tax relief through offer in compromise

What Is An Offer In Compromise?

What is an Offer in Compromise? 

One option for taxpayers seeking tax relief is the Offer in Compromise, or “OIC”. This is one of the most common solutions for them to settle their tax liabilities. The offer in compromise is an agreement between the taxpayer and the Internal Revenue Service to accept a lump sum payment that is less than the full amount owed in order to settle the tax liabilities.

The offer in compromise is considered the best tax relief option for the taxpayer who wants to settle his or her tax liabilities in as fast and effective way as possible. However, there are important considerations before the IRS will accept the offer in compromise of the taxpayer. This is based on the following factors:

  • The IRS will accept the offer in compromise if there is evidence of doubt as to liability. Instead of battling it out with the taxpayer or the taxpayer’s representative (such as us) as to the rightfulness of the tax liability, the IRS may choose to accept an offer in compromise.
  • The IRS will accept an offer in compromise if the amount that the taxpayer owes is not collectible. If the taxpayer’s assets and liabilities are far less than the total amount of the tax debt the IRS knows it probably cannot collect the entire amount, and may choose to accept an offer in compromise.
  • Some tax debts are dischargeable in bankruptcy. The IRS may choose to accept the offer in compromise rather than try to collect through the bankruptcy Trustee; if it will be able to collect anything at all.
  • If there is a likely change in the taxpayer’s circumstances impending; such as the loss of a job or the onset of large medical bills. Even though the taxpayer is not currently under financial hardship, the coming expenses are so massive it would be unfair for the taxpayer to pay the full amount of taxes due.

The above options mostly require different forms, different supporting documents, and different arguments made to the IRS agent. Filing the wrong forms and documents with the IRS may cause delay or denial of the offer in compromise.

As an option for tax relief, the offer in compromise should be taken into serious consideration. You should also consider hiring a professional to file the forms, documents and talk to the IRS on your behalf.

 

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What If I Can’t Pay My Taxes?

What If I Can’t Pay My Taxes?

In our office, we often get calls from people who do not yet have a tax issue yet they are looking for some general tax advice. Very often, this person has a tax obligation they know they can’t pay, and they know that it’s going to create some kind of tax problem, but they are wondering, “What If I Can’t Pay My Taxes?”

First off, don’t panic!

Second, no matter what your situation is, you still need to file your tax return with the IRS and make sure it is accurate. Do not try to hide anything or change figures from the actual ones in order to lower your tax liability.

NOT FILING YOUR TAX RETURN OR FILING A FRAUDULENT RETURN WILL CAUSE MUCH BIGGER ISSUES THAN FILING A TAX RETURN YOU CAN’T AFFORD!

Third, you should make sure all your prior tax returns are filed with the IRS. The IRS will not allow us to help you start the path to tax relief until you file all your back tax returns.

Finally, you will need to figure out some way to meet your tax liabilities with the IRS. You will need to provide them with certain financials, submit certain application forms. You will need to deal directly with the IRS agent. OR

You can hire a professional to get you on the way to tax relief. We can talk directly to the IRS and IRS agents on your behalf, and make sure they no longer contact you directly. To make sure they only request and receive the documents they really need to make their determination. To make sure that you really owe the IRS the money they claim you owe. To make sure that you get into the proper repayment program and to make sure that you get an acceptable deal for your situation.

 

tax relief attorney

What Is A Tax Levy?

Tax Debt Leads To Tax Levy

A tax debt is one of the most difficult debts to remove, sometimes surviving bankruptcy. The IRS has powers well beyond a regular creditor. Among the best examples of their power is a tax levy: the IRS takes hold of your property to fulfill your tax debts.

About the Tax Levy

A tax levy is a collection tool for the IRS. It authorizes the IRS to seize properties as a tax debt payment, including withdrawing cash from your bank accounts, garnishing your income, and/or taking possession of your personal property such as a home, vehicle or business.

How to Release a Tax Levy and Get Tax Relief?

Your first option for removing a tax levy is to pay the tax debt in full. By paying the tax amount in full, the IRS will instantly stop collection actions and the levy will be removed. However, most of the time if people had the money to pay the taxes they would have paid them from the get go. Here are some other tax relief options:

  • Proving Financial Hardship – if you can prove to the IRS that the levy causes economic hardship and greatly impacts your ability to live, the levy will probably be removed, but the underlying tax obligation will remain, and the IRS may use other tactics to collect your tax debt.
  • Proving your properties have no equity – you can try to prove to the IRS that there would be no point for them to levy your assets as they will get nothing from it.
  • Offer in Compromise – you can try to make the IRS an offer of less than the amount owed and convince them why they should take that amount.
  • Payment Plan – you can try to show financial hardship and set up a payment plan with the IRS, but the amount of the payment plan will depend on how good of a job showing financial hardship.

Get Help with Tax Relief from a Tax Attorney

A tax levy can throw your financial lifestyle into shock. If you really want to get rid of the tax levy permanently, you will want help from a trained professional. IRS Procedures are not an easy thing to understand and navigate. Experience is a great asset when dealing with the IRS.

When you decide to hire a tax relief expert to help resolve your tax liability, do your research and hire a TAX ATTORNEY LIKE US rather than a tax relief company. Tax debt is a legal matter and could have consequences beyond owing money. Depending on your unique tax and financial situation, we can find the options available to you and file the necessary applications and supporting documentation with the IRS on your behalf. Once we tell the IRS we represent you they will stop calling you. We deal and negotiate with the IRS directly on your behalf.