Settlement of Tax Debts and Penalty Abatement
The IRS is one of the world’s largest collection agencies with almost unlimited resources. You don’t want to go up against them alone. We have the knowledge and experience to guide you through the IRS collections process and get you the best possible result.
Sometimes that’s an offer in compromise, sometimes it’s a payment plan, and sometimes it’s currently not collectible status. We’ll work with you to determine what’s best for your situation. Our experience in dealing with the IRS will make sure that you get the best deal possible.
An Offer in Compromise is a procedure used to offer to pay the IRS an amount that is less than the total amount that you owe in back taxes. Like most things IRS related, it is governed by a strict set of rules and regulations – and not everyone will qualify. How the application is completed can often make the difference between whether your offer is accepted and will also have a significant impact on the amount that you are asked to pay.
With every new client, we first complete an exhaustive analysis of your financial situation to see what the best options are for resolving your back-tax debt. An offer is where everyone wants to start because it results in the least amount of taxes paid if successful.
However, if an offer is not an option, there are other ways to help resolve your tax debt.
Can an Installment Agreement help you Resolve Tax Debt?
An Installment Agreement could also help you resolve your tax debt. The trick with an installment agreement is to keep the monthly payment as low as possible to make sure that you are always able to make the monthly payments to the IRS. You can send additional money to the IRS at any time, if your finances permit. When calculating the amount that you have remaining at the end of the month to pay them, the IRS will often disallow traditional expenses, such as your monthly credit card payments. Unless property addressed, this can result in an extremely high monthly IRS payment that is unmanageable for the taxpayer.
Financially unable to make payments to the IRS?
If you are financially unable to make payments to the IRS, Currently Not Collectible (“CNC”) status may be an option for you. Again, there are strict guidelines to obtain CNC status, but if accepted it will stop further IRS collection activities for a period of time and give you some breathing room. Your back taxes won’t go away, but you also won’t be subject to further liens or levies.
Do You Have Tax Penalties?
Depending on the type of tax and how long it has been assessed, penalties can make up a significant portion of what you owe. We review every case for potential penalty abatement and/or reduction. Often, abatement of penalties alone can result in significant savings. Knowing the best methods to request abatement and the standards the IRS uses to evaluate a claim for reduced or abated penalties allows us to achieve the best possible results for our clients.
Navigating the IRS collections process is something you shouldn’t do alone. The IRS has no interest in finding the best solution for you and is only concerned with collecting their taxes as quickly as possible. You need to have someone on your side to even the playing field and make sure that you are protected.