Your IRS tax problems may see insurmountable to you now, but. our team has the skill and expertise to solve your IRS issues today. We love helping our clients put their IRS mess behind them. Accordingly, it is important for you to know that each case we solve for our client’s depends on the individual facts and circumstances of that particular case. The most favorable tax debt resolution for a client depends on things like the total amount owed, a taxpayer’s equity in assets, the taxpayer’s gross income, the Collection Statue End Date for each tax year, and a taxpayer’s IRS allowable expenses among other things. Therefore, the following list of tax debt resolutions will depend on your own financial situation, and your tax attorney will determine the most favorable option for you:
Currently Not Collectible Status: This tax debt resolution is appropriate for a taxpayer that is unable to currently pay anything towards his or her tax liability. You can qualify for this status if you have no income, or if your gross income – IRS allowable expenses for the county you live in equals zero income remaining. We have many clients that we have placed into CNC status. Once in CNC all collection enforcement activity ceases for one year, but penalties and interest continue to accrue. For those who qualify, CNC provides them with time to concentrate on regaining their financial footing.
Penalty Abatement: We have extensive experience in drafting and negotiating successful penalty abatements. Penalty abatement requests are granted if a taxpayer can argue/show that they acted with reasonable cause and not willful neglect in accruing the tax liability that gave rise to the penalties. We also have the expertise to analyze your IRS transcripts to see if you are eligible for a First Time Penalty Abatement. In either case, we will only recommend a pursing a penalty abatement if a taxpayer is a strong candidate for this resolution.
Offer in Compromise: An offer in compromise is basically a legal excuse for paying less than the total amount of tax owed. We have an extremely high acceptance rate for the offers that we submit on behalf of our clients for the following reasons: (1) we only submit offers for people that are strong candidates for an offer; (2) we know the legal intricacies of the offer process; and (3) we understand how offers are reviewed by Offer Examiners. Don’t be fooled by individuals or firms that claim they can reduce your tax debt for pennies on the dollar without having analyzed your IRS tax transcripts, without knowing the collection statute end date for each tax period owed, and without knowing the National Standards for IRS allowable expenses for your county of residence.
Installment Agreement: In simple terms this is a payment plan. What is not simple is determining the appropriate monthly payment amount. Many taxpayers are unaware of the requirements and pitfalls of setting up a payment plan that is in their best interest. Time and again, we are hired by individuals that have set up payment plans that they can’t afford. When we set up payment plans for our clients we negotiate the lowest legally allowable monthly payment amount. Our goal is to achieve the most favorable outcome for each individual taxpayer. Do not make the mistake of negotiating your own installment agreement without seeking experience professional advice.