FAQs
Upon receiving notification from the Internal Revenue Service regarding back taxes owed, the total amount often includes unforeseen penalties and interest charges. One could opt to settle the full balance, inclusive of penalties and interest, or ignore the issue, resulting in accumulating penalties and interest. Alternatively, engaging my services as an Enrolled Agent experienced in addressing back taxes can provide a strategic approach. By assessing your circumstances, we can determine the best course of action, which may include an Offer in Compromise for taxpayers without assets or the means to pay.
An Offer in Compromise represents an extrajudicial agreement between the taxpayer and the IRS to resolve tax liabilities. The IRS has the authority to settle federal tax debts by accepting less than the full payment under specific conditions: Doubt as to liability – Questioning the accuracy of the assessed tax. Doubt as to collectibility (most common) – Doubt that the taxpayer can fully pay the owed amount. Effective tax administration – Addressing economic hardship.
Absolutely! In many cases, the installment agreement can be temporarily suspended while the IRS evaluates your Offer in Compromise.
Following approval by the Internal Revenue Service, you may have up to ninety days or two years to remit the agreed-upon amount. Once the payment is received, all tax liens are lifted, and no further back tax liability exists.
The timeline for IRS review of an Offer in Compromise generally spans eight to ten months. Throughout this period, all collection activities by the IRS are halted.
No, I will manage your case entirely. Any necessary correspondence with the IRS will be handled directly through myself as an Enrolled Agent.
In general, personal income taxes that meet certain criteria—such as being over three years old, assessed at least 240 days before bankruptcy filing, and voluntarily filed at least two years ago—may be included in a bankruptcy. However, most taxes are not dischargeable. Specifically, the trust fund portion of employment taxes cannot be discharged in bankruptcy, making an Offer in Compromise the sole effective means to alleviate this burden.
No, filing all required tax returns is necessary to pursue either an Offer in Compromise or an Installment Agreement. We will assist you in becoming current and devise a strategy for settling the outstanding balance. For many taxpayers, this often leads to an Offer in Compromise.
This determination hinges on your unique circumstances, which vary for each taxpayer. Hence, we offer an initial consultation free of charge to evaluate your situation and recommend the optimal course of action. Notably, an Offer in Compromise does not adversely impact your credit. Upon acceptance and payment of the Offer, all liens are released. To begin, we recommend completing our pre-qualification form and returning it to us or contacting us directly for a thorough assessment.
Your Offer will remain intact provided you comply with the filing and tax payment requirements stipulated for the five years following its IRS approval.
Our fees for an Offer in Compromise are reasonable, based on a flat rate. During your complimentary initial consultation, we will outline the terms of our engagement.
Certainly! The IRS operates nationwide, adhering to uniform guidelines across all offices. Offers in Compromise are processed in New York and Tennessee. With modern communication methods such as mail, phone, fax, and email, we readily accommodate taxpayers nationwide.
The IRS typically requires documents such as paycheck stubs, bank statements, mortgage or rent payments, and utility bills. We will furnish you with a checklist to aid in gathering the necessary documentation for settling your IRS debt.
Failure to file taxes as mandated by law can lead to criminal penalties. Even when filed, tax returns must be accurate and truthful. Detection of falsified returns by the IRS may prompt a fraud referral to its Criminal Investigation Division. Failure to file returns constitutes a felony and can result in imprisonment, substantial penalties, and severe financial consequences.