Tax Negotiation

So You Owe Taxes now what?

During your free consultation our tax consultants will review your financial situation and determine what options you qualify for.

IRS Installment Plans

If you cannot pay your tax debt in full, the IRS may agree to let you pay the debt off in monthly installments. There are different installment agreements available depending on what you qualify for. Setting up an installment agreement is a solution that can help you get back on track and pay back your debt in a way you can afford.

Although it seems like a reasonable and simple thing to do on your own you should know that IRS agents are COLLECTION agents. Their job is to collect as much money as soon as possible from you. You do not want to try and set something up on your own because you may end up paying more than you can afford. Our goal is to set up an installment that is in your best interest and pays off the tax debt in the shortest amount of time.

The IRS has different payment options available. One of the most common is the Streamline Installment Agreement. This installment allows taxpayers to pay off their tax debt in 72 months. This is available to tax payers who owe up to 50,000 in tax debt. While on this installment no liens are placed. If there are liens against you, we can remove the liens after 3 consecutive months of direct debit payments.

Offer in Compromise

This option is a way of reducing your tax debt and settling for a lesser amount. The IRS accepts Offer in Compromise requests if you meet certain requirements:

• Doubt as to Liability: The amount of tax assessed may be incorrect

• Doubt as to Collectability: The person filing under this category must demonstrate that they are likely to never be able to pay the full tax debt due to financial hardship or some other compelling reason.

• Effective Tax Administration: This claim states that collecting the tax would create an injustice. Elderly or disabled taxpayers often use this category.

Approved by Congress to aid taxpayers, an Offer in Compromise (OIC) has helped taxpayers settle their tax debt for small amounts that are reasonable and affordable. In some cases, your financial situation may make impossible for you to pay off all your tax debt. In such situations the IRS may be willing to accept an “Offer-in-Compromise” and significantly lower your tax bill. The IRS will accept that there is no way that you can pay off your tax debt because there is not enough income or assets that you can sell to pay this off. Once the settled upon amount is paid off the tax debt is considered “paid in full.”.

The acceptance rate on OIC’s is low due to the complexity. Most taxpayers do not have a clue where to begin.  To have a better chance of approval, one should utilize professional assistance for this complicated process. Our highly qualified, trained, and skilled staff will work very hard to see if this is the best solution for you. We are experienced in preparing, submitting, and settling these cases. By calling one of our Tax Consultants we will answer any doubts you may have and provide you with a better assessment of your options.

Tax Penalty Abatement

If you can pay your full tax obligation, but just want relief on the penalties that have been accumulating this program may be for you. In many cases the Penalty and Interest portion of the tax debt is quite substantial. Penalties can be assessed for many reasons, commonly for not filing or paying your taxes on time. We can help you get those penalties removed and maybe even refunded through this program. To qualify for the penalty abatement program there must be a reasonable cause which can include:

• Mailing the tax return or payment on time but writing the wrong address on the envelope; using the wrong amount of postage

• A death or illness in the family

• An error caused by an IRS employee

• The destruction of records by a fire, flood, or other catastrophe

Currently Not Collectible Status or Financial Hardship

If you simply cannot pay what you owe to the IRS, you may request that your account be placed in Currently Not Collectible or Financial Hardship status. You will need to provide detailed financial information through Form 433A Collection Information Statement for Wage Earners and Self-Employed Individuals. If your request is granted, you will still owe taxes to the IRS, but collection efforts will be temporarily halted. Your circumstances will be re-evaluated under certain conditions and your stay of collection could be lifted.

If there is absolutely no way for you to pay your tax debt because of a hardship that you are enduring and there is no way for the IRS to collect the money owed via the more traditional forms of tax resolution, you may qualify for “currently not collectible” status.

“Currently not collectible” means exactly what it sounds like. The IRS will not be able to collect any owed taxes or penalty charges if:

• Your monthly expenses outweigh your monthly income

• You have no assets worth levying. Remember that the IRS cannot seize an asset if you have less than 20 percent equity in the item or if the expenses involved in seizing and selling it are more than the equity is worth.

If your account is deemed to be uncollectible, the IRS will stop the collection process until your financial situation improves. This does not get rid of the tax debt but rather defers it. and you will have to provide financial statements each year to show whether you are still “currently” unable to pay.  The IRS has a statute of limitations of 10 years. If you are unable to pay during those 10 years or if the 10-year statute of limitations for back taxes expires while you have “currently not collectible” status, the tax debt itself will expire and the tax liability will be removed.