Offer In Compromise
If you owe back taxes to the IRS, you may be able to settle the debt for less money with an offer in compromise. If the IRS has garnished your wages, placed liens on your belongings or even instituted a levy against your bank accounts, you may be able to halt these collection efforts. An offer in compromise begins formal negotiations between you and the IRS and puts other collection efforts on hold.
An offer in compromise is most likely to be accepted if your tax debt is large and your income and value of assets are low. When calculating your ability to pay the debt, the IRS does not look into your actual expenses. Instead, they use tables which list living allowance amounts.
Preparing an Offer in Compromise
These expense allowances are what you are assumed to be spending on things like housing, utilities, transportation and food. An offer in compromise is used to try to convince the IRS to focus on your actual expenses in determining your ability to pay.
Our Tax Tiger attorneys can review your situation and determine whether you are likely to qualify for an offer in compromise. Our attorneys have nearly 50 years of collective experience negotiating settlements with the IRS. One of our attorneys spent over 25 years working for the IRS, so we know what approaches work best. If your situation warrants an offer in compromise, our team of tax professionals can handle the paperwork filing and negotiations for you. A thorough consultation with our experienced attorneys is free of charge or obligation, so contact us today.
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