.
California Taxes: Time Limits
California has its own tax laws, apart from those of the IRS. Taxes in California can be collected at both the federal and state levels. There are deadlines and time limits for when the state can begin collecting back taxes. You may not be required to pay any additional taxes if the state has not collected all your back taxes by the deadline.
The California Revenue and Taxation Code state that the state has a 20-year grace period from the date your taxes are due and payable to be collected. In general, back taxes are due in full once they have been assessed. Many people find it difficult to pay large amounts of back taxes at once.
The state government might allow you to set up payment plans if you are unable to pay all your back Taxes in California at once. Many payment plans have their own deadlines that are different from the 20-year statute of limitations. You could be charged additional fees and penalties if you miss the payment plan deadline. A payment plan must be fully paid within three years, according to SS 19008 under the California Revenue and Taxation Code. These plans can be modified or changed at any time, so your experience could differ.
Sometimes, statutes of limitations or deadlines can be put on hold or suspended under certain conditions. This adds more time. Let’s say the state files a civil suit against you or files a probate court action. The deadline for the state to file a civil action against you or file an action in probate court is extended until the judgment is satisfied.
You should consult a lawyer immediately if you owe back taxes the State of California. It may be a good idea to speak to a tax attorney in Los Angeles to help you decide which course of action is best for your case and help you avoid additional civil or criminal penalties.
Federal Statutes Of Limitations In California On Back Taxes
Federal statutes allow for a more flexible deadline of just 10 years for back taxes to be collected. The statute will expire if the federal government fails to collect back taxes during that time. They will also be prohibited from collecting. This law is found in SS 6502 (Internal Revenue Code). Except for the time limitations, the federal government uses similar procedures as California to collect taxes.
For similar reasons, deadlines may be extended such as when the federal government files a civil suit against you. Similar to the state level, the deadline for collecting extends until the judgment is reached or expires.
You are now dealing with the IRS, not California if you owe back taxes. It can seem daunting and difficult to pay back your back taxes. Many people can’t afford to pay back their taxes. Our California tax lawyers are available to assist you with federal back taxes.
Don’t Wait For California To Resolve Your Tax Obligations
You might wonder if the statute of limitations can be extended if you owe back taxes to either the IRS or California. You can stop the government from collecting back taxes by running down the clock. This is not a good idea, as both the federal and state governments can impose a range of penalties before the time runs out.
The government may start legal proceedings against you if they discover that you owe back taxes. You could be subject to a civil judgment, which could extend the deadline and add additional fees and fines to your total bill. You could also be subject to criminal penalties such as tax fraud or tax evasion.
The government may still attempt to recover back taxes owed by placing a lien on your income or property. Your wages could be garnished until you pay off your debt, or your property could go up for sale. One of Tenina Law’s tax lawyers in Orange County will allow you to devise a strategy for paying back your taxes and possibly avoid any severe penalties.
Choose Tenina Law For Tax Resolution
We are Southern California’s best tax attorneys. Tenina law is a group that has been in business for more than 20 years. We are tax experts and have successfully managed numerous IRS negotiations. No matter if you’re a business owner, or someone looking for immediate help with tax issues, we can help. Penalties and interest will not stop accruing as long as the tax problem isn’t resolved. Our team can help you get the tax assistance that you need quickly. Our team is open and transparent, so you will get the right information to solve your tax problems. We want you to be able to quickly and efficiently get the answers that you need to resolve your tax problems.
The Services Provided By Tenina Law
- IRS Back Taxes
- None Filed Returns
- Asset Or Property Seizure
- Criminal Tax Defense
- Wage Garnishment
- Installment Agreement
- Levies And IRS Liens
- Penalties And Interest
- And more
Contact us today to learn more about Taxes in California and work alongside a tax attorney in Orange County, Sherman Oaks, or one of the many Southern California cities we provide service for.