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RJS LAW - Tax and Estate Planning

RJS LAW: San Diego Tax Attorney | IRS | FTB | CPA | California

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SOUTHERN CALIFORNIA’S FINEST
LAW FIRM

COMPLIMENTARY CASE EVALUATION

SAN DIEGO
(619) 595-1655
ORANGE COUNTY
(949) 535-2000
El CAJON
(619) 777-7700
  • Home
  • About
    • Ronson J. Shamoun, ESQ., LL.M.
    • Chandara Diep, ESQ., LL.M.
    • Joseph Cole, ESQ., LL.M.
    • Devon J. Arabo, ESQ., LL.M.
    • Daniel Huynh, Esq., LL.M.
    • Christopher Engelmann, ESQ., LL.M.
    • Leslie Miranda, Esq., LL.M.
    • Brian M. Malloy, Esq.
    • Steve S. Mattia, Esq.
    • Sam Imandoust, ESQ., LL.M
    • Kaveh Imandoust, JD, MBT, CPA
    • Andrea Cisneros Valdez, Esq., LL.M.
    • Martin Schainbaum, ESQ., LL.M.
    • RICHARD KOMISARS III, ESQ.
    • Thomas K. Shanner, Esq.
    • Dod Ghassemkhani, ESQ.
    • Vincent Renda, Esq.
    • Pedro Bernal, Esq.
    • Melanie M. Shamoun
    • Sandie Portilla
    • Renae Arabo
    • Sabri P. Shamoun
    • Hilary Dargavell
    • Lupita C. Torres
    • Jewell Cornejo
    • Remy Hogan
    • Judith Jeremie
    • Zachary K. McDaniel
    • Sarah Becker
    • Marley Smith-Peters
    • Kesia Belford
  • Practices
    • ERTC – Call Us Before It’s Too Late!
    • Tax
      • IRS TAX MATTERS
        • IRS Appeals
          • IRS Appeals Process
          • Contesting an IRS Levy
          • Why Retain RJS LAW for IRS Appeals
          • 4 Tips For Navigating The IRS Rapid Appeals Process
        • IRS AUDITS
          • IRS Correspondence Audits
          • What are IRS Field Audits?
          • Initial IRS Compliance Center Audits
          • IRS Office Audits
          • What happens in an IRS Audit?
          • Taxpayer Rights Under IRS Publication 1
          • IRS Warns Taxpayers About Scam
        • NOTICES
          • IRS Notices
          • IRS Letters
          • FTB Notices
          • Avisos en Español
        • IRS Collections
          • Avoiding and Eliminating IRS Tax Liens
          • Collection Due Process Hearing
          • CP 501 – IRS Notice
          • Failure to file a tax return: What happens?
          • How the IRS calculates interest
          • How to get a tax levy released
          • ACS – Automated Collection System
          • IRS Collections Process
          • IRS Interest Abatement
          • IRS Revenue Officers
          • Jeopardy Assessments and Jeopardy Levies
          • National Tax Agencies
          • RJS LAW Approach to Collections
          • IRS Statute of Limitations on Collections
          • Streamlined Installment Agreements
          • Tax Penalty Abatement
          • Taxpayer Assistance Orders
        • IRS Payroll Tax
          • Independent Contractor Reclassification Audits
          • IRS Forms 940 and 941
          • IRS Trust Fund Interviews
          • Payroll Tax Liability Payment Options
          • Trust Fund Recovery Penalties
        • IRS Wealth Squad
        • Offer in Compromise & Tax Settlements
          • OVERVIEW OF OFFER IN COMPROMISE PROCESS
          • The Offer in Compromise Process
          • Appealing an Offer in Compromise
          • How does the IRS evaluate an Offer in Compromise
          • Offer in Compromise and Dissipated Assets
          • Offer in Compromise Requirements
          • Pros and Cons of an Offer in Compromise
          • Why Choose RJS LAW?
          • Offer in Compromise Alternatives
          • Actual IRS Offer in Compromise Results
      • STATE TAX MATTERS
        • EDD California Payroll Tax Lawyer
          • EDD Investigations
          • EDD Collections – Liens, Levies, and Garnishments
        • CDTFA – California Sales Tax
          • California Sales Tax Appeals
          • California Sales Tax Audits
          • California Department Of Tax And Fee Administration – CDTFA
        • California State Tax Matters – California Franchise Tax Board | FTB | EDD
          • California Residency Audits
          • Discharging State Income Taxes in Bankruptcy
          • State Tax Practice – Outside of California
      • CRIMINAL TAX ISSUES
        • Criminal Investigation Division
        • IRS Criminal Investigation Division Tactics
        • Criminal Tax Defense – Tax Crimes
        • Currency Transaction Records & Suspicious Activity Reports
        • IRS Methods of Proof: Tax Fraud and Evasion
        • Methods IRS Agents Use to Locate Assets
        • IRS Special Agent Visits
        • Are You a Criminal Investigation Target?
        • Criminal Tax Attorney vs. White Collar Defense
      • CORPORATE TAXES
      • TAX COURT LITIGATION
      • Innocent Spouse Relief
    • International Tax
    • Estate Planning
    • Trust, Estate & Probate Litigation
    • Trust & Estate Administration
    • Probate
    • Bankruptcy
    • Civil Litigation
    • Criminal Defense
    • Accidents & Injury
    • Corporate & Transactional
    • Private Wealth Services
    • Real Estate Law
      • Landlord Tenant Law
    • Employment Law
  • Tax Institute
    • 7th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 15th 2022
    • 6th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 5th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 4th Annual USD School of Law – RJS LAW Tax Controversy Institute
  • Testimonials
  • Giving
    • Giving
    • RJS Law Donates Billboard to the Girl Scouts
  • Awards
    • Awards
    • Ronson J. Shamoun at events with various dignitaries
    • SD50 Extraordinary Leadership
    • Media
    • Video Gallery
  • Blog
  • Pay
  • Contact
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WINNER OF THE UNION TRIBUNE SAN DIEGO'S BEST TAX LAW FIRM

 


8 YEARS

Call
Contact
Blog
  • Home
  • About
    • Ronson J. Shamoun, ESQ., LL.M.
    • Chandara Diep, ESQ., LL.M.
    • Joseph Cole, ESQ., LL.M.
    • Devon J. Arabo, ESQ., LL.M.
    • Daniel Huynh, Esq., LL.M.
    • Christopher Engelmann, ESQ., LL.M.
    • Leslie Miranda, Esq., LL.M.
    • Brian M. Malloy, Esq.
    • Steve S. Mattia, Esq.
    • Sam Imandoust, ESQ., LL.M
    • Kaveh Imandoust, JD, MBT, CPA
    • Andrea Cisneros Valdez, Esq., LL.M.
    • Martin Schainbaum, ESQ., LL.M.
    • RICHARD KOMISARS III, ESQ.
    • Thomas K. Shanner, Esq.
    • Dod Ghassemkhani, ESQ.
    • Vincent Renda, Esq.
    • Pedro Bernal, Esq.
    • Melanie M. Shamoun
    • Sandie Portilla
    • Renae Arabo
    • Sabri P. Shamoun
    • Hilary Dargavell
    • Lupita C. Torres
    • Jewell Cornejo
    • Remy Hogan
    • Judith Jeremie
    • Zachary K. McDaniel
    • Sarah Becker
    • Marley Smith-Peters
    • Kesia Belford
  • Practices
    • ERTC – Call Us Before It’s Too Late!
    • Tax
      • IRS TAX MATTERS
        • IRS Appeals
          • IRS Appeals Process
          • Contesting an IRS Levy
          • Why Retain RJS LAW for IRS Appeals
          • 4 Tips For Navigating The IRS Rapid Appeals Process
        • IRS AUDITS
          • IRS Correspondence Audits
          • What are IRS Field Audits?
          • Initial IRS Compliance Center Audits
          • IRS Office Audits
          • What happens in an IRS Audit?
          • Taxpayer Rights Under IRS Publication 1
          • IRS Warns Taxpayers About Scam
        • NOTICES
          • IRS Notices
          • IRS Letters
          • FTB Notices
          • Avisos en Español
        • IRS Collections
          • Avoiding and Eliminating IRS Tax Liens
          • Collection Due Process Hearing
          • CP 501 – IRS Notice
          • Failure to file a tax return: What happens?
          • How the IRS calculates interest
          • How to get a tax levy released
          • ACS – Automated Collection System
          • IRS Collections Process
          • IRS Interest Abatement
          • IRS Revenue Officers
          • Jeopardy Assessments and Jeopardy Levies
          • National Tax Agencies
          • RJS LAW Approach to Collections
          • IRS Statute of Limitations on Collections
          • Streamlined Installment Agreements
          • Tax Penalty Abatement
          • Taxpayer Assistance Orders
        • IRS Payroll Tax
          • Independent Contractor Reclassification Audits
          • IRS Forms 940 and 941
          • IRS Trust Fund Interviews
          • Payroll Tax Liability Payment Options
          • Trust Fund Recovery Penalties
        • IRS Wealth Squad
        • Offer in Compromise & Tax Settlements
          • OVERVIEW OF OFFER IN COMPROMISE PROCESS
          • The Offer in Compromise Process
          • Appealing an Offer in Compromise
          • How does the IRS evaluate an Offer in Compromise
          • Offer in Compromise and Dissipated Assets
          • Offer in Compromise Requirements
          • Pros and Cons of an Offer in Compromise
          • Why Choose RJS LAW?
          • Offer in Compromise Alternatives
          • Actual IRS Offer in Compromise Results
      • STATE TAX MATTERS
        • EDD California Payroll Tax Lawyer
          • EDD Investigations
          • EDD Collections – Liens, Levies, and Garnishments
        • CDTFA – California Sales Tax
          • California Sales Tax Appeals
          • California Sales Tax Audits
          • California Department Of Tax And Fee Administration – CDTFA
        • California State Tax Matters – California Franchise Tax Board | FTB | EDD
          • California Residency Audits
          • Discharging State Income Taxes in Bankruptcy
          • State Tax Practice – Outside of California
      • CRIMINAL TAX ISSUES
        • Criminal Investigation Division
        • IRS Criminal Investigation Division Tactics
        • Criminal Tax Defense – Tax Crimes
        • Currency Transaction Records & Suspicious Activity Reports
        • IRS Methods of Proof: Tax Fraud and Evasion
        • Methods IRS Agents Use to Locate Assets
        • IRS Special Agent Visits
        • Are You a Criminal Investigation Target?
        • Criminal Tax Attorney vs. White Collar Defense
      • CORPORATE TAXES
      • TAX COURT LITIGATION
      • Innocent Spouse Relief
    • International Tax
    • Estate Planning
    • Trust, Estate & Probate Litigation
    • Trust & Estate Administration
    • Probate
    • Bankruptcy
    • Civil Litigation
    • Criminal Defense
    • Accidents & Injury
    • Corporate & Transactional
    • Private Wealth Services
    • Real Estate Law
      • Landlord Tenant Law
    • Employment Law
  • Tax Institute
    • 7th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 15th 2022
    • 6th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 5th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 4th Annual USD School of Law – RJS LAW Tax Controversy Institute
  • Testimonials
  • Giving
    • Giving
    • RJS Law Donates Billboard to the Girl Scouts
  • Awards
    • Awards
    • Ronson J. Shamoun at events with various dignitaries
    • SD50 Extraordinary Leadership
    • Media
    • Video Gallery
  • Blog
  • Pay
  • Contact

Discharging State Income Taxes in Bankruptcy

Bankruptcy TaxesDischarging State Income Taxes in Bankruptcy.  FTB California State income tax can be burdensome and may contribute to a debtor’s decision to file for bankruptcy. Fortunately, state income tax is dischargeable in bankruptcy taxes under certain circumstances. Those circumstances are largely identical to the circumstances under which federal income taxes can be discharged, as the power of the bankruptcy courts are not affected by whether the taxes are state or federal.

First, the bankruptcy must be filed three years from the date the return was due (including extensions).  To give an example, the due date of the 2017 Form 540 (with extension) was  October  15, 2018.  A 2017 California income tax liability cannot be discharged in bankruptcy until October 15, 2021.

Second, debtors seeking to discharge state income tax must have filed a tax return for the income tax on which they seek to have discharged. That tax return does not have to have been filed on time; a late tax return filing will suffice, as long as the return was filed more than two years before the bankruptcy commences.   However, under the current bankruptcy laws, state and federal taxes cannot be discharged in bankruptcy if the IRS or state files a return on your behalf.

Next, the state tax authority must have assessed the state income tax more than 240 days before the debtor files a bankruptcy case. While federal taxes are usually assessed within six weeks of the filing of a tax return, the time between the filing of a tax return and the corresponding assessment will vary from state to state.

Finally, the debtor must not have attempted to defraud the taxing authority by filing a fraudulent return.  Even where these requirements are not met, and a debtor is not be able to successfully discharge state taxes in Chapter 7 bankruptcy, it may be possible to force a Chapter 13 payment plan upon a state taxing authority.

When a state income tax debt cannot be discharged, one might attempt to settle it in a number of ways. Installment plans might provide one option to the financially downtrodden taxpayer, and the state taxing authorities are likely to work with taxpayers to allow them to pay in a viable manner. There may even be ways to reduce the overall amount owed to the state taxing authorities. Just as the federal Internal Revenue Service (IRS) has Offer in Compromise options, the state tax authorities may also be willing to settle tax debts with debtors that cannot pay.

Finally, collection reprieves may also be possible, where the debt remains outstanding but the state agrees not to attempt collection of the debts due to financial hardship. As is the case on the federal tax level, state taxing authorities will likely want to see continuing evidence of financial hardship to justify a continuation of a collection suspension.

Please contact us for more information about bankruptcy and debt settlement. RJS LAW is an honest, ethical and trustworthy law firm that can guide you through the process referring you to trusting professionals. Phone: (619) 595-1655

We have a strong trusted relationship with University of San Diego, USD School of Business and USD Law School

Types of Bankruptcy

  • Chapter 7
  • Chapter 11
  • Chapter 12
  • Chapter 13
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Services

  • IRS Tax Matters
  • State Tax Matters
  • International Tax Attorney
  • Criminal Tax Issues
  • Corporate and Transactional
  • Tax Court Litigation
  • Trust, Estate & Probate Litigation
  • Trust Administration
  • Probate
  • Criminal Defense
  • Bankruptcy
  • Civil Litigation

Testimonials

Compassionate. Knowledgeable. Capable. The team at RJS, specifically Brad, Marisol and Ronnie were on top of all of our issues. They were efficient and communicated with us on every step. Finding a team that is on top of their game like RJS is a tough find.... add to that the compassion and care they provide makes them second to none. Call them now. - Mike G.
RJS Law firm was very professional and someone was always available to answer our questions. They really looked out for our interest only! If you want the best Law Firm Representing YOU, These guys are absolutely SECOND TO NONE!!! I  highly recommend them! Thank you for solving my tax problems! You guys Rock! - Mike S.
Amazing!  In today's world of NO customer service and only internal focus, The RJS Law firm and Chandara in particular completely changed my perspective.   Due to a complicated personal situation, I found myself  in a difficult position with the IRS.  One call and I can not tell you how relieved I am.  I can breathe again, and what is even more amazing-  I do not need an attorney.  Chandara advised me on how to resolve this myself.  It would have been easy to just take my money and add further stress to the situation,  but she didn't. I believe that nothing but good can come from true acts of kindness, so I truly thank her and RJS for outstanding service and should I ever need an attorney-  she will be my first call. - Michele W.
Calling this firm put me at ease. I had sleepless nights as I was procrastinating to take care of my problems; I didn’t know how to go about them. Seeking legal help is always a good way to go, as they are more suited for the job. Chandara has guided me through the process of my stressful situation. No strings attached but I couldn’t let go, I truly recommend them. They will give you sincere and honest answers at all times. I couldn’t be more at ease with my family taking this a step at a time. - Kimberly
I have been a tax client of RJS Law for nearly 10 years. Mr. Shamoun and his team have always delivered results above and beyond my expectations. My attorney has always been just a phone call away when I need advice. I would highly recommend RJS Law to anyone in need of representation for tax related matters! - Brad
My grandmother and I called RJS LAW because she fell behind on her business taxes. She no longer owns the business so she wanted to get back on track and settle that debt. Brendan was very informative and very helpful. We set up a consultation and everyone at the firm was very polite. Brendan helped us create a plan so that we can get resolution to the problem. He helped turn this insurmountable issue into something manageable going forward. I highly recommend this place! - Deana
With no doubt I have to say I have the best advice going forward. I was in the military residing from California but I was stationed in Texas and I didn’t know my filing requirements. Not only I got my questions answered by they gave me free knowledge that I wouldn’t ever had known. I feel comfortable with filing now and going forward I will know what’s best for me. The best thing I liked about this firm is that they answered right away! Transferred my call to an attorney and got it done! In no time! Highly professional and helpful! - Karla
We worked with Brad Paladini on an appeal for an Offer in Compromise we previously submitted on our own. Looking back we should have hired RJS BEFORE we tried submitting an OIC on our own. Brad was amazing to work with on the OIC appeal and literally saved us over $100,000 in taxes. Didn’t show any judgement, took over all the IRS communications and helped us get all the paperwork the IRS was requesting. He fought for us like a bulldog to win the appeal. We are so thankful we found RJS LAW through Yelp and decided to write a review to pay it forward! - Holly
RJS LAW San Diego came to us highly recommended. The firm delivers with precision, tact and professionalism. They are not cheap, but cheap doesn’t always deliver. Ronnie Shamoun, Quinn Disparte, and their associates treated our case with respect, dignity, empathy and speed. They were able to get our case dismissed timely, as promised and without any of the associated headaches that normally come with the territory. The end result was tremendous peace of mind. If that is what your ultimate goal is you need not look any further. - Mandana

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303 A Street
Suite 400
San Diego, CA 92101

Phone No.
(619) 595-1655

ORANGE COUNTY

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2 Park Plaza
Suite 870
Irvine, CA 92614

Phone No.
(949) 535-2000

El CAJON

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900 N. Cuyamaca St., Suite 101
El Cajon, CA 92020

Phone No.
(619) 777-7700


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