Settle Tax Debt and IRS Problems
If you owe back federal or state income or employment taxes or if you have been
threatened with a levy, lien or seizure, let our tax professionals represent you
and help to resolve your tax problems! Even if you can’t afford to pay your back
taxes, we can give you the help you need to settle your tax debt. The first step
towards identifying the best solution for your problem is to call us now for a free
consultation. One of our trained consultants will assess your situation and give
you preliminary advice as to the best approach. The settlement or resolution of
your federal tax problem may involve the use of one of the techniques described
below.
Installment Agreements. If you owe less than $10,000 in back taxes, the IRS
must grant you a payment plan over not more than 36 months. This assumes that you
have filed all your tax returns and have an otherwise clean record with the IRS.
If you owe more than $10,000, we can help settle you debt for the lowest possible
amount while working to remove any wage garnishments, bank levies or tax liens.
The IRS will not enforce collection action or otherwise pursue levies or garnishments
as long as you make your monthly payments.
Offer In Compromise. An Offer In Compromise (OIC) is an agreement between
the IRS and the taxpayer that settles taxes for less than the full amount owed.
Offers are generally not accepted if the IRS believes that the balance can be paid
in a lump sum or through an installment agreement. The IRS may accept less than
the full balance owed if there is doubt that you will ever be able to pay or there
is doubt as to whether the tax is correct. The calculations to qualify for an OIC
are complex and consider future income less certain amounts allowed for basic living
expenses. You should only consider an OIC with professional assistance as the IRS
accepts only a small percentage of OICs filed. An ethical settlement company will
only offer this option after careful analysis of all facts.
Expiration of Back Taxes. The IRS cannot collect expired back taxes. Generally,
the IRS has ten years from the date of assessment to collect back taxes. An analysis
of your IRS transcript of account can determine if you may qualify for this approach.
Innocent Spouse Relief. You can be relieved of responsibility for paying
tax, interest and penalties if your spouse or former spouse improperly reported
items on your joint tax return that you did not know were incorrect. This can include
unreported income and incorrect deductions.
Regardless of the best approach, the most important thing is to resolve your back
taxes. Remember, the IRS can be more aggressive than other creditors and income
taxes are not always dischargeable in bankruptcy.