The stress of owing the IRS money can be crippling. The IRS can place a lien on your property or even levy your bank account. For whatever reason, you’ve gotten into a tough situation but how do get out? Here are a few options the IRS offers to help.
1. Offer in Compromise (OIC): With an OIC, you offer the IRS an amount of money to settle your tax debt. If the IRS accepts the offer, your taxes will be eliminated for good. To qualify for an OIC, however, you have to show that one, you do not have the resources to pay the debt, and two, even if given time; it is unlikely you will have the resources to pay the debt. Taxpayers who benefit well from an OIC are those who owe a large amount in taxes and have significant financial changes, such as a job loss or huge medical bills. Additional circumstances do exist but require further discussion to identify.
2. Installment Agreement: An Installment Agreement is good for taxpayers who cannot pay their debt in one lump sum, but can pay over a period of time, generally 3 to 5 years. As long as you keep up your installment payments, the IRS will not levy your assets or wages, or try any other collection action.
3. If you do not qualify for either an OIC or an Installment Agreement, the IRS offers more options. For instance, if you have a reasonable cause, request an abatement of any penalties assessed.
These options are available to you as a taxpayer but whichever option of debt resolution you choose, it is important that you use an experienced qualified tax professional to negotiate with the IRS on your behalf.
Our firm has helped many people just like you! We start by submitting a Power of Attorney which immediately begins to relieve your stress by forming a barrier between you and the IRS. Our professional staff will then assess your specific situation and put together a plan of action. As CPA’s with experience in Forensic and Fraud matters, we are more formally educated than most. In addition, although we are not attorneys, with our experience, we will even petition tax court in our attempt to achieve results for you. Either way, we will NOT stop fighting for your interests.
Let our staff help you get out of tax debt and back on track today. Contact us for details!