Unlock Tax Relief: Explore Your Options Today
Navigating tax issues can be overwhelming, but it doesn't have to be a nightmare. In this edition of our newsletter, we delve into two potential avenues for resolving tax burdens: the Offer in Compromise and Installment Payment Plan.
RESOLUTION: OFFER IN COMPROMISE?
What do you do when you can't pay your taxes? Don't wait for one of these new IRS agents to come knocking on your door and ruin your life, your business, and your marriage. You have so many rights and so many good options. For example, you may ask for an Offer in Compromise and only pay part of what you owe. There are three grounds for Offer in Compromise. The first is doubt as to collectibility. That means you don't have sufficient income and assets to pay your taxes. The second ground is doubt as to liability. That is, if you don't believe you owe the tax, or you don't believe the amount is correct. The third ground is a compassionate one, where it would be considered unfair to collect the taxes. An example of this could be seen for an elderly or an ill person, where it would just be unfair to take anything away from them at this point in their lives.
RESOLUTION: INSTALLMENT PAYMENT PLAN
If you can't pay your taxes in full, another option you have is to make monthly payments. There may be quite a bit of negotiation between you and the IRS over exactly what you can afford. The IRS has something called National Standards, which ironically varies by county. It’s a budget for you that is extremely tight and unlivable for an awful lot of people. What an experienced professional can do is negotiate a reasonable amount that is manageable for you and your family. The IRS agent in charge of your case has a tremendous amount of discretion, and you want to ask him or her to exercise it in your favor. As part of a condition for this arrangement being granted, you have to be in compliance on all your future taxes. Compliance means that you file your returns on time, which includes extensions, and you don't owe the IRS any more money.
In exploring these options, know that we are here to help you find the right path towards tax resolution that best suits your circumstances.