As a graduate of the University of Washington Law School Masters of Taxation program, Mr. Harrington is well aware of the significant problems that taxpayers can face in dealing with the Internal Revenue Service (IRS) and the Franchise Tax Board (FTB). While many late-night commercials claim that tax liabilities can be settled for pennies on the dollar, the truth is frequently more complicated. Dealing with a tax problem starts by determining whether the taxpayer is truly responsible for the amount that the IRS or FTB claims is owed. Unfortunately, these agencies sometimes make errors and attempt to pursue collection against individuals that either do not owe what is claimed, or are eligible to have the liability excused-by seeking innocent spouse or other relief. 

 

       Sometimes the liability is not in dispute, but the taxpayer cannot pay the full liability that is due. Fortunately, it is usually possible to work with both the IRS and FTB to develop a payment plan that will stop garnishments and will allow the taxpayer to pay the full balance over time. If the taxpayer is truly destitute, there are situations that will allow for settlement for less than the balance due, but these situations generally involve taxpayers with very limited means. As a result of recent changes in the bankruptcy law, it can be very challenging to get tax liabilities discharged through bankruptcy. If you are facing a significant tax liability, it is in your best interest to discuss your situation with an attorney experienced in tax matters to review your options.