Taxing Advice: Offers in Compromise

Taxing Advice: Offers in Compromise: If you owe the IRS money an Offer in Compromise is definitely one of the tools you have available to settle your tax debt.  An Offer in Comp...

Offers in Compromise

If you owe the IRS money an Offer in Compromise is definitely one of the tools you have available to settle your tax debt.  An Offer in Compromise is the only program available with the IRS that allows you to pay less than you actually owe to completely settle your tax debt.

The first thing that needs to be done is determine whether an Offer in Compromise is a viable alternative for you.  Your financial situation and the amount of tax that you owe must be evaluated.  You have to owe enough to the IRS to make an offer practical.  It will cost you several thousand dollars to have an offer professionally prepared and negotiated.  If you don't owe at least  $15,000 or more, an offer may not make sense.  We offer a Free Consultation to determine if you should attempt an offer.

You must also be in current compliance or an offer to be submitted.  Otherwise, it will just be rejected.  This means all your tax filing are current and you are current with any estimated tax payments. 

If you qualify financially and you are in compliance, an Offer in Compromise is one of the best alternatives to settle your tax debt.  You can literally pay pennies on the dollar if your numbers work out this way.

We are very experienced at preparing, submitting, and negotiating Offers in Compromise.  However, we will not take you on as a client unless you meet our initial screening standards to determine that you may qualify for an Offer.  Many other tax professionals cannot make this statement.  Call us today if you would like a Free Initial Consultation to evaluate whether you may qualify for an offer.

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Taxing Advice: ENFORCED COLLECTIONSWhat exactly is enforced coll...

Taxing Advice: ENFORCED COLLECTIONS
What exactly is enforced coll...: ENFORCED COLLECTIONS What exactly is enforced collections? Enforced collections is when the government has exhausted their efforts to...

ENFORCED COLLECTIONS

What exactly is enforced collections?

Enforced collections is when the government has exhausted their efforts to get a taxpayer to voluntarily pay the taxes that they owe.  When this happens the government will go into enforced collections mode.  This means levies, garnishments, and liens.  It is not where you want to be with the government.  The government will work with you to pay your taxes based on your current financial situation.  Thus, there is rarely a good reason to get into a situation whereby the government has to take extreme measures to collect the tax.

Garnishments, Levies and liens can be an embarrassment that you never have to face.  All you need to do is cooperate and work out a plan.  Remember this plan will be based on your current wherewithal to pay.  

What are Your Options?

Your easiest option or the option to use to buy time is to enter into an installment arrangement.  This can also be done while you are doing something else like an Offer in Compromise.  This will stop enforced collection and allow you to have time put other alternatives together while not being under the constant threat of enforced collections.

You can also enter into an Offer in Compromise to pay less than you actually owe.  This is based on your current financial situation and ability to pay.  We analyze our clients current financial situation and present it in the best light possible to the government.

Another option is some circumstances is to put the client on uncollectable status.  No further collection efforts are made while the taxpayer is on uncollectable status, but interest and penalties continues to accrue.  In certain circumstances this can work very well.

Finally, and usually the last step we consider is bankruptcy.  Believe it or not, there are a number of taxes that can be discharged in bankruptcy.

A combination of the above techniques may be used on any given client.  Each case must be reviewed independently to determine the best course of action.  This is why we offer a free initial consultation.  A no risk way to have a tax professional review your situation.